UCB to form subsidiaries in Hong Kong, Malaysia
The bank in its disclosure on Thursday said it will form a fully owned subsidiary company in Hong Kong having paid-up capital of HK$50 lakh, which is equivalent to US$6.5 lakh
- UCB currently has 4 subsidiaries including brokerage, asset management, and fintech company
- 2021 Financials
- Profit declined 17%
- Recommended a 10% stock dividend
- 2020 Financials
- Profit grew 3%
- Paid 5% cash, 5% stock divide
United Commercial Bank (UCB) — a first-generation private sector lender in Bangladesh — has decided to form two subsidiaries in Hong Kong and Malaysia to conduct trade finance, and money services business (MSB).
The bank in a filing on the stock exchanges on Thursday revealed its decision to form the subsidiaries, which is subject to regulatory approval.
In a separate disclosure on the day, the bank said it had reported a 17% decrease in profit and recommended a 10% stock dividend for the shareholders for 2021.
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According to its annual report, UCB has four subsidiaries such as UCB Stock Brokerage, UCB Investment, UCB Asset Management, and UCB Fintech Company Limited.
The bank in its disclosure on Thursday said it will form a fully owned subsidiary company in Hong Kong having paid-up capital of HK$50 lakh, which is equivalent to US$6.5 lakh.
The company will conduct trade finance and other business, according to the disclosure.
In another disclosure, it said it will form another subsidiary for operating a money services business (MSB).
The paid-up capital of the new company will be 40 lakh Malaysian ringgit, which is equivalent to US$9.5 lakh.
UCB's profit fell by 17% in 2021
The bank has reported a 17% fall in its net profit in 2021 as compared to 2020, although it had reported a 3% year-on-year growth in profit in 2020.
In 2021, the consolidated earnings per share (EPS) declined to Tk1.92, which was Tk2.31 in the previous year.
However, the EPS of the bank on a solo basis increased by 12% to Tk2.43.
The net asset value of the bank increased to Tk3,738.88 crore, which was Tk3,573.85 crore in 2020.
In 2020, the bank paid 5% cash and 5% stock dividends to the shareholders.
But in 2021, it recommended a 10% stock dividend. The bank said the stock dividend was recommended to strengthen the capital base to comply with the regulatory requirements and to support the business growth.
