Union Capital logs Tk42.50cr loss, skips dividend as NAV sinks deeper into negative

Union Capital Limited, a non-bank financial institution, has recommended no dividend for the financial year ended 31 December 2025, as the company continues to grapple with mounting losses and a deeply negative net asset value.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (20 May), the company posted a consolidated net loss after tax of approximately Tk42.50 crore for the year. 

Following the announcement, its share price slipped 2.08% to Tk4.70 on the premier bourse.

The company's consolidated earnings per share (EPS) for 2025 stood at negative Tk2.46 — an improvement from the negative Tk11.99 recorded in 2024. 

Management attributed the narrower loss primarily to reduced provision requirements for loans and advances, higher recoveries from written-off clients, and lower operating expenses through cost control measures.

Despite the improvement in EPS, the consolidated net asset value (NAV) per share deteriorated further to negative Tk65.49, from negative Tk63.02 a year earlier. 

The overall loss was largely driven by a decline in net interest income, investment income, and fee and commission earnings.

In the first quarter of 2026 (January–March), Union Capital reported a consolidated net loss after tax of Tk16.31 crore. Quarterly consolidated EPS fell sharply to negative Tk0.95, from negative Tk0.07 in the same period last year. The company said the decline was driven by lower interest income and reduced provision releases stemming from weaker recoveries against non-performing loans.

As of 31 March 2026, the consolidated NAV per share stood at negative Tk66.43, while net operating cash flow per share remained negative at Tk0.61.

The company has scheduled its Annual General Meeting for 29 July 2026, with the record date for entitlement set for 22 June, when shareholders will review the annual performance alongside other agenda items.