Uttara Bank profit slumps 59% in Apr-Jun

Uttara Bank reported a 59% decrease in its consolidated net profit for the April-June quarter of 2025, mainly attributed to the need to sustain higher provisions against non-performing loans.

The bank published the price sensitive statements for the first half of this year through the Dhaka Stock Exchange today (17 July).

Following the profit slump, its share price also dropped by 1.85% to close at Tk21.20.

During the second quarter, its consolidated earnings per share stood at Tk0.58, which was Tk1.42 during the period a year back.

Muhammad Khaled Bashar, company secretary of Uttara Bank, told The Business Standard, "Some of our disbursed loans became classified during the quarter. In addition, as per Bangladesh Bank guidelines, we had to increase our provisioning—particularly against SME loans. As a result, our profit declined."

However, bolstered by strong growth in the first quarter, the bank managed to limit the earnings decline to 9% by the end of the first half of this year. During the period, it reported consolidated earnings per share of Tk1.82, compared to Tk2 in the same period last year. 

Earlier, Uttara Bank paid a 35% dividend for the 2024 financial year, marking its highest payout in over a decade. The dividend comprises 17.50% cash and 17.50% stock.

The bank reported a consolidated net profit of Tk478 crore in 2024, a 51% increase compared to the previous year. Its consolidated earnings per share were Tk5.79, while its consolidated net asset value per share reached Tk32.07 by the end of 2024. 

Listed on the stock exchanges in 1984, Uttara Bank currently has a paid-up capital of Tk970 crore.

According to its June shareholding report, sponsors and directors hold 30.63% of the shares, institutional investors own 25.55%, foreign investors hold 0.90%, and the general public hold the remaining 42.92%.