UCB declares no dividend for 2024

Business Desk :

United Commercial Bank (UCB) could not recommend any dividend for shareholders for the year ending 31 December 2024 due to a significant provision shortfall.

According to the bank’s disclosure, a sharp decline in profit and its failure to meet the required provision levels under Bangladesh Bank’s policy were the main reasons behind the decision.

In 2023, UCB had paid a 5 per cent cash and 5 per cent stock dividend to its shareholders.
As per central bank guidelines, banks are barred from declaring dividends if they fail to maintain adequate provisions against loans or have taken deferral facilities.

UCB has scheduled its 42nd annual general meeting for 31 July, with the record date set for 29 June.

According to the financial statement as of December 2024, the bank’s required provision against loans and advances stood at Tk6,055 crore, but it managed only Tk2,706 crore, leaving a shortfall of Tk3,345 crore.