Union Capital Ltd. has faced a stark financial downturn, transitioning from over a decade of profitability to persistent losses. In 2022, it recorded its highest-ever consolidated loss of Tk 206 crore, following a loss of Tk 138 crore in 2021. The first half of 2023 continued this trend with a loss of Tk103 crore, accumulating losses of Tk594 crore till June.
This decline is primarily attributed to reduced income from interest, investments, and brokerage commissions, falling by 42.56%, 60%, and 39.80%, respectively, compared to the previous year’s first half. Additionally, provisioning against defaulted loans surged by 37% to Tk74 crore by June 2023.
Union Capital’s EPS also declined, driven by decreasing interest income due to rising non-performing loans. Its consolidated loss per share stood at Tk11.95, which increased from Tk8.03 in 2021, and it decided not to pay dividends due to heavy losses.
Furthermore, its consolidated net asset value per share turned negative at Tk15.86, compared to a negative Tk3.91 in 2022. Sponsor directors currently hold 33% of the ownership, followed by institutional investors (20.97%) and general investors (46.03%).
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