United Commercial Bank PLC and its Subsidiaries
Independent Auditor's Report and
Audited Consolidated and Separate Financial Statements
For. the year ended 31 December 2024
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Independent Auditor's Report
To the Shareholders of United Commercial Bank PLC
Report on the Audit of the Consolidated and Separate Financial Statements
Qualified Opinion
We have audited the consolidated financial statements of United Commercial Bank PLC and its subsidiaries (the "Group's as well as the separate financial statements of United Commercial Bank PLC (the "Bank's, which comprise the consolidated and separate balance sheets as at 31 December 2024 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, except for the effects of the matters described in the "Basis for Qualified Opinion" section of our report, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true and fair view of the consolidated financial posltion of the Group and the separate financial position of the Bank as at 31 December 2024, and of its consolidated and separate financial performance and Its consolidated and separate cash flows for the year then ended In accordance with International Financial Reporting Standards (IFRSs) as explained in note no. 2.1.
Basis for Qualified Opinion
i@ As disclosed in note # 4.1 to the financial statements, the Bank has fixed deposits of Taka 155.48 crore in different Non-Bank Financial InStltutes (NBFIs) which became matured long ago but are doubtfu( of recovery. The provision requirement of the said FDRs Is Taka 155.48 crore, but the bank has not maintained any provision for those FDRs as at 31 December 2024, thus there is short of provision of Taka 155.48 crore.
iii) As disclosed in notes # 9 and 9.6 to the financial statements, the provision shortfall of other asses is Taka 391.27 crore which includes the impairment loss of UCB Fintech Company Limited, a subsidiary Company of United Commercial Bank PLC and commonly known as UPAY, for Taka 389.40 crore. The Bank holds 99.99°A of the shares of the Company. As on 31 December 2024, the Company has incurred cumulative loss of Taka
389.40 crore, but the Bank has not accounted for the impairment loss in its financial statements on solo basis.
However, Bangladesh Bank vide their letter # DOS(CAMS)1157/41(Dividend)/2025-311 dated 21 day 2025 has allowed the banI‹ to finalize its financial statements for the year ended 31 December 2024 without adjusting the total shortfall amount of Taka 3,896.26 crore as stated above.
2. i) As per section 13 (2) of the Bank Company Act 1991 (amended in 2023) and BRPD circular no.18 dated 21 December 2014 to fulfil the Basel-III requirement, the required capital as on 31 December 2024 at Tx. 6,358.78 crore against which the bank's recorded capital is Th. 5,385.90 crore. Tnus, the bank's reported capital shortfall is Tk.
972.87 crore as on the balance sheet date. If the shortfall in provision of Tk. 3,896.26 crore as stated in para 1 above is considered, the capital shortfall of the Bank would have been Tk 3,613.06 crore.
ii) As per Section 13(2) of the Bank Company Act 1991 (amended in 2023), BRPD Circular No. 35 dated 29 December 2010, and BRPD Circular No. 18 dated 21 December 2014 to fulfil the Basel-III requirement, the required Capital Adequacy Ratio (CRAR) of the Bank should have been 12.50/o (including buffer) of Risk Weighted Assets but the Bank's reported CRAR is 10.59% approximately. If there were no forbearance from Bangladesh Bank and the shortfalls in provisions mentioned in this audit report were considered, as on 31 December 2024, the aggregated loss of the bank would have been Tata 2,009.42 crore and CRAR would have been 5.40% on solo basis.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated ana Separate Financial Statements section of our report. We are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), guidelines issued by Bangladesh Bank, and rules and regulations issued by Bangladesh Securities and Exchange Commission (BSEC), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye-Laws. We believe that the audit evidence we nave obtained is sufficient and appropriate to provide a ba5iS for our qualified opinion.
Key audit matters are those matters that, in our professional judgment, were of most significanCe in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming oui-opinion thereon, and we do not provide a separate opinion on these matters. Except for the matters desci ibed in the Basis for Qualified Opinion section, we have determined the matters described below to he the I‹ey audit matters to be communicated in our report.
Description of key audit matters Our response to key auclit matters | |
1. Recognition of interest income from loans and advances | |
Refer to note no. 7 and 21 to the consolidated and separate financial statements | |
Recognition of interest income has significant and wide influence on financial statements. Recognition and measurement of interest income has involvement of complex IT environment. | We tested the design and operating effectiveness of key controls over recognition and measurement of interest from loans and advances. We have performed test of operating effectiveness on automated control n place to measure and recognize interest income. |
We have identified recognition of interest income from loans and advances as a key audit matter because tnis is one of the key performance indicators of the Bank and therefore there is an inherent risk of fraud and error in recognition of interest by management to meet specific targets or expectations. At the year ended 2024, the Group and the Bank reported total gross interest income from loans and advances of BDT 55,652 million (January 2023 to December 2023: BDT 37,414 million) and BDT 55,437 million (January 2023 to December 2023: BDT 36,768 million) respectively. | We have also performed substantive procedure to check whether interest income is recognized completely and accurately. We have assessed the appropriatenes5 and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. |
2. Impairment assessment of unquoted shares | |
Refer to note no. 6.3(C) to the consolidated and separate financial statements and para 1.iii of our basis for adverse opinion section | |
In the absence of quoted price in an active We assessed the process and controls put in market, the fair value of unquoted shares and place by the Bank to ensure all major securities, especially any impairment is investment decisions are undertaken through calculated using valuation techniques which a proper due diligence process. may take into consideration direct or indirect | |
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Description of key audit matters | Our response to key audit matters |
unobservable market data and hence requires an elevated level of judgement and assumption. | We have tested a sample of investment valuation as at 31 December 2024 and compared our results to the recorded value. |
Due to high level of judgment and assumption involved in evaluating the impairment assessment of unquoted shares, we considered this to be a key audit matter. | Finally, we have assessed the appropi iateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. The impairment assessment and recognition was properly done for all shares except for the impairment loss of UCB Fintech Company Limited, commonly known as UPAY is a subsidiary Company of United Commercial Banl‹ PLC. |
3. Valuation of treasury bills and treasury bonds | |
Refer to note no. 6a and 6.1 to the consolidated and separate financial statements | |
Tne classification and measurement of treasury bills (T-Bills) and treasury bonds (T-Bonds) require judgment and complex estimates. | We assessed the processes and controls put in place by the Bank to identify and confirm the existence of treasury bills and treasury bonds. |
In the absence of a quoted price in an active market, tne fair value of T-Bills and T-Bonds is determined using complex valuation techniques which may take into consideration direct or indirect unobservable market data and complex pricing models which require an elevated level of judgment. | We have obtained an understanding, evaluated tne design and tested the operating effectiveness of the key controls over the treasury bills and treasury bonds valuation processes, including controls over market data inputs into valuation models, model governance, and valuation adjustments. |
We have tested a sample of the valuation models and the inputs used in those models, using a varied of techniques, including comparing inputs to available market data. | |
Finally, we have assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. | |
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Description of key audit matters | Our response to key audit matters |
4. Deferred tax assets | |
Refer to note no. 9.2 to the consolidated and separate financial statements | |
As at 31 December 2024 the Group and the Bank reported net deferred tax assets of BDT 8,742 million (December 2023: BDT 5,965 million) and BDT 8,740 million (December 2023: BDT 5,964 million} respectively. | We obtained an understanding, evaluated the design and tested the operational effectiveness of the Bank's key controls over the iecognitton and measurement of oefet red tax assets and the assumptions used in estimating the Group and the Bank's future taxable income. We have assessed the completeness and accuracy of the data used for the estimations of future taxable income. We have involved tax specialist to assess key assumptions, controls, recognition and measurement of deferred tax assets. Finally, we haveassessed the appropriateness and presentation of disclosures against IAS 12: Income Taxes. |
Significant judgment is required in relation to measurement of deferred tax assets as their recoverab!lity is dependent on forecasts of future profitability over a number of years. | |
5. Legal and regulatory matter | |
We focused on this area because the Bank and its subsidiaries (the "Group") operates in a legal and regulatory environment that is exposed to significant litigation and similar risks arising from disputes and regulatory proceedings. Such matters are subject to many uncertainties and the outcome may be difficult to predict. | We obtained an understanding, evaluated the design and tested the operational effectiveness of the Group and Bank's key controls over the legal provision and contingency processes. We enquired those charged with governance to obtain their views on the status of all significant litigation and regulatory matters. We enquired of the Group and the Bank's internal legal counsel for all significant litigation and regulatory matters and inspected internal notes and reports. We also received formal confirmations from external counsel. We assessed the methodologies on which the provision amounts are based, recalculated the provisions, and tested the completeness and accuracy of tne underlying information. |
These uncertainties inherently affect the amount and timing of potential outflows with respect to the provisions which have been established and other contingent liabilities. | |
Overall, the legal provision represents tne group's best estimation for existing legal matters that have a probable and estimable impact on the Group's financial position. | |
We also assessed the Group and the Bank's provisions and contingent liabilities disclosure. | |
b. IT systems and controls
Our audit procedures have focused on IT systems and controls due to the pervasive nature and complexity of the IT environment, the large volume of transactions processed in numerous locations daily and the reliance on autornated and IT dependent manual controls.
Our areas of audit focus included master data management, user access management and developer access to the production environment and changes to the IT environment. Among others, these are key to ensuring operating effectiveness of IT dependent application-based controls.
Our response to key audit matters
We tested the design and operating effectiveness of the Group and the Bank's IT access controls over the information systems that are critical to financial reporting. We test:ed IT general controls (logical access, change'5 management and aspects of IT operational controls). This included testing that requests for access to systems were appropriately reviewed and authorized.
We tested the Group and the Bank's periodic review of access rights. We also inspected requests of changes to systems for appropriate approval and authorization. We considered the control environment relating to various interfaces, configuration and other application layer controls identified as key to our audit,
Where deficiencies were identified, we tested compensating controls or performed alternate procedures. In addition, we understood where relevant, changes were made to the IT landscape during the audit period and tested those changes that had a significant impact on financial reporting.
Other Matter
In accordance with IAS 24 Related Party Disclosures, tne bank is required to disclose information regarding related party relationships, transactions, and outstanding balances. The management nas stated in the financial statements that there are no related party disclosures other than those presented in the accompanying notes no 49.4.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the annual report otner than the consolidated and separate financial statements and our auditor's report thereon. The annual report is expected to be made available to us after the date of this auditor's report.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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In connection with our audit of the consolidated and separate financial statements, our responsibili is to read the other information identified above when it becomes available and, in doing so, consider whether tne other information is materially inconsistent with the consolidatecl and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, on the otner informatioil obtained prior to the date of I:his audit report, we conclude that there is a material misstatement of this other information, we are requii-ed to report that fact. We have homing to report in this regard.
Responsibilities of Management and those Charged with Governance for the Consolidated and Separate Financial Statements and Internal Controls
Manasement is responsible for the preparation and fair presentation of the consolidated financial statements of tne Group and also separate Fnancial statements of the Bank in accordance with IFRSs as explained in note no. 2.1, and for such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 (as amended up to date) and the Bangladesh Bank regulations require the Management to ensure effective internal audit, internal control and risk management functions of the Group and the Bank. Tne management is also required to make a self-as5essment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
In preparing tne consolidated and separate financial statements, management is responsible for assessing the Group's and the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's and the Bank's financial reporting process.
Auditor's Responsibilities for the Audit of the consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional jud9ement and maintain professional skepticism throughout tne audit. We also:
Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence tnat !s sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatem L .
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resulting from fraud is higner than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control i-elevant to the audit in order to design audit procedures tnat are appropriate in the circumstances.
Evaluate the appropriateness ol° accounting policies used and the i easonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities witnin the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control tnat we identify during our audit.
We also provide those charged witn governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters which have been duly described in the basis for qualified opinion and tne key audit matter section. We describe these matters in our auditor's repair unless tax or regulation precludes public disclosure about tne matter or when, in extremely rare circumstances, we determine that a matter should not be COlTtMUnicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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In accordance with the Companies Act, 1994, the Secut-ities and Exchange Rules, 2020, the Bank Company Act, 1991 (as amended up to date) and the rules and i-egulations issued by Bangladesh Bank, we also report that:
we have obtained ali the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due vei"ification thereof;
to the extent noted during the cout-se of our audit worI‹ performed on the basis stated under the Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements section in forming tne above opinion on the consolidated financial statements of the Group and the separate financial statements of the Banl‹ and considering the reports of tne Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management's Responsibility for the financial statements and internal control:internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in the financial statements appeared to be materially adeouate;
nothing has come to our attention regarding material instances of forgery or irregulari or administrative error and exception or anything detrimental committed by employees of the Group and the Bank;
consolidated financial statements of the Bank include 05 (five) subsidiaries, namely UCB Stock Brokerage Limited, UCB Investment Limited, UCB Asset Management Limited, UCB Fintech Company Limited and UCB Exchange (SG) PTE Ltd. which reflect total assets of BDT 11,574 million, BDT 1,477 million, BDT 1,136 million, BDT 2,299 million and BDT 06 million respectively as at 31 December 2024 and total revenue of BDT 852 million, BDT 166 million, BDT 64 million, BDT 487 million and nil respectively for the year ended 2024.
in our opinion, proper books of account as required by law nave been kept by tne Group and the Bank so far as it appeared from our examination of those booKs;
the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;
the Consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the report are in agreement with the books of account and returns;
the expenditures incurred were for the purpose of the Group's and the Bank's business for the period;
tne consolidated financial statements of the Group and the separate financial statements of tne Bank have been drawn up in conformity with prevailing rules, regulations and accounting standards as explained in notes 2,10.51 and 2.1.I as well as related guidance issued by Bangladesh Bank;
provisions have been made for loans and advances and otner assets which are in our opinion, doubtful of recovery, as per Bangladesh Banu Vide letter no. DBI-4/7007/2025-635 dated 27 April 2025 (refer to the matter as disclosed in Basis for Qualified Opinion para no. 1(i);
tne information and explanations required by us have been received and found satisfactory;
(xI)
we have reviewed over 80% of the risk-weighted assets of the Bank and spent over 7,520 person hours; and
(xii) Capital to RisK weighted Assets Ratio (CRAR) has been maintained during the period based on provisions allowed by Bangladesh Bank against the requirement as explained in notes 13.1 and 14.6 as per Bangladesh Bank Vide letter no. DBI-4/7007/2025-635 dated 27 April 2025 (refer to the matter as disclosed in Basis for Qualified Opinion para no. 2).
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ACNABIN, Chartered Accountants FRC Registration# CAF 001 012
Abu Sayed Mohammed Nayeem, FCA Partner
ICAB Enrollment Number# 0353
10
UNITED COMNERC1AL BANK PLC
Consolidated Balance Sheet
As at 31 December 2034
PROPERY1ES & ASSETS | |||||||
Cash | 3 | 45,443,G34,157 | 3G,18G,600,376 | ||||
Cash in hand (including foreign r‹ rrencies) | 12,493,112,603 | 8,600,45,648 | |||||
Balance with Bangladesh Bank & its agent bank(s) | 33,0D0,521,551 | 27,586,149,720 | |||||
(including foreign currencies) | |||||||
Balance with other banks & financial institutions | 4 | 19,013,Z03,637 | Z2,45S,110,493 | ||||
In Bangladesh | 12 53 6 D 4 | 5,SSG, 154, 273 | |||||
Outside Bangladesh | 6,159,G23,190 | 16,898,95G,220 | |||||
No›1ey aC call on short notice | 2,500,OD0,000 | ||||||
Investments | 6 | 90,756,764,423 | 8S,G fi1,l69,843 | ||||
Government | 7S,913,616, 797 | 70,067,335,372 | |||||
Others | 14,843,1€7,6Z6 | 15,543,834,47t | |||||
Loans and Advances | 57B,130,846,373 | 510,710,023,606 | |||||
Loans, Cash Credits, OverdraRs etc. | 568,147,161,936 | 500,982,069,097 | |||||
Bills purchased and discounted | 9,983,6B4,437 | 9,727,954,509 | |||||
Fixed assets including premises, furniture & fixture | 19,567,070,636 | 19,583,158,OSB | |||||
Other assets | 16,76B,471,179 | 1Z,012,610,SOB | |||||
Non-banking assets | 10 | 3,3Z6,0O0 | |||||
Total Assets | 772,183,426,405_ | 687,558,672,8B4 | |||||
LIABILITIES AND CAPITAL | |||||||
Liabilities | |||||||
Borrowings 'from other banks, financial institutions | |||||||
and agents | 11 | 81,142,166,248 | ¥6,590,306,142 | ||||
Deposits and other accounts | 12 | S52,225,706,273 | 511,392,706,168 | ||||
Current accounts & other accounts | 192 63 ,06 | 126,365,845,416 | |||||
Bills Payable | 6,b26,968,382 | 8,344,605,942 | |||||
'5av‹nqs Bank Deposits | 93,476,409,174 | 94,572,958,191 | |||||
Fixed Deposits | 307,898,2B4,188 | 243,315,320,401 | |||||
Bearer Certificates of DeposTfs | |||||||
Other Deposlts | |||||||
Other Liabilities 13 | |||||||
Total Liabilities | 732,186,309,255 | 645,980,154,72B | |||||
Capital / Shareholders' Equity | |||||||
Paid up Capital | 14 | 15,503,758,980 ' | 14,765,484,750 | ||||
Share Premium | 14.3 | t,454,976,750 | 1,454,976,750 | ||||
Statutory Reserve | 15 | is,o28,73g,273 ' | 15,802,731,273 | ||||
General Reserve | 16 | 26,577,961 | 26,577,961 | ||||
Other Reserve | 2,767,535,661 | 3,D97,273,B97 | |||||
Retained Earnings | 18 | 4,915,528,335 | 6,431,473,339 | ||||
ToCaI Shareholders' Equity | 39,997,116,960 | 41,578,517,970 | |||||
Non controlling Interest | 19D | 186 | |||||
Total Shareholders' Equity with non-controlling interest | 39,997,117,150 | 41,578,518,156 | |||||
Total Liabilities and Shareholders' Equity | 772,183,426,405 | 687,55B,672,8Bé | |||||
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Off Balance Sheet Items Contingent Liabilities | ||||
250,123,379,742 | 281,952,Z12,043 | |||
Acceptances & Endorsements | 19.1 | 105,263,752,167 | t21,7t7,01'1,733 | |
Lettei s of Guarantee | 19.2 | 60,9I8,919,0B7 | 65,230,862,378 | |
Irrevocable Letters of Credit | 19.3 | 59,160,06D,971 | 73,731,069,769 | |
Bills for Collection | 19.4 | Z4,7B0,647,517 | 21,Z73,365,J63 | |
Other Contingent Liab(llties | ||||
Other Commitments | 9,723,915,200 | |||
Documentary ci edit and short term trade related transactions Fonvard asseLs purchased and forward deposits placed | 10,736,246,402 | 9,723,925,200 | ||
Undrawn note issuance and revolving underwriting facilities Undrawn formal standby facilities, credit lines and other commitments | ||||
Total off-Balance Sheet items Including contingent liabilities | 260,B59/6Z6,144 | 291,676/237,243 | ||
The annexed notes from 01 to S0 form an Integral part of thes financial statements.
I lanaging Director & CEO D ector
6CtOF
This is the Consolidated Balance Sheet referred to in our separate report of even date.
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ACNABIN, Chartered ccountanLs FRC Registration# CAF-001-012
Abu Sayed Mohammed Nayeem, FC1
Partner
ICAB Enrollment Number# 0353
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UNITED COMMERCEAL BANK PLC
Consolidated Profit and Loss Account For the year endecl 31 December 2024
Interestlncome Inferesf paid on deposits and borrowlnqs etc. | 21 22 | 56,329,594,149 1 35,174,181,758 | 38,S27,432,24 7 22, 238,997, 029 | ||
Net Interest Income | 21,155,762,391 | 16,288,435,218 | |||
Investment income | 23 | 7,59t,?75,4C0 | 6,004,840,458 | ||
ConJnJission, exchange ated broken age | 24 | 9,005,53B,512 | g,376,878,.S50 | ||
Othei Operating Income | 25 | 373,79I2,700 | 3S0,098,4?f | ||
Total Operating Income (A) | |||||
Salary and allowances | 26 | ||||
Rent, taxes, insurance, electricity etc. | 27 | 1,626,418,570 | t,454,739,94D | ||
Legal expenses | 28 | 170,6BZ,614 | 99,486,632 | ||
Pos(age, stamps, telecommunications etc. | 29 | 241,811,0B9 | 238,779.237 | ||
Stationery, pi inting, advertisements erc. | 30 | ' | 2, 137,940,531 | 2,J28,55Z,381 | |
Chief Executive's salary and fees | 31 | 17,695,000 | 15,435,484 | ||
Directors' fees | 32 | 6,013,571 | 4,057,995 | ||
Auclitors' fees | 33 | 1,778,833 | 1,62500 | ||
Depreciation and repair of banks assets | 34 | 2,690,8DS,305 | 2,556,626,891 | ||
Other expenses | 35 | 6/ 3 *r* 3y 617 | 5,445,974,082 | ||
Total Operating Expanses (e) | 2Z,338,550,B85 | Z1,426,2B8,B23 | |||
Profit before provision (C) = (A-B) t9,593,963,854 | |||||
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Provision foi Loans & Advances | 36 | 11,852,866,574 | 3,792,688,396 | |
PrQviston fOr dimtnutton in value of Investments | 37 | 841,677,725 | 52,461,975 | |
Other provisions | 3B | 219,505,616 | 711,543,580 | |
Total PiovTsion (D) | l2,914,049,Q1& | 4,S56,693,951 | ||
Total Profit before Income Tsxes (C - D) I,874,174,26Z 5,0Z7,269,903 | ||||
Provision for Taxation | 3g | 1,794,ll2,818 | 2,839,601,616 | |
Current tax | 4,£70, 211,087 | 3,339,864,344 | ||
Deferi ed tax expenses(income) | (2,776, 098,269) | (500,262,728) | ||
Net Profit after Taxation | 80,061,445 | 2,197,668,2B7 | ||
Appropriations | ||||
Statutory Reserve | 38,422,834 | |||
Start-Up Fund | 26,850,863 | |||
Coupon payment on Perpetual BOnd | 367,500,000 | |||
Retained Surplus/(Deficit) 1,764,B94,591 2,197. 668.287 | ||||
Attributable to Equify holders' of the Bank | tszs,sz ,7sg | ›,76 ,8s ,Nos | ||
Non controlling interest | 190 | 186 | ||
(539,524,598) | 1,7G4,B94,591 | |||
Earnings Per Share (EPS) | 40 | 0.05 | 1.45 | |
The annexed notes 01 to 50 farm an integi al pal t of these fi@ncial statements.
Managing Director & CEO
Director
Dii'ector
rector
This is the Consolidated Profit and Loss Account referi ed to In our separate report of even date.
ACNABSN, Charter d Accountants
FRC Registration# CAF-001-012
Dhaka,
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Abu Sayed ohammed Nayeem, FCA Partner
ICAB Enrollment Number# 0353
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UNITED COMf4ERC7AL BANK PLC
Consolidated StaEement of Changes in Equij:y For the year ended 31 December 2024
AmounL in 6DT
P'aid up | Share | Statutory | General | Assecs Revaluation Resen'e | tnvescmezr Revaluation Reserve | Non- I-ore gn currency CoYttzolling b anstabon Interest gain/ [toss) | Rel:ained ' Earnings Total | |||||||
BaIanceasat0l3bnua‹v2OZ° 14, y63,4u4, yS0 l,•54,97b,7s0 15,8O2 73 ,273 26,577,961 2,534,101, S59 918,083,7fo 186 1145088,558 6, .s73 339 _ 41,3 /8,Sta,i5 Z Su]us/deCicto'nrevzxio"nof ‹mstmnts (37,730,3) ' - - (337,730,208) Currency kanslatah diPerence (OBU) _ - - - - 7,992,07? 7,952,73 Net Profit for the year Transferred to •cacurry .serve _ - 26,008,000 " " - """ " " "" _ - " f26,008,000) CaSh D‹vmend (l8,27R,2]8] OockDivdend 73d,279,2j0 ' "' _ _ _ (3,274.250) w'upOn PaymentFen>ewalBond (587, 00,000)' (Sg7,500,000) | ||||||||||||||
Balance as aL 31 oeoember z0z« | 1s,SOZ,zSB,960 I 1,454,976 750 | 10,828,739,2Z3 | 26,•i77,96J | 2 534,LO1,5S9 I aO,351,462 j t90 I 153,080,640 1 4, 15,5Z8,3Z5 I 3'2 997,1L7, 15Q | |||||||||||
far the year ended 3L December 2023
Arzic Mnt in BDT
Pa‹d up Capital | 5haLe Premium | Statutory Reserve | General Reserve | assets lnvesonent Reyaluabon Revaluation Reserve Rese•-ve | non- Controlling ¥nLerest | foreign currency translaLion sain/flossJ | Retained | ||||||||||||
baiance as at 01 January 202 i4,062,366.430 l,fl5fl,9F6,z50 18, yfiq,308,439_ 26,S7T,961 2.S34,l0l,55° t28,060,S3Z 1 174: 134,906,899 6.U72,8 ,38o 40j78j1qI35 5umplus/deCit on nevatuaoon ot invescmene Curencv#ndahondñteremcef0BUi Net Profit for the year ' - - I - _ - 2,l7'O I;4Z5 Tanfeved tosaitorv'reseoe ' - ' 38.*22.8Ze - (38,422,834} d " """ $ Di'vioe d Coupon RaVrneflt Perpetual Bent - " ' - - - , f3S7,S00,000) (367,500,000) Non Control['ns Interest - - - - - - L2 - f2 | |||||||||||||||||||
Balance as at 31 December Z9Z3 |_ 14,76S,48A,y5O I t,4s4,976,750 I 15,802 731,273 I 2 ,6577,961 I 2,S34,101,5S9 | g18 08* 7?O I t86 I l45.08s,568 I 6,431,4?3 339 I IL, 5T8,5I8, 15T | ||||||||||||||||||
The annexed notes from 01 to 50 form an inregral part or fhese financial statements.
Consolidated Cash Flow Statement
For the year ended Z1 December 2024
Notes | 2024 Yaka | 2023 Tata |
A. Cash flows fxom operating activities | ||||
Receipts of Interest | 63,967,566,565 | 44,338,215,812 | ||
Payn enfs of Interest | (27,352,621,039) | (21,016,017,221) | ||
Receipts of Dividend | 3Z9,838,753 | 231,790,122 | ||
Recei|›t of Fees & Commission | 7,770,G45,799 | 6,809,110,517 | ||
Recoveries from previously written off loans and advances | 369,011,609 | 409,590,871 | ||
Payments to employees | (10,157,248,369) | (9,347,373,468) | ||
Payments to suppliers | (4,301,9O9,3B7} | (5,597,917,983) | ||
Payments for Income Tax | (2,955,963,224) | (3,714,962,839) | ||
Receipts from other operating activities | (774,520,100) I | 25S,SS7,18S | ||
Payments for other operating activities | (5,986,950,896) | {5,131,534,477) | ||
Operating profit before changes in oparating assets and liabilities | 20,907,796,711 | 7,Z36,458,519 | ||
Increase/Decrease in operating assets and liabilities | ||||
Statutory Deposits | (6,d21,159,996) | 4,381 774,414) | ||
Purchase/Sales of trading Securitles | 713,619,478 | (467,176,700) | ||
Loans and advances to Customers | (65,497,893,918) | (39,925,103,990) i | ||
Other asseLs | (3,478,D97,639) | (1g2,765,341)' | ||
Deposit from banks | (3,237,348,162) | (1,312,414,303): | ||
Deposit from customers | 43,97Z,342,313 | 87,043,023,616 | ||
Other Liabilities | 713 3D7 067 | 822 B63 224 | ||
835 229 857 | 41 596 652 092 | |||
Net cash {used In)/flows from operating activities (A) | 927 4Z3 146 | 4B,B33 110 611 | ||
B. Cash flows from investing activities | ||||
Net (Purchase)/Sale of Securities | (163,935,183) | 409,051,366 | ||
Net Purchase of Property, Plant & Equipment | (1,388,833,386) | (3,811,226,171) | ||
Net Cash used in investing activities {B) (1,552,768,569) (3,402,174,80B) | ||||
c. Cash flows from financing activities | ||||
Receipt/(Payment) from borrowing | 11,399,096,746 | (35,215,219,006) | ||
Receipt/(Payment) of Sub-Ordinated Bond | 1,222,800,000 | (1,000,000,000) | ||
Payment of cash divJdend | (738,274,238) ' | {703,118,322) | ||
Coupon payment on perpetual bond | (587,500,000) | (367,500,000) | ||
Net carh from financing activities {C} 21,296,222,S09 {37,2BS,837,326) | ||||
D. Net Increase/(Decrease) in cash (A+B+C) | 6,815,920,794 | 8,145,098,477 | |||
E. Effects of the changes of exchange rate on cash and cash equivalents* | 1,499,6@,132 | 1,588,182,965 | |||
F. Cash and Cash equivalents at beginning of the year | 58,648,938,569 | 48,915,657,127 | |||
G. Cash and cash equivalents at the end of the year tD+E4F) | 66,964,463,494 | 58,64B,938,569 | |||
Consolidated Cash and cash Equivalents at end of the year | |||||
Cash in hand (including foreign currencies) | 3 | | | t2,443,t12,C03 | 8,600,450,648 | |
ealance with Bangladesh bank and its agent hank | 3 | 33,000,521,554 | 27,586,149,728 | ||
Balance with other banks & financial institution | 4 | 19,013,303,637 | 22,455,110,493 | ||
honey at call on short notice | 5 | 2,500,000,000 | |||
Prize Bond | 7,525,700 | 7,227,700 | |||
66,9g4,463,494 | 58,648,938,569 |
The annexed notes from 01 to 50 form an integral part of these financial slatements.
.. -..
" i**'
15
*" bakertilty I!Li ¿.'itii« I.1Fr'nEn
UNITED COI4NERCIAL BANK PLC
Balance Sheet
As at 31 December 20Zq
Notes
31.12,2024
Taka
31.E2.2023
Taka
PROPERTIES 8 ASSETS
Cash
3 45,443,390,740 3b,186,Z05,779
Cash in hnnñ (including f0reign currencies) Balaiice with Banglaclesh Bank & its agent hank(s) (including foreign curi"encies)
Balance with other banks & financial institutions
In Bangladesh Outside sang!adesh
fdoney at cnll on short noEice
12,442,869, 186
33,000,521,?54
4 12,724,645,465
11,565,D22,275
6,159,623,190
2,500,000,000
8,60D,156,D51
27,586,119,728
21,177,38l,033
Investmetits
6 87,B51,387,227 8Z,863,727,370
Government Otheis
Loans and Advances
Loans, Cash Credits, Overdrafts etc. Bills purchased and discounted
Fixed assets including premises, furniture & fixture Other assets
75,068,296,tS0
12,703,091,D77
7 572,82B,B69,2B7
S6Z,8'JS,184,8S0 9,983,684,437
8 17,056,58O,533
9 25,371,267,219
69,381,568,462
13,479,158,908
505,969,487,028
6 ,5 ,5 9
9,727,959,509
17,016,419,B21
21,799,0B9,941
Non-banking assets
10 3,336,OOO
Total Assets
LIABILITIES ANDCAPITAL
Liabilities
Borrowings from other L›anks, financial institutions and agezifs
Deposits and other accounts Current accounts & ofher accounts Bills Payable
76B,779,476,471
NJ 79,7B6,237,6D1
106,182,196,050 IZ8,367,823,033
6,626,96B,3g2 i) 8,344,605,942
12 S54,21S, 267, 25G
1 10 7
6S,271, 763,944
S13,394,6B3,785
Savings Bank Deposits | 93,476,409,174 | 94,572,958,191 |
Eixe Deposits | 307,89B,284,188 !) | 243,315,320,401 |
Other Deposits | 40,D31,409,462 | 38,793,976,218 |
Other Liabilities Total Liabilities
63,501,440,259
726,98B,654,3B1 g42,167,8B7,9B8
Paid up Capil:al | £4 | 15,5D3,75B,980 | 11,7âS,484,750 |
Share Pi emium | 14.3 | 'r**//976y750 | 1,454,976,750 |
Statutory Reserve | 15 | 15,730,183,055 | 15,730,183,055 |
General lteserve | 16 | 26,577,961 | 26,577,961 |
Other Reserve | 17 | 2,767,663,734 | 3,D97,316,397 |
Capital / Shareholders' Equity
Itetained Earnings 18 6,307,661,613 7,769,983,871
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
4I,79O,822,O93
7 47
42,844,522,984
6B5,012,410,972
J6
Off Balance Sheet Items | ||||
Contingent Liabilities | 250,123,379,742 | 2B1,952,312,043 | ||
Acceptances & Endorsements | 19.1 | 10 6 52 167 | 1 1 7 7 014 7 | |
Letters oF Guarantee | 19.2 | 60,918,919,0B7 | 65,230,B62,378 | |
Irrevocable Lefters of Credit | 19.3 | 59,160,060,971 | 73,731,069,769 | |
Bills for Collection Other Contingent Liabilities | 19.4 | 24,780,647,517 | 21,273,365,163 | |
Other Commttmens | 19.5 | 10,736,246,402 | 9,723,925,200 | |
Documentary credit and short term trade related transacdons Forward assets purchased and forward deposits placed | 10,736, 246,402 | 9,723,925,Z00 | ||
Undrawn note issuance and revolving underwrltlng facllitles | ||||
Undrawn formal standby facilities, credit Ilnes and other commitments | ||||
Total Off-Balance Sheet Irems Including contingent Ilabillttes | 1s | zao,sss,szg,144 2 | ||
The annexed notes From 01 to 50 form an Integral part of these financial statements.
i'•fana9in9 Director & CEO
TNs is the Balance Sheet referred to in our separate report of even date.
Ohaka,
bakertitty
ACNAB7N, Cha ered Accountants
FRC Reglstration# CAF-00s-0:t2
Abu Sayed Mohammed Naycem, FCA
Partner
ICAB Enrollment Number# 0353
c*c. z s I s I I I › s › as ‹ s! t › 1
17
UNITED COMI4ERCIAL BANK PLC
Profit and Loss Account
For the year ended 31 December 2024
Interest paid on depOSitS ancl borrowing* etc.
Net Interest Encome
hvestment Income
Commission, exchange and bf okcrage
Other 0t›erating Income
Total Operating Income (A) Salary and allowances
Rent, taxes, insurerce, electi icily et«.
Legal expenses
21
56,114,£S8,916
3S,2S7, 762,623
37,881,518,594
2"149,750317
22
20,B56,896,293 15,731,768,277
23 7,438,953,056 5,071,930,074
24 7,O26,S24,617 7,38S,221,/20
25 296,412,832 239,764, G76
36,469,186, 798 29, 228,684,747
26 9,372,438,905 g,539,916,422
27 1,G01,796,023 | 1,411,743,403
28 159,313,658 it 90,864,36d
Postage, stamps, telecommunications etc. Stationery, printing, advertisements etc. Chief Executive's salary and fees Directo›'s' fees
Auditors' fees .
29 223,449,513
30 2,074,052,715
31 T7,G95,000
32 5,189,971
33 1,380,D00
221,997,217
Z,242,879,526 1G,433,S81
3,t78,349
1, f50,00D
Depreciation and repair of banks assets
Other expenses
ToCaI Operating Expenses (e)
Profit before provision (C) = (A-B) Provision for Loans & Advances
34 2,517,600,162 2,448,805,449
35 5,418,376,644 4,525,991,100
21,391,292,591 19,502,964,355
15,077,894,207 9,725,720,392
36 t1, 5D,515, 1 3,775,539,844
Provision for dlmlnution in value of investments Other provisions
37 862,483,227
3B 219,505,616
61,249,230
711,593,580
Total Provision (D)
Total Profit before Income taxes (C-D) Provision for Taxatien
Current tax expense
Deferred tax expense/(income) Net Profit arter Taxation Appropriations
Statutory Reserve Start-Up Fund CSR Fund
Coupon payment on perpetual bond Retained Surplus/(Deficit)
12,932,504,359 4,548,332,654
2,145,389,84B 5,177,3B7,73B
39 1,537,585,596 2,492,301,451
"4,312,972,0D8 2,986,535,476
(2,775,386,412)i (494,234,025) t
607,804,252 2,685,086,287
6,078,043 26,850,863
587,500,000 367,500,000
14,226,209 2,290,735,424
607,804,252 2,685,086,287 Earnings Per Share (EPS) 40The annexed notes from 01 to 50 for m an integral part of these F dncial statements.
Managing Director & CEO DirectorThis is the Profit and Loss Account referred to In oui separate i eport of even date. Dhal‹a,
0.40 1.77
Director *rector
ACNABIN, Chartered ccouiltants FRC Registration// CAF-001-0t2
*" bakertitly
' I ^.''f 7T1I‹ ''1 I. f-J!I I•'
Abu Sayeg Nohammed Nayeem, FCA
Partner
ICAB Enra11ment Nuinber# 0353
»c- ts I›› ›‹ , s ›*s‹ s s s › ›
1 8
UNITED CDfdMERCIAL BANK PLC
Statement of Change in Equil:y Fdr the year ended 31 December 2024
Amounc irt BDT
Paid up Capital | Share Premium | Staowoxy Reserve | Genere Reserve | AssesRrvatuation Reserve | Investment Revaluation Reserve | Foreign currency oanslaDon gain/(IosS) | Retained Total I quity Earnings | ||||
8alanceas at 01 January 202a 14,7ñS48@,7S0 , 1,4S4,976,750 | 1S,730,183,OSS | ' | 26,577,961_ | _ 2,539,101,559 | 4T8,03,770 | t45,131,268 | 7,769,93,B7 | 2844_,522084 | |||
Net deficit on revaluation of investment - I Currency transiaron différences | - | - | - | (337,730,308 | - | - | (337,730,s08, 8,077,445 | ||||
Net profit I'or ee peñod | - | - | 601, 26,209 | 601,726,209 | |||||||
Cash Oivoend | - | - | - | (73a,274,238) | (7*8,27R,23B, | ||||||
Stock Dividend _ _ _ 738.274,230 | - | (738,274,230) | |||||||||
Coupon Payment of Perpetual Bond | (567,500,000) | (587,500,000 | |||||||||
Balance as at 31 December 3024 | U,5O3.756,980 | 1,4S4.976,750 | 15,730,183,055 | 26,577,961 | 2,534,1O1,559 | 153,208,713 | l | 6,3O7,661,6i3 | 41,790,822.093 | ||
For the year ended 31 December 2023
Amooot irt gDT
Paid up Capital | Share Premium | Statutory Reserve | General Reserve | RmrMuadon Reserve | 3nVtSYfttBnt Revaluation Reserve | Foregn Currency | Returned Earnings | |||||||
Balance as at 01 January 207.3 | 14,062,366,430 | 1,454,976,750 | 15,730,1 | 3,0g55 | 26,577,96i | 2,534,i0l,559 | 128,060,537 134,906,900 _ 6,885,485,076 ' 0.9»6,659,267 | |||||||
Net Surplus on reva lpqti n of investment:S_ | 290,023,233 - _ 390,023,233 | |||||||||||||
fi?%T.Ffi.? @.!!é^.+ifferer<> Set profit for the year | 10,224,368 - '0,224,368 2,S56.235,4Z4 2,658,23S,ñ2e | |||||||||||||
Cash Dividend Smk Dividend | 703,1i8,320 | (703,118,32) | ||||||||||||
Coupon Pament of Perpetual Bond | •" | i | - | - | - "(367,500,000) {367,500,000 | |||||||||
Balance as at 31 December 2023 | 14,765,484,750 | 1,A54,976,?50 | 15,73O,1g3 OSS | 26.577,961 | Z,534,1O1,5S9 ] | 41B,083,770 | 14S,131,Z68 | 7,769,983,871 | 42,84-4,522,984 | |||||
The annexed notes from Of e 50 form an integral part of these financial statements.
UNITED CONMERCEAL BANK PLC
Cash Flow Statement
for the year ended 31 Decemfjar 3024
Paymenl:s of Interest
Receipts of Dlvidend
Receipt of Fees & Commission
Recoveries from previously written off loans and advances
Payments to employees Payments to suppliers Payments for income Tax
Receipts from other operating activities Payment for other operating activities
Operating profit bafora changes in operating assets and liabilities
Increase/Decrease in operating assets and liabilities Statutory Deposit
Net Sale/(Purchase)of trading securities Loans and advances to customers
Other Assets Deposit from Banks
Oeposft from customers Other (IabTlitles
Net cash (uasd In)/floW from operating activities (A)
B. Cash flows from investing activities Net (Purchase)/5aIe of Securities
Net Purchase of Property, Plant & Equlpment
63,223,029,042
(27,111,596,805)'
293,308,737
6,427,325,644
369,O4J,6D9
9,z9o, tz3,gos)!
(3,274,395,400)
(2,687,359,301),
(806,907,709) (5,885,117.S03)'
(6,021,1S9,9P6}
B40,193,258 (66,B59,382,258)
(3,572,177,279)
(3,237,348,162): 44,057,93J,633
748 794 396
48 408
997
{4,380,922,450)
(36S,191,7B2)
(37,364,391,015)
(2,102,?32,449)
(1,312,414,303)
87,678,657,321
056 943 B3S
209 949
903 661
21,157,194,411
(144,125,426)'
(1,353,571,56B)
43,430,460,627 (20,774,B11,903)
206,590,018
s,7gy,oz8,753
409,590,871
(3,45B,466,080)
244,151,788
(5,D39,493,7761
7,693,711,954
Nat caslt used in investing activities (B)
c. Cash flows from financing activities
Receipts/(Paymenfrto) m borrowing Receipts/(Payment) of Sub-Ordnated Bond Payment of cash dividend
Coupon payment on perpetual bond
j¥at cash flow frorri/ {used inj ffnancfng activftJes (C)
Net Increase in cash and cash equlvatents (A+B+C}
Effects of the changes of exchange rate on cash and cash equivalents"
Cash and Cash equivalents ar the beqinning of the year
f1,497,696,994) (3,241,269,3121
13,291,673,656
1,222,800,000 (738,274,23B) 5B7 500,000
13 699 418
(37,620,t29,454)
(1,000,000,000)
(703,1B,322) 367 500.000
Z9,690, 747 776
6,805 04B,427 7,971/644,023
1,499,598,967 1,588,182,967
57,370,914,522 47,822,087,522
G. Cash and cash equivalents at the end of the year (D+E4F)
65,675,561,gD5
57,370,9k4,512
cash and cash Equfvalenfs at the end of the year
Cash in hand (including forelgn currencies)
3.1
12,442,869,1B6
8,600,186D5l
Balance with Bangladesh bank and cfs agent bank
3.2
33,000,52t,554
27,586,149,728
Balance wJth other banks & financial Institution
4
17,72_4,64S,465
21,177381,033
Money at call on short notlce
S
Z,500,000,000
Prize Bond
7,525,700
7,227,700
65,675,561,905
57,370,914,512
The annexed notes from 01 to 50 form an Integral part oF these rinancial statements.
20
bakertilty
UE 1 'A/tJfi K hT t•1BFri
UNITED COMMERCIAL BANK PLC
Liquidity Statement
Asset and Liability Maturity Analysis As at 31 December 2024
Amount in Taha
Particulars
Up to 1
Monk
1 - 3
Months
Z-12
Months
1 - 5
Years
S yea rs
-ppsj
Assets
Cash in hand 39,955,327,490 - - | 'i,488,063,300 ^.», 3,390,740
Balance with other banM & financial institutions 10,359,800,D00 5,000,000,Q00 ! 2,364,845,465 - 17,72€,64S.165 Money at call on short notice 2,500,000,000 2,500,000,000 Investment 1,237,425,942 7,631,393,866 19,246,367,419 11,736,400,DOC 44,999,800,000 97,851,387,227 Loans and Advances 53,418,481,147 116,172,056,758 135,226,918,187 tg1,479,105,791 7o,S4g,o22,967 So2,845,184,850
Bill Purchased & Discounted _ 2,466,330,D78 4,1SS,220,3D6 _ 3,362,134,053P,983,684,437
Fixedassets includin9 premises, furniture & fixture 161,810,160 323,620,320 1,956,291,442 7,766,887,692 7,3é7,970,920 17,056,580,533
Other Assets 3,276,765,572 850,133,780 697,962,545 15,111,489,521 5,43 2S,373 6
Non banking assets ,336 0
Total AsseM (A)
113,375,940,339
134,132,425,030
159,9B9,673,646
221,458,?28,469
y39,8Z2,70B,9B8
768,779,376,47t
Liabilities
Borrowing from Bangladesh bank, other banM, 22,755,101,528 9,289,433, 8
financial institutions and agents
22,157,102,!29 9,927,913,822
79,786,237,60Deposits 77,5é1,096,7S | 128,907,541,749
Provisions and other 1iabilities 4,211,368,281 | 75,211,893
10,32,816,456 21,970221,X0 | 18,47?,590,3% 54216,K726
16,823,646,166 %,931,168,976 I o4,945,75#,712 92,987,149,628
Total Liabilities (B}
104,S07,S66,583
138,272,187,090
146,302,564,754
238,829,303,647
99,077,D32,310
726,988,654,3B1
Net Liquidity Cap (A-e)
8,868,373,756
(4,139,762,060)
13,687,10B,892
(17,370,S75,l79)
4O,745,676,6B1
41,790,B22,O90
21
,*-*, |. ' *•. ']
!J II! I‹ t vLiJIIIll IIII
United Commercial Bank PLC and its Subsidiaries Notes to the Financial Statements
For the Year Ended 31 December 2024
The Bank and Its Activities
Status of the Bank
United Commercial Bank PLC ('UCB' or "the Banl‹") was iiscorpoi'ated in Bangladesh as a puhlic limited company of 26 June 1983 under the Companies Act 1913. The Bank obtained approval from Bangladesh Banl‹ to commence operations on 13 November 1983.
As of 31 December 2024, UCB operates:
231 branches (2023: 228), including one Islamic Banking branch that adheres to Islamic Shariah principles.
50 Islamic Banking windows within conventional branches, providing Islamic Banking seivices in compliance with Shariah principles.
177 sub-branches (2023: 152).
716 ATMs/CRMs (2023: 672).
855 agent banking outlets (2023: 850).
UCB is a publicly traded company listed on the Dhaka Stock Exchange (DSE) Limited and the Chiftagong Stock Exchange (CSE) Limited. The Bank's Head office is located at: Plot - CWS-(A)-1, Gulshan Avenue, Dhaka - 1212, Bangladesh.
Nature of Business
UCB is engaged in a full range of commercial and Islamic banking services across Bangladesh. The Bank serves both individual and corporate clients, offering:
Traditional banking services, including deposit products, loans, trade finance, and treasury management.
Islamic banking services, provided through its dedicated Islamic Banking branch and windows.
Transaction and foreign exchange services, catering to local and International clients.
Structured finance solutions for corporations and financial institutions.
Inland and international remittance services for individuals and businesses.
Direct Custody and Clearing (DCC) services, introduced in 2020 for offshore clients.
Offshore Banking Unit
The Offshore Banking Unit (OBU) operates as an independent business division of UCB under the regulatory framework set by Bangladesh Bank, as outlined in:
OIT-shore Banking Act, 2024.
BRPD Circular No. 02, dated 25 February 2019.
FE Circular Letter No. 01, dated 18 March 2024,
Additional regulatory directives and guidelines.
The Bank received approval to establish its Offshore Banking Unit through Letter No. BRPD (P-3) 744 (117)/2010-2577, issued on 9 3une 2010, and officially Commenced operations on 10 November 2010.
Currently, UCB operates a single Offshore Banking Unit in Dhaka, which provides a comprehensive suite of foreign currency-based Commercial banking services, ensuring full compliance with Bangladesh Bank regulations. The financial statements of the OBU are presented separately, maintaining transparency and regulatory adherence.
22
Islamic Banking
United Commercial Bank PLC reEeived formal approval from Bangladesh Bank to commence Islamic Banking operations through Letter No. BRPD (P-3} 745 {17)/2020-1453, dated 6 February 2020.
The Bank currently operates through 50 Islamic Banking windows and a dedicated Islamic Banking branch, offering a comprehensive range of Shari'ah-compliant financial solutions tailored for retail, SME, and corporate clients.
UCB extends Islamic financing facilities under various Shari'ah compliant modes, including:
Murabaha (cost-plus financing)
Bai-Salam (advance purchase financing)
Musharaka (profit-and-loss sharing partnership)
Hire Purchase Under Shirkatui Melk (HPSFI) (lease-purchase)
Other approved Shari'ah modes
Additionally, the Bank mobilizes deposits through 5harI'ah compliant instruments, such as:
AT-Wadiah {Current Accounts)
Mudaraba (Savings, Short Notice Deposits, Term Deposits, and Recurring Deposits)
The financial statements for Islamic Banking operations are presented separately, ensuring transparency and compliance with regulatory requirements.
1.s Agent Banking
UCB received approval from Bangladesh Bank on 7 February 2017, through Letter No. BRPD (P-3) 745(17)/2017 677, to commence Agent Banking operations. Commercia! operations officially began on 1 February 2018.
As of 31 December 2024, UCB has established 855 agent outlets across Bangladesh, securing the Sth position In the industry based on the number of agent outlets.
Key highlights:
A strong, granular deposit port:folio of BDT 1,154 crore, sourced from grassroots-level banking.
245,000 accounts acquired, representing approximately 10% of the Bank's total accounts.
Core Services Provided: s• Account opening
ñ• Cash deposit and withdrawal
Inwaro foreign remittance disbursement
G Utilil:y bill collection
v* Fund transfers via RTG5 and BEFfN
Salary disbursement
Bank slatement issuance
"• Loan sourcing & repayment collection (SOD, SUE, and Agricultural loans)
•• Credit card application pracesslng
•• Balance Inquiries, internet & SMS banking
School fee collection
•t• Bangla QR merchant acqulsltlon
bakertitty 23
Innovations & Technological Advancements:
UCB's Agent Banning pTatfoim has introduced several cutting-edge features to enhance accessibilñy and
customer convenience, including:
Fully digital, paperless onboarding using e-ltYC.
Bangla QR code onboarding through agents.
Branch-led business model to enhance customer engagement.
"UPAY"-collaborated business initiatives, pt'omoting digital financial inclusion.
These innovations underscore UCB's commitment to financial inclusion and delivering modern, accessible
banking solutions across Bangladesh.
1.g Subsidiary Companies
A subsidiary is an entity over which UCB exercises control through its shareholdin9 and voting rights. Control is established when the Bank holds more than 50% of a company's shares or has the power to govern its financial and operational policies.
As per International Accounting Standard (IAS) 27 ("Separate Financial Statements") and International Financial Reporting Standard (IFRS) 10 ("Consolidated Financial Statements"), UCB prepares both Solo Financial Statements and Consolidated Financial Statements.
The non-controlling interest (NCI), representing minority shareholders' stake, inclMdes share capital and profits attributable to minority shareholders. Intergroup transactions, balances, and unrealized profits/losses are eliminated in consolidation.
UCB Stock Brokerage Limited
UCB Stock Brokerage Limited was restructured on 22 November 2020 from UCB Capital Management Limited
(DSE TREC No. 181, CSE TREC No. 015).
Company Background:
Incorporated on 20 November 2007 as UCB Capital management Limited.
Commenced operations on 19 June 2013.
Operates under licenses from Dhaka Stock EXchange (DSE) and Chit:tagong Stock Exchange (CSE),
Registered with Bangladesh Securities and Exchange Commission (BSEC) as a Stock Dealer.
Core Activities:
Brokerage services
Plargin loan facilities
Stock trading and investment management
24
Licensing & Regulatory Approvals:
Authority
License/Registration No.
Purpose
Bangladesh Securities and Exchange Commission (BSEC)
3.I/DSE-181/2011/486
Stock Broker
(DSE]
Bangladesh Securities and Exchange Commission (BSEC)
3.1/DSE-181/2011/487
Stocl‹ Dealer
(DSE)
Bangladesh Securities and Exchange Commission (BSEC}
3.2/CSE-015/2014/210
Stock Brother
(CSE)
Bangladesh Securities and Exchange Commission (BSEC)
3.2/CSE-015/2014/211
Stock Dealer
(CSE)
Bangladesh Securities and Exchange Commission (BSEC)
BSEC/Registration/CDBL-DP-175
Depository Functions with
Central Depository Bangladesh Limited (CDBL)
Dhaka Stock Excnange Limited (DSE)
TREC NO. 181
Trading with DSE
Chittagong Stock Exchange Limited (CSE)
TREC NO. 015
Trading with CSE
UCB PLC holds 14,999,999 shares of UCB Stack Brokerage Limited (Face Value: Tk. 100 each), equivalent to 99.99%a ownership.
UCB Investment Limited
Incorporated on 3 August 2011, UCB Investment Limited is a private limited company operating under the Companies Act 1994.
Registered with R3SC (C-94654/11).
Obtained Merchant Banking License (NB-97/2020) from BSEC on 5 October 2020.
Provides portfolio management, underwriting, fund management, and capital markeC advisory services.
UCB PLC holds 99,999,999 shares (Face Value: Tk. 10 each), equivalent to 99.99% ownership.
1.5.3 UCB Asset Management Limited
Incorporated on 5 February 2019 under the Companies Act 1994.
Registered with RJSC.
Licensed as an Asset Management Company (BSEC/Asset /'danager/2020/46) on 3 February 2020.
Manages investment portfolios, mutual funds, and institutional asset management. UCB PLC holds 99,999,999 shares (Face Value: Tk. 10 each), equivalent to 99.990/a ownership.
UCB Fintech Company Limited
Incorporated on 30 July 2020 under the Companies Act 1994.
Offers mobile financial services, including:
a Cash-in, cash-out, and money transfers
Utility bill payments
E-commerce & in-store payments a Remittance services
G2P & P2G transactions
UCB PLC holds 499,99g,999 shares (Face Value: Tk. 10 each), equivalent to 99.99% ownership.
2s
UCB Exchange (SG) PTE Ltd
UCB Exchange (SG) PTO Ltd, a wholly owned subsidiary of United Commercial Bank PLC, was incorporated in Singap0re on Januaiy 25, 2023, as a private limited company under the Companies Act 1967 in Singapore. It operates under the Unique Entity Number (UEN): 202302830G. Following its incorporation, UCB Exchange applied for a remittance license from the Monetary Authority of Singapore (MAS), yvhIch is currently under process.
The company's primary objective is to engage in iemittance services and conduct transactions, activities, and operations typically associated with remittance anrI exchange houses, UCB PLC holds 1,000 shares of UCB Exchange (SG) PTE Ltd, each with a face value of I Singapore Dollar (SGD 1.00), representing 100% ownership of the company.
summary of Shareholding in Subsidiaries and Associates
The shareholding structure of UCB PLC in its subsidiaries and associates is summarized below:
Name of Subsidiary
Face Value per Share
Total No. of Ordinary Shares
Shares Held by UCB
UCB's
Shareholding
UCB Stock Brokerage Limited
BDT t00
25,000,000
24,999,999
99.99%
UCB Investment Limited
BDT 10
100,000,000
99,999,999
99.99%
UCB Asset Management Limited
BDT10
100,000,000
99,999,999
99.99%
UCB Fintech Company Limited
BDT 10
500,000,000
499,999,999
99.99°A
UCB Exchange (SG) PTE Ltd
SGD 1.00
1,000
1,000
100%
UCB Foundation
UCB Foundation, the philanthropic arm of United Commercial Bank PLC, was established under the Societies Registration Act, 1860, with the mission of driving sustalnable development across Bangladesh. The foundation actively contributes to education, healthcare, and community development, ensuring a meaningful impact on society.
Education Initiatives
UCB Foundation is committed to enhancing access to quality education through:
Scholarships and stipends for meritorious and underprivileged students.
Grants and funding for educational institutions.
Capacity-buildin9 programs to equip students with essential skills for the future. Healthcare Contributions
The foundation plays a pivotal role in Improving public health by:
Supporting healthcare facilities with financia( aid and essential medical equipment.
Funding public health initiatives to benefit underprivileged communities.
Enhancing access to medical services for those in need,
Community Development EffortsBeyond education and healthcare, the foundation collaborates with local and nonprofit organizations to:
Address critical social challenges such as poverty alleviation and disaster relief.
Promote economic empowerment by supporting small businesses and skill development programs.
Preserve cultural heritage and foster social cohesion.
Through these strategic initiatives, UCB Foundation remdins dedicated to uplifting communities and fostering a better, more inclusive future for Bangladesh.
bakertitty 2G
' '0flñ '.1E f•IE f.H
Summary of Significant Accounting Policies and Basis of Preparation of the Financial
Statements
Basis of Preparation
The financial statements of the Bank have been prepared in accordance with:
First Schedule (Section 38) of the Bank Company Act, 1991 (as amended),
Bangladesh Bank guidelines, including BRPD Circular No, 14 dated June 25, 1003, anc other reIe'vant circulars.
International Financia( Reporting Standards (1FRSs) and International Accounting Standards (IASs).
Standards set by the Financial Reporting Council (FRC) under the Financial Reporting Act, 2015 (FRA).
Other applicable laws and regulations in Bangladesh.
In Compliance with Bangladesh Bank BRPD Circular No. 02, dated February 25, 2019, these financial
statements for the year ended December 31, 2024, include the operations of both:
Domestic Banl‹ing Unit (DBU) and Offshore Banking Unit (OBU)
Consolidated financial statements of the Group, comprising the Bank (parent company) and its subsidiaries.
Statement of Compliance
The Financial Reporting Act, 2015 (FRA), enacted in 2015, led to the formation of the Financial Reposing Council (FRC) in 2017. The FRC adopted IFRSs and IASs as the applicable financial reporting frdmework for public interest entities, including banks.
Accordingly, the cansolidated and separate financial statements of the Group and the Bank have been prepared in line with IFRSs as adopted by FRC, while also complying with the following regulatory requirements:
The Bank Company ACt, 1991, as amended.
The Companies Act, 1994, as amended.
Circulars, rules, and regulations issued by Bangladesh Bank (BB).
Bangladesh Securities and Exchange Commission (BSEC) Regulations, including:
Bangladesh Securities and Exchange Rules, 2020.
Bangladesh Securities and Exchange Ordinance, 1969.
Bangladesh Securities and Exchange Act, 1993.
BSEC (Public Issue) Rules, 2015.
a BSEC {Debt Securities) R.ules, 2021,
Income Tax Act, 2023, and related regulations.
The Value Added Tax and Supplementary Duty Act, 2012, and related amendments.
Dhaka Stock Exchange (DSE}, ChiKagong Stock Exchange (CSE), and Central Depository Bangladesh
Limited (CDBL) regulations,
Financial Reporting Act, 2015.
27
Regulatory Precedence
In cases where there is a conflict between IFRS requirements and Bangladesh Bank regulations, the Bank Company Act, 199a (as amended}, and Bangladesh Bank circulars and regulations shall take precedence.
The following key departures from IFRS have been applied:
Presentation of financial statements
IFRS: As per IAS 1, a complete set of financial statements con pi ises a statement of financial position, a statement of pi ofit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, notes comprisins a summary of significant accounting policies and other explanatory information and comparative information. IAS 1 has also stated the entity to disclose assets and liabilities under current and noncurrent classification separately in its statement of financial position.
Bangladesh Bank: The presentation of the financial statements in prescribed format (i.e. balance sheet, profit and loss account, cash flow statement, statement of changes in equity, liquidity statement) and certain disclosures therein are guided by the "First Schedule" (section 38) of The Banl‹ Company Act, 1991 (amendment up to date) and BRPD circular no. 14 dated 25 June 2003 and subsequent guidelines of Bangladesh Bank. In the prescribed format there is no option to present assets and liabilities under current and non-current classifications.
Investment in Equity instrument
IFRS. As per requirements of IFRS 9, classification and measurement of investment in shares and securities will depend on how these are managed (the entity's business model) along with their contractual cash flow characteristics. Based on these factors it would generally fall either under 'at fair value through profit or loss account" or under 'at fair value through other comprehensive income' where any change in the fair value (as measured in accordance with IFRS 13) at the year-end is taken to profit and loss account or other comprehensive income respectively.
Bangladesh Bank: As per Banking Regulation and Policy Department (BRPD) circular no. 14 dated 25 June 2003, investments in quoted shares and unquoted shares are revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of investment; otherwise, investments are recognized at cost. UCB PLC recognizes investment in shares and securities at cost basls.
IFRS: Debt instruments include both bonds and bills. As per requirements of IFRS 9 Financial Instruments, bonds can be categorized as "Amortized Cost (AC)", "Fair Value Through Profit or Loss (FVTPL)" or "Fair Value through Other Comprehensive Income (FVOCI}". Bonds designated as Amortized Cost are measured at amortized cost method and interest income is recognized through profit and loss account. Any changes in fair value of bonds designated as FVTPL is recognized in profit and loss account while changes in fair value of bonds designated as FVOCF is recognized in other reserve as a part of equity. As per requirements of IFRS 9, bills can be categorized either as "Fair Value Through Profit or Loss (FVTPL)" or "Fair Value through Other Comprehensive Income (FVOCI)". Any change in falr value of bills is recognized in profit and loss or other reseive as a part of equity respectively.
Bangladesh Bank: As per DO5 Circular no. 05 (26 May 2008) and subsequent clarification in DOS Circular no 05 (28 January 2009), Government securities/bills are classified either into Held for Trading (HFT) or Held to Maturity (HTC). HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of securities which have not matured as at the balance sheet date are recognized in other reserves as a part of equity and any losses on revaluation of securities which have not matured as at the balance sheet dale are charged in the profit and loss account. Interest on HFT securities including amortization of discount are recognized in the profit and loss account.
bal‹ertitty 28
rirT'z.' nj f'1FiJRcn
IV. Repo and Reverse Repo ti ansactions
IFRS: As per IFRS 9 when an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar asset) aE a fixed price on a future date (iepo), the arrangement is treated as a loan and the undeilying asset continues to be recognized at amortized cost in the entity's financial statements. The difference between selling price and repurchase price will be treated as interest expense. The same rule applies to the opposite side of the transaction (reverse repo),
Bangladesh Bank: As per DOS Circular letter no. 6 dated 15 July 2010 and subsequent clarification in DOS circular no.2 dated 23 January 2013, when a bank sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending), the arrangement is accounted for as normal sales transactions and the financial assets are derecognized in the seller's book and recognized in the buyer's booI‹.
However, as per DMD circular letter no.7 dated 29 July 2012, non-primary dealer banks are eligible to participate in the Assured Liquidiy Support (ALS) progrnns, whereby such banks may enter collateralized repo arrangements with Bangladesh Bank. Here the selling bank accounts for the arrangement as a loan, thereby continuing to recognize the asset.
IFRS: As per IFRS 9 an entity shall recognize an impairment allowance on loans and advances based on expected credit losses. At each reporting date, an entity shall measure the impairment allowance for )oans and advances at an amount equal to the lifetime expected credit losses if the credit risk on these loans and advances has increased significantly since initial recognition whether assessed on an individual or collective basis considering all reasonable information, including that which is forward-looking, For those loans and advances for which the credit risk has not increased significantly since initial recognition, at each reporting date, an entiry shall measure the impairment allowance at an amount equal to 12 month expected credit losses that may result from default events on such loans and advances that are possible within 12 months after reporting date.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 16 dated GB
November 2014, BRPD circular no. 12 dated 20 August 2017, BRPD circular no. 15 dated 27
September 2017, BRPD circular letter no. 3 dated April 21, 2019, BRPD circular no. 16 dated 21 July
2020 and BRPD circular letter no. 52 dated 20 October 2020, BRPD circular 09, dated 8 April, 2024 and circulars issued till end of 2024, a general provision at 0.25% to 2 fo under different categories of unclassified loans (standard/SMA loans) has to be maintained regardless of objective evidence of impairment. Also, provision for sub-standard lqans, doubtful loans and bad/losses loans has to be provided at 5% to 20%, 5% to 50% and 100%, respectively for loans and advances depending on the duration of overdue. Again, as per BRPD circular no. 14 dated 23 September 2012, BRPO circular no. 07 dated 21 June 2018 and BRPD circular no. 13 dated 18 October 2018 and BRPD circular no 06 daCed 25 April 2023. a general provision at 0.25"/o IO 1% is required to be provided for all off-balance sheet exposures, along with extia provision of 1%-5% on remaining overdue. Such provision policies are not specifically in line with those prescribed by International Financial Reporting Standards (IFRS) 9: Financial Instruments.
vi. Recognition of interest in suspenseIFRS: Loans and advances to customers are generally classified at amortized cost as per IFRS 9 anJ interest income is recognized by using the effective interest rate method to the gross carrying amount over the term of the loan. Once a loan subsequently becomes credit-impaired, the entit:y shall apply the effective interest rate to the amortized cost of these loans and advances.
t• •'* ""
"› '
29