Bangladesh mobile phone users to pay more

File photo: Wall Street Journal

Dhaka, Bangladesh (BBN)– The board of directors of United Commercial Bank (UCB) Limited has decided to form a subsidiary company, aiming to provide mobile financial services (MFS).

The formation of subsidiary company is subject to completion of all regulatory formalities from Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC), said an official disclosure on Monday.

Initial authorised and paid-up capital of this subsidiary company will be BDT 5.0 billion and BDT 500 million respectively which shall be increased from time to time as per investment requirement of the regulatory authority, the disclosure said.

According to the disclosure, UCB will hold at least 51 percent shares of the subsidiary company and rest 49 percent shares may be offered to national/international reputed MFS/DFS providers as per MFS guidelines of Bangladesh Bank.

Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 1986, closed at BDT 16.50 on Sunday.

In the last one year, its share traded between BDT 15.70 and BDT 25.30.

The bank disbursed 10 percent cash dividend for the year ended on December 31, 2017.

As per the un-audited financial statements, the bank’s consolidated earnings per share (EPS) stood at BDT 0.73 for July-September 2018 as against BDT 1.25 for July-September 2017.

In nine months, the consolidated EPS was BDT 1.78 for January-September 2018 as against BDT 2.50 for January-September 2017.

The consolidated net operating cash flow per share (NOCFPS) was BDT 6.04 in the negative for January-September 2018 as against BDT 11.88 for January-September 2017.

The consolidated net asset value (NAV) per share was BDT 26.27 as on September 30, 2018 and BDT 25.38 as on September 30, 2017.

The bank’s paid-up capital is BDT 10.54 billion and authorised capital is BDT 15 billion, while the total number of securities is 1.05 billion.

The sponsor-directors own 34.67 percent stake in the bank while the government owns 0.81 percent, institutional investors own 18.87 percent, foreign investors 1.84 percent and the general public 43.81 percent as on October 30, 2018, the DSE data shows.