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Union Bank has shocked its stakeholders, disclosing a staggering loss of Tk 258 billion in 2024.
Sources in the banking sectorsay this is likely the highest loss ever posted by any individual bank in the country's history.
According to a stock exchange filing on Tuesday, Union Bank made a loss per share of Tk 248.91 in the year to December 2024, which was only a loss of Tk 2.82 per share the year before.
The latest results align with the recent claim by the central bank about the net asset values of the five troubled Islamic banks, including Union Bank, that are now undergoing merger.
The Union Bank's financial disclosure also indicates that investors had no clue about its real status in 2024.
The bank was listed in the stock market as a profitable entity in 2022. It published its financial results for 2023 just a month ago. Then came the 2024 results, which could not be predicted by investors and market stakeholders.
The massive loss pushed the net asset value per share of Union Bank down to Tk 237.44 in the negative.
Earlier this month, the Bangladesh Bank declared Union Bank ineffective and appointed an administrator ahead of its planned merger with four other troubled banks.
Following the central bank's announcement, trading in Union Bank shares on the stock exchanges was suspended.
Five Shariah-based banks-First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank-are being merged by the Bangladesh Bank into a new entity called Sammilito Islami Bank.
The central bank dissolved the boards of these banks on November 5 this year and appointed administrators to oversee the merger, which was initiated due to significant non-performing loans facing the lenders and their alleged mismanagement.
Bangladesh Bank Governor Dr Ahsan H Mansur on Sunday said a substantial portion of capital from the country's five troubled Shariah-based banks had been laundered abroad, leaving no option but to merge them to safeguard the sector.
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