Union Capital's half-year loss widened more than 32 per cent year-on-year to Tk 366 million in January-June this year as falling interest income and weak recovery of non-performing loans continued to weigh on the non-bank financial institution's earnings.
The company reported a consolidated loss per share (EPS) of Tk 2.12 for the first six months of 2026, as against a loss of Tk 1.60 in the corresponding period a year earlier, according to its unaudited second-quarter financial statements published on Wednesday.
Union Capital attributed the deterioration to a sharp decline in interest income, lower recoveries from non-performing loans that reduced the release of loan-loss provisions, and weaker recoveries from written-off loans.
The non-bank financial instruction's operating cash flow also weakened significantly during the period. Consolidated net operating cash flow per share (NOCFPS) fell to negative Tk 0.18 for the first six months of the year from a positive Tk 0.89 in the same period of 2025, indicating pressure on its core cash-generating ability.
The company's financial position continued to deteriorate as accumulated losses deepened. Consolidated net asset value (NAV) per share stood at negative Tk 67.61 as of June this year, compared with negative Tk 65.49 at the end of December last year.
Explaining the decline in net assets, Union Capital said it incurred a net loss after tax of approximately Tk 366 million during the January-June period. The loss was mainly driven by lower net interest income due to reduced recoveries from non-performing loans, coupled with weaker recoveries from loans that had already been written off.
Union Capital has remained under financial stress for several years, with its profitability and capital base continuing to come under pressure from weak asset quality and limited recovery of delinquent loans.
Despite the weaker half-year performance, the company managed to reduce its quarterly loss. Consolidated loss reduced by more than 30 per cent to Tk 207 million for the April-June quarter this year, improving from a loss of Tk 299 million in the same quarter a year earlier.
Despite the disclosures, its stock surged 8.7 per cent to close at Tk 5 on Wednesday on the Dhaka Stock Exchange.
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