UB Finance Rs. 254 m Rights Issue snapped up

Monday, 24 June 2024 00:00 - - {{hitsCtrl.values.hits}}

UB Finance PLC has announced that its Rs. 254.3 million Rights Issue has been oversubscribed.

On the basis of two new shares for every 13 held, the issue involved 423,798,049 shares at 60 cents each. The Company said it received applications requesting for 500,728,992 shares. Net asset per share as at 31 March was Rs. 1.02.

The Rights Issue was to comply with the minimum regulatory core capital requirement stipulated by the CBSL and create a buffer in the process for smooth future business operations. The Company expects to use the proceeds from the Rights Issue to expand the loans and Advances portfolio.

Union Bank of Colombo PLC owns 89.94% stake in UB Finance. The public shareholding of UB Finance as at 31 March was 10.053% comprising 4,773 shareholders.

UB Finance’s Core Capital to Risk Weighted Asset Ratio (Minimum 8.5%) was 30.3% as at 31 March, down from 31.1% a year ago and Total Capital to Risk Weighted Asset Ratio (Minimum 12.5%) was 30.3%. Capital Funds to Total Deposit Liabilities Ratio (Minimum 10%) was 32% down from 39% as at end FY23.

In the 4Q of FY24, UB Finance income declined by 9% to Rs. 552.7 million and operating profit before VAT on financial services was Rs. 44 million down by 47%. The Company posted a pre-tax profit of Rs. 23 million, down by 59%. However, UB Finance posted an after tax loss of Rs. 4.6 million 4Qof FY24 as against a profit of Rs. 56 million a year ago.

In FY24, income gained by 8% whilst it posted a pre-tax profit of Rs. 45.5 million as against a loss of Rs. 113 million in FY23. After tax profit was Rs. 1 million in FY24, in comparison to a Rs. 113.5 million loss.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.