Union Bank goes for 0.7% stake share buyback worth Rs. 117 m

Union Bank of Colombo (UBC) has announced a move to buy back shares amounting to 0.7% stake for Rs. 117 million.

It said the Board of Directors resolved on 25 March to repurchase a maximum of 7.8 million ordinary shares at a price of Rs. 15 per share from the shareholders of UBC, subject to regulatory and shareholder approval. 

Union Bank’s shares in issue is 1.0914 billion of which 861 million is held by non-nationals. 

Its 52-week highest share price is Rs. 15.80 and lowest is Rs. 10.70. It last traded at Rs. 11.40.

Net asset value per share in 2018 was Rs. 15.23, down from Rs. 16.36.

Last year, the Bank posted a net profit of Rs. 472.5 million, up by 3% from 2017. Group profit was down by 3% to Rs. 534.6 million. The Bank’s profit before all taxes was Rs. 1.25 billion. The Bank’s income grew 17% to Rs. 13.9 billon and Group figure was up 16% to Rs. 16 billion. Total Assets of the Bank grew by 5.8% to Rs. 126 billion.

UBC is one of the well-capitalised banks, continuing to maintain its robust Capital Adequacy ratio, which was well above the limits even after adoption of SLFRS 9. Its Common Equity Tier 1 Capital Ratio (Minimum Requirement – 6.375%) as at end 2018 was 17.41%. The Tier 1 Capital Ratio (Minimum Requirement – 7.875%) was 17.41%, and Total Capital Ratio (Minimum Requirement – 11.875%) was 17.41%.

The proposed date of commencement of repurchase of offer will be 15 May, and the closing date of the offer will be 29 May.