United Finance financial analysis: 5.95% NPL, 9.24% cost of fund and a 94% payout on 5.9% ROE (Oct 2026)

Investment considerations: 18.45% capital ratio and unbroken profits, against 5.95% classified loans and a 9.24% cost of fund

United Finance PLC (DSE: UNITEDFIN), named United Finance Limited until 6-Jan-2025, is a finance company licensed by Bangladesh Bank, incorporated on 27-Apr-1989 and listed on the Dhaka Stock Exchange since 1994 [1 p.337] [9]. It provides lease finance, term loans, short-term working-capital finance and home loans, and takes term deposits with tenures of three months to 15 years [1 p.337]. It has no subsidiaries, so every figure in this note is on the company basis [1 p.211]. At 31-Dec-2025 it reported lease, loans and advances of BDT 20,688.8m, deposits of BDT 13,187.5m, borrowings of BDT 8,138.2m and shareholders' equity of BDT 3,349.1m [1 p.331].

The filings describe a lender that stayed profitable through 2021-2025 with a single-digit return on equity. Profit after tax was between BDT 142.5m (2022) and BDT 222.2m (2021) in every year of the 2020-2025 series, and the printed return on equity was between 4.43% and 6.90% [2 p.173] [1 p.210]. Two lines rose over the last two years: the printed cost of fund rose from 6.41% in 2023 to 9.24% in 2025, and classified loans rose from 4.84% to 5.95% of loans over the same period [1 p.211] [2 p.174] [1 p.210]. Against that, the capital adequacy ratio was 18.45% at Dec-2025 against a 10% minimum, the auditor's opinion was unmodified, provision maintained exceeded the provision required by BDT 0.25m, and Emerging Credit Rating raised the long-term rating to AAA in its 2026 surveillance [1 p.372] [1 p.326] [1 p.369] [9].

Business model: BDT 20.7bn of lease, term and home finance, 38% to small businesses, funded by term deposits and Bangladesh Bank refinance

The company earns most of its income as interest on four products. In 2025 interest on term and home loans was BDT 1,407.8m, on leases BDT 770.1m and on short-term financing BDT 120.5m; a further BDT 231.0m was interest on deposits placed under lien for credit-line facilities and BDT 4.0m interest on bank balances [1 p.376]. At Dec-2025 term loans were BDT 10,113.1m (48.9% of the book), lease receivables BDT 5,972.0m (28.9%), home loans BDT 2,928.5m and short-term loans BDT 1,169.1m; auto and personal loans, first booked in 2025, were BDT 27.8m [1 p.356] [13]. Term loans grew from BDT 8,318.7m and lease receivables shrank from BDT 6,707.2m during 2025 [1 p.356].

By industry, trade and commerce was the largest exposure at BDT 3,614.3m, followed by real estate and housing (BDT 3,077.7m), food production and processing (BDT 2,830.7m) and the service industry (BDT 2,408.2m) [1 p.358]. Cottage, micro, small and medium enterprises accounted for BDT 7,945.7m, 38.4% of loans [1 p.359] [13]. Dhaka division held BDT 11,388.1m of loans across urban and rural areas, and loans booked in rural areas rose from BDT 3,398.5m to BDT 5,892.9m in 2025 [1 p.359]. One client had an outstanding balance above 15% of total capital at Dec-2025 (BDT 646.6m), against two clients (BDT 1,072.1m) a year earlier, and neither year shows a classified amount for those clients [1 p.358].

Over 2020-2025 the printed key highlights show total assets rising from BDT 21,559.7m to BDT 29,388.1m, while deposits moved between BDT 12,207.8m (2024, the lowest of the series) and BDT 14,627.3m (2022) [2 p.173] [1 p.210]. Lease and term loan disbursements were BDT 10,432.9m in 2025 against BDT 8,245.3m in 2024, and home loan disbursements were BDT 656.6m against a series high of BDT 1,528.2m in 2022 [1 p.210]. The company had 724 employees paid more than BDT 36,000 a year in 2025, against 829 in 2024 [1 p.380].

Line items: cost of fund up 2.83pp in two years cut net interest income to BDT 907m in 2025; investment income rose to BDT 221m

Interest income: interest income rose from BDT 1,929.8m in 2021 to BDT 2,650.5m in 2024 and fell to BDT 2,533.3m in 2025 [4 p.39] [1 p.333]. In 2025 interest on leases fell by BDT 52.5m and on term and home loans by BDT 87.4m, while lien-deposit interest rose by BDT 28.7m [1 p.376]. The average loan book was lower in 2024 than in 2023 (year-end loans BDT 19,463.4m against BDT 20,376.7m) and higher in 2025 (BDT 20,688.8m) [1 p.331] [2 p.261]. Interest on loans in the special-mention class and below is credited to interest suspense, not income: BDT 103.6m was transferred to suspense in 2025 and BDT 169.8m in 2024 [1 p.367].

Interest expense: interest paid was BDT 1,626.3m in 2025, of which BDT 1,297.6m on deposits and BDT 319.0m on borrowings [1 p.376]. The company's printed cost of fund was 6.36% in 2021, 6.41% in 2022 and 2023, 8.37% in 2024 and 9.24% in 2025, the highest of the five years [4 p.77] [3 p.78] [2 p.174] [1 p.211]. Interest expense took 59.4% of interest income in 2021 and 64.2% in 2025 [13]. On 2025 year-end deposits and borrowings of BDT 21,325.7m, each 1pp of funding cost equals about BDT 213m of interest a year (derived arithmetic, not a forecast) [13].

Net interest income: net interest income was BDT 783.1m in 2021, BDT 866.0m in 2022, BDT 800.1m in 2023, BDT 1,051.8m in 2024 (the highest of the series) and BDT 907.1m in 2025 [4 p.39] [3 p.40] [2 p.263] [1 p.333]. As a share of average total assets it was 3.70% in 2024 and 3.16% in 2025 (derived) [13]. The company's own 'Net interest income as a percentage of working funds' fell from 4.10% to 3.51% [1 p.210].

Investment and other income: investment income rose every year of 2021-2025, from BDT 67.0m to BDT 220.8m [4 p.39] [1 p.333]. In 2025 it comprised BDT 146.4m of dividends on shares and BDT 74.4m of interest on treasury bills [1 p.377]. The investment book held BDT 1,403.8m of preference shares in 13 companies and BDT 745.4m of treasury bills at Dec-2025; ordinary shares were carried at BDT 15.3m, of which United Insurance Company at a cost of BDT 15.0m against a market value of BDT 180.2m [1 p.354] [1 p.355]. Other operating income fell from BDT 116.4m to BDT 84.0m, the lowest of 2021-2025; the largest item, reimbursements of processing, collection and documentation charges, fell from BDT 87.3m to BDT 51.8m [1 p.377] [13]. Investment and other income together were 25.2% of total operating income in 2025 [13].

Operating expenses: total operating expenses fell from BDT 803.6m to BDT 760.7m in 2025, with salaries and allowances down from BDT 586.3m to BDT 523.6m; salaries were 68.8% of operating expenses [1 p.333] [13]. The cost-to-income ratio was 59.6% in 2024 and 62.8% in 2025, against 71.3% in 2022 [13]. Depreciation and repairs rose from BDT 100.7m to BDT 109.6m, including BDT 30.2m of repairs against BDT 18.3m [1 p.378].

Provisions and tax: the loan provision charge was BDT 108.25m in 2025 against BDT 172.1m in 2024, and 'other provision', which includes provisions on investments under DFIM Circular No. 03 of 7-Jul-2025, was BDT 24.6m [1 p.333] [1 p.370]. The charge was 24.0% of profit before provision in 2025 and 42.2% in 2022 [13]. The effective tax rate was 37.79% in 2025 and 39.95% in 2024, against 12.01% in 2022 and 14.40% in 2021 [1 p.210]. The 2025 reconciliation adds 9.40% for inadmissible expenses and deducts 8.05% for dividend income taxed at 20% [1 p.379].

Asset quality: classified loans at 5.95%, the highest since at least 2020, with specific cover down to 55%

Classified loans were BDT 614.2m (3.56%) at Dec-2021, BDT 695.0m (3.44%) at Dec-2022, BDT 986.0m (4.84%) at Dec-2023, BDT 969.2m (4.98%) at Dec-2024 and BDT 1,231.1m (5.95%) at Dec-2025 [4 p.59] [2 p.282] [1 p.361]. The 2025 ratio is the highest and the 2020 ratio (3.14%) the lowest of the six printed years [2 p.173] [1 p.210]. Of the 2025 classified total, bad/loss was BDT 980.3m, doubtful BDT 151.6m and sub-standard BDT 99.1m [1 p.361]. Special-mention loans fell from BDT 541.7m to BDT 462.4m during 2025, after rising from BDT 13.4m at Dec-2021 [1 p.361] [4 p.59].

In the managing director's review the company attributes the 2025 increase to 'the economic slowdown's impact on smaller enterprise borrowers and the trading sector', and states that the large business segment had an NPL ratio of 1.44% [1 p.26]. The provisioning rules applied are DFIM Circular No. 04 of 26-Jul-2021, DFIM Circular No. 37 of 4-Dec-2024 and DFIM Circular Letter No. 13 of 3-Jun-2025: general provision of 1% to 5% on non-SME unclassified loans and 0.25% on SME loans, and specific provision of 20%, 50% and 100% (5%, 20% and 100% for SME) on sub-standard, doubtful and bad/loss loans [1 p.338]. The same note states that four clients were rescheduled under Bangladesh Bank policy-support letters dated 24-Sep-2025 and 12-Nov-2025 [1 p.338].

Provision held against loans was BDT 836.2m at Dec-2025, of which BDT 679.3m specific provision on classified loans, BDT 144.7m general provision and BDT 3.9m special provision for payment-deferral clients [1 p.368]. Specific provision covered 55.2% of classified loans at Dec-2025, down from 60.8%; adding the BDT 358.5m interest suspense, the cover was 97.0% [13]. The printed provision surplus was BDT 0.25m against BDT 11.08m a year earlier [1 p.369]. Loans written off in 2025 were BDT 91.7m, recoveries from written-off accounts BDT 56.9m, and the cumulative written-off balance BDT 1,586.1m, of which BDT 1,399.2m is under lawsuits [1 p.360]. The company reported no wilful defaulters at Dec-2025 [1 p.361].

Funding: BDT 13.2bn of deposits and BDT 8.1bn of borrowings, 59% of them Bangladesh Bank and SME Foundation lines

Deposits were BDT 13,187.5m at Dec-2025: term deposits of BDT 12,073.1m and BDT 1,114.4m of security deposits taken from borrowers at the start of a facility [1 p.364] [1 p.365]. BDT 153.0m of term deposits came from banks and financial institutions at Dec-2025 and none a year earlier [1 p.364]. Deposits fell 2.6% in 2023 and 14.3% in 2024, then rose 8.0% in 2025 [13]; the company reports that individual depositors grew 16.83% in 2025 [1 p.207]. Of non-bank term deposits, BDT 4,863.6m (40.3% of term deposits) fell due within one year at Dec-2025 against BDT 6,044.6m (53.2%) a year earlier [1 p.365] [13].

Borrowings were BDT 8,138.2m. Bangladesh Bank refinance (BDT 1,809.2m) and prefinance (BDT 2,826.8m) and SME Foundation lines (BDT 144.9m) made up 58.7% of the total; bank overdrafts from 12 banks were BDT 2,233.7m, secured short-term loans (Standard Chartered and a Bangladesh Bank repo) BDT 553.6m, and short-term loans from three finance companies BDT 570.0m [1 p.363] [13]. BDT 2,613.6m of borrowings were secured by pledged FDRs [1 p.364]. Borrowings rose from 28.2% of deposits plus borrowings in 2021 to 38.2% in 2025 [13]. The liquidity statement shows positive gaps in every bucket up to one year and a BDT 46.3m negative gap in the one-to-five-year bucket [1 p.336].

Loans were 1.57 times total deposits at Dec-2025 on our calculation; the company's printed 'Loan to deposit ratio', which uses term deposits only, was 1.71 times [13] [1 p.211]. Interest paid on deposits was 9.84% of year-end deposits in 2025 (derived) [13]. Committed but undrawn lending was BDT 4,204.3m at Dec-2025 against BDT 2,573.4m a year earlier [1 p.385].

Ratios: ROE between 4.4% and 6.9% since 2020, leverage near 8.8x and a 94% payout in 2025

Returns: return on average equity (derived) was 4.43% in 2022, 4.45% in 2023, 6.36% in 2024 and 5.92% in 2025, matching the printed figures; the printed 2020 and 2021 figures were 6.62% and 6.90% [13] [2 p.173]. Return on average assets was 0.69% in 2025 [13]. Leverage, total assets over equity, was between 8.0x and 8.9x over 2021-2025 [13].

Growth: loans grew 17.4% in 2022, 0.8% in 2023, -4.5% in 2024 and 6.3% in 2025; total assets grew from BDT 25,859.7m to BDT 29,388.1m over 2021-2025 [13] [1 p.210]. Shareholders' equity moved within BDT 3,191.7m to BDT 3,349.1m over 2021-2025, and NAV per share between BDT 17.06 and BDT 17.90 [1 p.210]; with no rights issue or bonus since 2018, the share count stayed at 187.11m [1 p.374].

Cash conversion: net cash flow from operating activities was BDT 524.6m in 2025 and BDT 798.8m in 2024; interest received in cash was BDT 2,522.7m against BDT 2,533.3m of interest income booked in 2025 [1 p.334]. For a lender, operating cash flow mainly reflects the change in loans and deposits: in 2025 loans absorbed BDT 1,151.8m and deposits added BDT 979.7m [1 p.334].

Payout: the board paid BDT 1.00 per share in cash for 2025, a printed dividend payout ratio of 94.48%, after 89.43% for 2024 [1 p.210] [13]. The cash dividend for 2024 (BDT 187.1m) was larger than the BDT 158.4m of 2025 profit left after the statutory reserve transfer, and retained earnings fell from BDT 207.4m to BDT 178.7m [1 p.375] [1 p.333]. The statutory reserve, BDT 1,105.5m, is required by section 8 of the Finance Company Act, 2023 [1 p.374].

2026 so far: H1 profit before provision up 67% to BDT 238m; 9M EPS BDT 0.35 against BDT 0.23

The unaudited half-year statements show interest income of BDT 1,354.1m in H1 2026 against BDT 1,190.4m in H1 2025, interest paid of BDT 901.86m against BDT 789.65m, and net interest income of BDT 452.2m against BDT 400.8m [5 p.4]. Investment income rose from BDT 98.9m to BDT 122.3m and other operating income from BDT 32.4m to BDT 49.9m, while operating expenses were BDT 386.3m against BDT 389.2m [5 p.4]. Profit before provision was BDT 238.1m against BDT 142.8m; total provisions were BDT 109.97m against BDT 60.77m and tax BDT 77.85m, so profit after tax was BDT 50.3m against BDT 32.4m [5 p.4]. Tax took 60.7% of profit before tax in H1 2026 (derived) [13].

On the balance sheet, loans rose to BDT 21,570.5m and deposits to BDT 14,653.5m at 30-Jun-2026, while borrowings fell to BDT 6,576.9m and equity was BDT 3,212.3m after the 2025 dividend [5 p.2]. The Q2 2026 statements do not give a loan classification table, so no mid-year classified-loan ratio is available from the filing. For the nine months to Sep-2026 the company announced EPS of BDT 0.35 against BDT 0.23, profit after tax of BDT 66.32m against BDT 42.57m, NAV per share of BDT 17.25 and net operating cash flow per share of BDT (5.68) [9]. It attributed the change to growth in total operating income of BDT 74.73m and a BDT 12.83m reduction in operating expenses, offset by higher provisions and tax [9]. The Q3 2026 statements are not yet in the filings corpus.

Peers: lowest cost of fund of the three that print it, a classified ratio level with IPDC, and the highest loans-to-deposits

The peer table uses each company's own 2025 annual report, company basis, with each label as printed. Before using their figures we read each peer's audit opinion. IDLC's auditor states that the consolidated and separate statements 'give a true and fair view' [6 p.315]; IPDC's auditor, Nurul Faruk Hasan & Co, states that the statements 'give a true and fair view of the financial position of the Company as at 31 December 2025' [7 p.249]; DBH's auditor states that the statements 'present fairly, in all material respects, the financial position of the Company' [8 p.254]. All three opinions are unmodified.

Within this set of four, United Finance printed the lowest cost of fund among the three that print that line: 9.24% against 10.12% at IDLC ('Cost of fund') and 10.01% at IPDC ('Cost of fund'), gaps of 0.88pp and 0.77pp [1 p.211] [6 p.163] [7 p.295] [13]. Its classified ratio of 5.95% compares with 5.97% at IPDC ('Percentage of classified loans against total loans, advances'), 4.43% at IDLC ('% of classified loans against total loans') and 0.84% at DBH ('Gross Non-Performing assets to gross advances') [7 p.295] [6 p.163] [8 p.31]. Its capital adequacy ratio of 18.45% compares with 17.82% at IDLC (company column), 17.14% at IPDC and 30.73% at DBH [1 p.372] [6 p.170] [7 p.244] [8 p.31]. Its loans were 1.57 times total deposits (1.71 times term deposits as printed), the highest of the four on the deposit labels shown in the table [13].

Profit levels differ with size: IDLC printed BDT 1,777m of 'Profit after tax and provision' on loans of BDT 121,986m, IPDC BDT 455.5m on loans of BDT 74,622.0m, and DBH BDT 95 crore (BDT 950m) of net profit after tax on a home-loan portfolio of BDT 4,543 crore [6 p.163] [7 p.295] [8 p.30]. IPDC printed a return on equity of 6.74% and DBH a 'Return on Shareholders' Equity' of 9.78%, against United Finance's 5.92% [7 p.295] [8 p.31] [1 p.211]. IDLC's highlights table does not print ROE.

Balance sheet and audit: unmodified opinions, an 18.45% capital ratio and BDT 2.44bn of income-tax provision under dispute

The auditor for 2025, A. Qasem & Co. (partner ATM Shamim Reza FCA), signed on 28-Apr-2026 [1 p.330]. Its opinion reads: 'In our opinion, accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at 31 December 2025 and its financial performance and cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and Rules and Regulations issued by Bangladesh Bank as explained in Note 2 to the financial statements.' [1 p.326] The key audit matters are measurement of the loan provision, adequacy of the income tax provision, recognition of interest income and IT systems [1 p.326] [1 p.327] [1 p.328]. For 2024 the same firm wrote: 'In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at 31 December 2024' [2 p.257]. The 2022 accounts were audited by Nurul Faruk Hasan & Co. [4 p.39].

Tax: the provision for income tax was BDT 2,437.4m at Dec-2025 and advance corporate tax paid BDT 2,334.2m [1 p.366] [1 p.362]. The auditor notes that the company 'is involved in ongoing tax disputes with the tax authorities at various levels, including the Deputy Commissioner of Taxes (DCT), Appellate Tribunal and the High Court' [1 p.327]. Note 45 states that no final judgment has been received from the Supreme Court on the pending assessments and appeals [1 p.385].

Liquid assets: cash and balances with Bangladesh Bank were BDT 215.5m and balances with banks and financial institutions BDT 3,352.7m at Dec-2025, together BDT 3,568.3m of cash and cash equivalents [1 p.334]. There are no off-balance-sheet guarantees or letters of credit [1 p.332]. Capital expenditure contracted but not incurred was BDT 8.49m for IT hardware [1 p.385]. Of 271 public-interest-entity borrowers sanctioned in 2025, the company obtained audited financial statements for 140 at the time of sanction [1 p.385].

Governance: a 65.3m-share change of ownership in Nov-2024, an acting MD since Apr-2026 and BDT 1.66bn of related-party deposits

Ownership changed in November 2024. On 10-Nov-2024 BSEC consented to the sale and purchase of 65,327,877 shares held by three sponsors and ten shareholding companies, and five corporate directors declared sales of their entire holdings: Lawrie Group Plc (37,422,921 shares), Surmah Valley Tea Co. (15,481,242), Camellia Duncan Foundation (4,855,602), Duncan Brothers (Bangladesh) (1,871,145) and Octavius Steel & Co. of Bangladesh (1,336,510) [9]. Each confirmed completion on 18-Nov-2024, and on 20-Nov-2024 United Securities Limited informed DSE that the buy order for the entire 65,327,877 shares was completed [9].

At Dec-2025 sponsors held 21.84%, directors 18.29%, financial institutions and companies 13.44% and the general public 46.43% [1 p.373]. The directors listed with personal holdings are Najmul Hasan (chairman, 2.49%), Moinuddin Hasan Rashid (4.99%), Mahenoor Sultana Rashid (4.99%), Kutubuddin Akhter Rashid (2.91%) and Khondaker Zayed Ahsan (2.91%); Kayes Khalil Khan is nominated by United Insurance Company Ltd., printed as 'having share of 19.84%', and Ormaan Rafay Nizam by National Brokers Ltd. (2.01%); there are three independent directors [1 p.381]. The company has written to Bangladesh Bank for a waiver from section 10(1) of the Finance Company Act, 2023, which limits individual shareholdings, and states that Bangladesh Bank forwarded the application to the Finance Ministry [1 p.373].

Related parties: note 43.5 lists BDT 1,661.5m of term deposits from directors and their related entities, as listed in note 43.5, at Dec-2025, 13.8% of term deposits (derived) [1 p.384] [13]. The largest are BDT 800.0m from Hasan Mahmood Raja ('Individual related to the Director'), BDT 181.4m from United Engineering And Power Services Ltd. Employees' (Contributory) Provident Fund, BDT 116.0m from National Brokers Limited ('Common Director'), BDT 105.5m each from Khandaker Moinul Ahsan and Khaleda Ahsan and from Akhter Mahmud ('related by shareholding'), and BDT 100.0m from Khulna Power Company Ltd ('Common Director') [1 p.384]. On the asset side, the note lists an investment in preference shares of United Tank Terminal Ltd. ('Common Director') of BDT 112.0m and a lease of BDT 2.1m to United Insurance Company Limited ('Sponsor Shareholder'); note 6.2 carries the United Tank Terminal preference shares at BDT 110.0m [1 p.384] [1 p.355]. Note 43.6 states that related parties are lent to 'as per credit policy of the Company on an arm's length basis' [1 p.385].

Management and corporate actions in the last 24 months, from DSE: name change to United Finance PLC from 6-Jan-2025; move from the B to the A category on 6-Aug-2025 after the 2024 dividend was paid; Bangladesh Bank's in-principle approval on 8-Mar-2026 for an Islamic finance window, followed by a board decision on 30-Mar-2026 to amend the memorandum and articles, subject to an EGM on 17-May-2026 (passed, outcome unknown); and Bangladesh Bank's approval of the managing director's resignation, with Mohammed Abul Ahsan appointed acting managing director from 1-Apr-2026 [9]. The 24-month DSE sweep shows no board approval of a rights issue, merger or capital expenditure programme [9].

What's next: FY2026 results in late April 2027 (inferred), Q1 2027 in mid-May (inferred), LDC graduation 24-Nov-2029

Q3 2026 results were announced on 29-Oct-2026 and are covered above. No board-meeting date for the next results has been notified on DSE [9]. The dates below are inferred from the two most recent precedents, using board-meeting dates, not DSE post dates, except where only post dates exist.

LDC graduation: the UN General Assembly adopted the move of Bangladesh's LDC graduation from 24-Nov-2026 to 24-Nov-2029 on 29-Oct-2026 in New York (30-Oct in Dhaka) [10] [11]. The filings read do not link any of the company's lines to graduation.

Two items have no date in the filings or DSE news: the Finance Ministry's reply on the section 10(1) shareholding waiver, and the outcome of the 17-May-2026 EGM on the Islamic window (passed, outcome unknown) [1 p.373] [9]. Both are left out of the dated table.

Risks: funding cost, classified-loan migration, refinance and related-party funding, and tax disputes

Each risk below is tied to the line it moves, with the 2025 or H1 2026 figure from the filings. Sensitivities are history-based arithmetic, not forecasts.

In 2025 the cost of fund rose 0.87pp and net interest income fell by BDT 144.7m, while the loan charge fell by BDT 63.8m [1 p.211] [1 p.333]. The capital ratio fell 1.36pp in 2025 as risk-weighted assets grew by BDT 1,323.7m and eligible capital by BDT 4.1m [1 p.372].

Key questions: cost of fund, classified loans, rescheduled accounts, payout and the Islamic window

Earnings quality: profit before provision was BDT 451.2m in 2025 against a loan charge of BDT 108.25m, so the charge took 24.0% of pre-provision profit; in 2022 it took 42.2% [13]. Dividend income of BDT 146.4m, taxed at 20%, was 12.1% of total operating income in 2025 (derived) [1 p.377] [1 p.379] [13].

FAQ

What does United Finance do?

It is a Bangladesh Bank-licensed finance company that provides lease finance, term loans, short-term working capital and home loans, funded by term deposits and borrowings; loans were BDT 20,688.8m at Dec-2025 [1 p.337] [1 p.331].

What is United Finance's NPL ratio?

Classified loans were 5.95% of loans at Dec-2025 (BDT 1,231.1m), against 4.98% at Dec-2024 [1 p.211] [1 p.361].

What did the auditor say about the 2025 accounts?

A. Qasem & Co. gave an unmodified opinion that the statements 'give a true and fair view of the financial position of the Company as at 31 December 2025'; no emphasis of matter is printed [1 p.326].

What is the capital adequacy ratio?

18.45% at Dec-2025 against a 10% minimum, with BDT 1,604.2m of surplus capital [1 p.372].

Does United Finance pay a dividend?

Yes: a 10% cash dividend (BDT 1.00 per share) for both 2024 and 2025, paid on 6-Aug-2025 and 4-Aug-2026 (DSE post dates) [9] [1 p.385].

Who owns United Finance?

At Dec-2025 sponsors held 21.84% and directors 18.29%; United Insurance Company Ltd. nominates one director and is printed as holding 19.84%; in Nov-2024 five corporate directors, including Lawrie Group Plc, completed sales of their entire holdings [1 p.373] [1 p.381] [9].

Which results does this report use?

Audited statements for 2021-2025 from the 2022-2025 annual reports, printed highlights for 2020, the unaudited H1 2026 statements, and the Q1 and Q3 2026 figures announced on DSE.

Sources

1. United Finance PLC Annual Report 2025 (audited statements, year to 31-Dec-2025) · link · accessed 2026-11-01
2. United Finance PLC Annual Report 2024 (audited statements; five-year highlights 2020-2024) · link · accessed 2026-11-01
3. United Finance Limited Annual Report 2023 (audited statements, 2023 and restated 2022) · link · accessed 2026-11-01
4. United Finance Limited Annual Report 2022 (audited statements, 2022 and 2021) · link · accessed 2026-11-01
5. United Finance PLC unaudited financial statements, half year to 30-Jun-2026 · link · accessed 2026-11-01
6. IDLC Finance PLC Integrated Annual Report 2025 (peer) · link · accessed 2026-11-01
7. IPDC Finance PLC Annual Report 2025 (peer) · link · accessed 2026-11-01
8. DBH Finance PLC Annual Integrated Report 2025 (peer) · link · accessed 2026-11-01
9. DSE news archive for UNITEDFIN, 31-Oct-2024 to 1-Nov-2026 (results, dividends, board meetings, ownership, rating, management) · link · accessed 2026-11-01
10. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
11. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
12. AnalystBro price data (TradingView feed): DSE:UNITEDFIN daily and weekly bars to 1-Nov-2026 · link · accessed 2026-11-01
13. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01