Despite the manifold challenges, in the global as well as domestic economy, caused by the

COVID Pandemic, we have been able to maintain positive growth in several business
parameters. Glimpses of performances of UCB in 2020:
In 2020, UCB disbursed loans and advances of BDT 2363 crore to its customers against
Bangladesh Bank determined target of BDT 3264 crore under different stimulus packages
announced by the Government to offset the COVID hit stagnancy of the country’s economy

Provision on loans and advances

In 2019
Bangladesh Bank: As per BRPD circular No.15 (27 September 2017), BRPD circular No.16
(18 November 2014), BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27
December 2012), BRPD circular No. 05 (29 May 2013) and BRPD circular No.1 (20
February 2018) a general provision at 0.25% to 5% under different categories of unclassified
loans (good/standard loans) has to be maintained regardless of objective evidence of
impairment. Also, specific provision for sub-standard loans, doubtful loans and bad losses
have to be provided at 5%, 20%, 50% and 100% respectively for loans and advances
depending on time past due. Again, as per BRPD circular no. 10 dated 18 September 2007
and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is required to
be provided for all off-balance sheet exposures. Such provision policies are not specifically in
line with those prescribed by IFRS 9.

In 2020
Bangladesh Bank: As per BRPD circular No.15 (27 September 2017), BRPD circular No.16
(18 November 2014), BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27
December 2012), BRPD circular No. 05 (29 May 2013), BRPD circular No.1 (20 February
2018) a general provision at 0.25% to 5% under different categories of unclassified loans
(good/standard loans) has to be maintained regardless of objective evidence of impairment,
BRPD circular No.03 (April 21 2019), BRPD Circular Letter No. 17 (September 28
2020),BRPD Circular Letter No. 56 (December 10 2020), BRPD Circular Letter No. 59
(December 30 2020), and BRPD Circular Letter No. 63 (December 31 2020). Also, specific
provision for substandard loans, doubtful loans and bad losses have to be provided at 5%,
20%, 50%, 100% respectively for loans and advances depending on time past due and
additional special general provision-COVID-19 at 1%. Again, as per BRPD circular no. 10
dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a general
provision at 1% is required to be provided for all off-balance sheet exposures. Such provision
policies are not specifically in line with those prescribed by IFRS 9.
Impact of COVID-19
On 11 March 2020 the World Health Organization (WHO) declared a global pandemic due to
Corona Virus related respiratory disease, commonly known as COVID-19. To contain the
spread of this disease, along with many other countries of the world, the Government of
Bangladesh has also taken a number of measures such as declaration of general holiday,
enforcement of lock down, social distancing, etc. As a result of these measures, all business
and economic activities in the country have been adversely affected and this has also affected
the Company. Although the business operation and profitability of the Company have been
impacted by COVID-19, but due to the constantly changing nature of the situation and lack of
certainty at present regarding how long this situation will prevail, the potential impact of
COVID-19 related matters on the Company’s operation and financial results cannot be
reasonably assessed. The management of the Company assessed the going concern and found
no uncertainty regarding this for the upcoming 12 months due to COVID-19. Assessment of
COVID-19 in relation to the following areas and the conclusion reached thereof is given
below:

Margin loan
One of the principal activities of the company is providing corporate advisory service under
which the company provides margin loan to the clients. Although lockdown and restriction in
movements imposed due to COVID-19 has affected margin loan in second quarter of 2020,
the Company has managed to recover in the subsequent quarters.
Investment in shares
Because of the pandemic situation, optimal investment opportunities have shrinked. Despite
that the company has made some investment in profitable shares and mutual fund.
Others
Management of the Company has assessed other areas of operations and found no significant
impact of COVID-19 thereon.
Brac
Going Concern
The impact on the Company arising from the uncertainty of the recent COVID-19 outbreak
has been considered by the Directors:
 Management have considered updated financial forecasts. Based upon the
information available, the directors consider that the Company has
sufficient liquidity to continue in business for at least the next 12 months
as a going concern.
 The directors have reviewed the assets of the business and do not believe
there to be any impairments arising as a result of the pandemic.
 To date there has been no material impact on the Company arising from
the COVID-19 outbreak and the directors continue to monitor the situation
very closely.
 In addition, the directors do not believe there will be any material impact
on the Company’s ability to remain a going concern arising from the UK’s
exit from the European Union

Other expenses
Particulars 2020 2019
Covid prevention expense 48,044,586 -