Impact of Taxation on the Profitability of Commercial Bank: A study on United Commercial Bank PLC

Abstract

Executive Summary This internship report analyzes the Impact of Taxation on the Profitability of Commercial Bank: A study on United Commercial Bank PLC during the period from 2020-2024. The banking industry plays a significant role in the economic development of Bangladesh, and taxation is one of the major factors influencing banking profitability. The report uses secondary financial data collection from annual reports of UCB PLC. Several profitability indicators such as ROA, ROE, Net Profit Margin and Effective Tax Rate (ETR) were analyzed to evaluate the relationship between taxation and profitability of UCB PLC, particularly during 2024 when effective tax rate increased significantly and profitability ratios declined sharply. The report concludes that balanced taxation policies and effective tax management are important for maintaining sustainable profitability in commercial banks. The report concludes that balanced taxation policies and effective tax management are important for maintaining sustainable profitability in commercial banks.