Undivided Profits Law and Legal Definition

Undivided profit is a bank term for retained earnings. The undivided profit is shown on a bank's balance sheet representing profits that are not paid out as dividends or transferred to the bank's surplus account. It is bank profits from current and prior years. The profit is not distributed to shareholders as dividends. When the account grows, round amounts is periodically transferred to the surplus account. It is corporate earnings accumulated over time.