Bangladesh Finance Limited (BD Finance) has declared 12 per cent dividend for its shareholders for the year 2021.
The listed financial institute’s board of directors has recommended 6 per cent cash and 6 per cent stock dividend for the year ended December 31, 2021.
BD Finance will hold an annual general meeting virtually on March 31 to approve the recommended dividend, according to a news filing with the Dhaka Stock Exchange (DSE) on Wednesday.
The company also informed that it recommended stock dividend to increase the capital base and to support the growth of the organisation. The company has declared a stock dividend out of the profit.
Bonus share has not been declared from the revaluation or any unrealised gain or through reducing paid up capital so that the post dividend retained earnings will have a negative impact.
The company has further informed that the declared 6 per cent stock dividend will be disbursed subject to consent from Bangladesh Securities and Exchange Commission. The new record date for entitlement of Stock Dividend will be notified later after getting approval from BSEC.
Financial performance
The company, a concern of Anwar Group, gained consolidated profit after tax Tk 32.38 crore for the year ended December 31, 2021, as against Tk 31.46 crore for the same period of the previous year. Profit increased 3 per cent.
On solo basis, the company’s profit after tax increased 19 per cent to Tk 26.82 crore for the last year. The company’s net interest income increased 11 per cent and 3.58 per cent on a consolidated and solo basis respectively for 2021.
Bangladesh Finance Managing Director and CEO Md Kyser Hamid told The Business Post, “Since our subsidiaries performed well and give cash dividends, it offset from both balance sheet as inter-company transactions, basically, our profitability increased.”
NPL declined
Declining Non-Performing Loans (NPL) helped the company to make a good financial performance. Its NPL decreased to 2.54 per cent from 3.22 per cent in last year. In absolute amount, NPL have decreased from Tk 41 crore to Tk 34 crore.
The company's managing director told The Business Post about the NPL downgrade, “We have started strict action and process against all old defaulter customers and able to sell some mortgaged property and collected cash.”
