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Federal Insurance, a listed company of Dhaka Stock Exchange (DSE), witnessed 53 per cent increase in its earnings in the second quarter (April-June’21) of current year.
In an un-audited disclosure to the DSE, the company also reported earnings per share (EPS) of Tk. 0.23 for the Q2 against Tk. 0.15 of the corresponding quarter of the previous year.
At the same time, the company’s half yearly earnings increased by 31 per cent.
Its EPS stood at Tk 0.55 in January-June,21 period against Tk 0.42 of the same period of previous year.
Besides, the net operating cash flow (NOCFPS) of the company increased by 126 per cent during the period to stand at Tk 1.38.
It was Tk 0.61 in the first half of 2020. Its net asset value (NAV) per share stood at Tk 12.95 on June 30 this year, which was Tk 12.40 on December 31, 2020.
Sheikh Mohammad Anwar Uddin, company secretary of Federal Insurance, attributed the rise in earnings to lowered commission charge.
The commission charge reduction helped the company cut operating expenses, what finally translated into income rise, he added.
The Insurance Development and Regulatory Authority (IDRA) had earlier reduced commission charge for the insurance companies by 15 per cent considering the pandemic-induced adversities. The board of directors of Federal Insurance recommended 10 per cent -- 5 per cent cash and 5 per cent stock -- dividend for the last year. In the previous year, it declared 5 per cent cash dividend.
The ‘B’ category company was listed on the DSE in 1995. Its paid-up capital is Tk 67.65 crore, while the authorised capital Tk 100 crore and surplus reserve Tk 10.62 crore.
On Thursday, the week’s last trading day, the price of Federal Insurance’s share increased by 2.11 per cent to Tk 38.70.
The price was fluctuated from Tk 14.20 to Tk 51.50 last year.
