Home ›› 17 Feb 2022 ›› Stock
Bangladesh Finance Limited formerly known as BD Finance has declared a 12 percent dividend for its shareholders for 2021.
Its board recommended 6 per cent cash and 6 per cent stock dividends for the year ended December 31, 2021, said the financial institution in a filing with the Dhaka Stock Exchange on Wednesday.
To approve the recommended dividend, the company will arrange a virtual annual general meeting on March 31 and set March 9 as record date for the entitlement of shares.
The stock dividend was recommended to increase the capital base and to support the growth of the organisation, said the company.
Bonus share has not been declared from the revaluation or any unrealised gain or through reducing paid-up capital because the post dividend retained earnings will have a negative impact.
Bangladesh Finance, a subsidiary of Anwar Group logged consolidated profit after tax Tk 32.38 crore in 2021, posting a rise of 3 per cent from Tk 31.46 crore recorded in the same period a year ago.
“Since our subsidiaries performed well and gave cash dividends, it offset from both balance sheets as inter-company transactions and thus our profitability increased,” Bangladesh Finance Managing Director and CEO Md Kyser Hamid told The Business Post.
Declining non-performing loans (NPL) helped the company make a good financial performance. Its NPL decreased to 2.54 per cent from 3.22 per cent during the period. In absolute terms, NPL has decreased from Tk 41 crore to Tk 34 crore.
About the falling NPL, Hamid said, “We took some strict measures against defaulted customers as we cashed after liquidating some mortgaged property.”
