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ICB Islamic Bank, a junk stock, was back in black in the second quarter (Q2) after six years as it posted a rise in earnings during the period.
The bank's earnings per share (EPS) was Tk 0.15 for April-June 2022 as against Tk (0.17) in the same period a year earlier, said the company in a filing with the Dhaka Stock Exchange on Sunday.
Nobody from the bank was available to comment about the positive EPS.
This is for the first time the company’s EPS witnessed positive earnings after Q2 of 2016 when it was negative Tk 0.07. The bank’s EPS stood at negative Tk 0.23 in Q2 of 2020, which was the biggest ever decline. The bank's loss per share in Q2 Tk 0.15 in 2017, Tk 0.18 in 2018, and Tk 0.15 in 2019.
The bank's income was significantly impacted by the business closures caused by the pandemic, according to the bank’s latest financial report.
ICB Islamic Bank has deposits worth Tk 1,158 crore. Of the figure, Tk 846 crore were invested, Tk 361 crore categorized as defaulted loans, which is 57 per cent of the total disbursed loans, according to the report.
The amount of uncollectible "bad" loans from the total defaults is Tk 357 crore. The bank made its stock market debut in 1990 and raised Tk 1.87 crore through IPO.
On Sunday, the bank’s share price rose 10 per cent to Tk 5.5 on the Dhaka Stock Exchange.
The bank was listed in the capital market in 1990. After raising Tk 1.87 crore through IPO, the bank raised Tk 36 crore from the capital market by issuing a total of 3.69 crore shares through right offer in 1993 and 2003.
In 2008, Swiss ICB Financial Group Holdings AG ICB.L took over troubled Oriental Bank after it had made the highest bid to buy 50.1 percent of the bank for $51 million. Oriental Bank, which suffered severe capital shortages and bad loans, was taken over by the central bank in June 2006.
Later, the bank was renamed ICB Islamic Bank Limited.
