Despite an increase in interest income, and a significant decline in provisioning ratio, AB Bank failed to ensure growth in profit in the calendar year 2022 because the lender had to pay off more to its depositors and against borrowings.
The private commercial lender’s earnings per share (EPS) in 2022 remained unchanged at Tk 0.83. It also had reported the same earnings per share in the year before.
The listed bank’s financial 2022 financial statement shows that its interest income, or income against investment, grew up by 5.06 per cent to Tk 2,146 crore, much higher than the figure of Tk 2,038 crore in the previous year.
Meanwhile, the bank’s provisioning ratio against loans fell by 37 per cent to Tk 273 crore in 2022 from Tk 433 crore a year earlier.
Though the lender’s interest income grew up significantly it was reflected in its earnings because it had to pay of 8 per cent more to depositors and against its borrowings last year than that of the previous year. The bank had spent Tk 1708 crore in purpose of paying off depositors and other borrowings in 2022, which was Tk 1583 crore in 2021.
But a significant information is that the lender’s provisioning against loans in 2022 was the lowest since 2018.
The bank had kept Tk 273 crore in provisions against loans in 2022, much lower that the provision of Tk 433 crore in the year before.
The private commercial bank’s provision was same at Tk 514 crore in the years 2020 and 2019.
This provision was maintained against the loans of the bank itself and its associate institutions.
Of the amount, Tk 214 crore was kept against the loan of AB Bank, while Tk 6.50 crore against the loans of AB Investment Limited, and Tk 36 lakh against the loans of AB Securities.
As per its first quarterly unaudited financial report, the lender’s profits fell by 28 per cent year-on-year in the January–March quarter this year.
Its consolidated earnings per share (EPS) stood at Tk 0.13 for the March quarter of 2023, down from Tk 0.18 for the same quarter a year ago.
During the January-March quarter this year, its consolidated profit was Tk 11.19 crore against Tk 15.49 crore in the same quarter of the previous year.
AB Bank on May 2 proposed a 2 per cent stock dividend for the year ending in December 2022. The Bangladesh Securities and Exchange Commission (BSEC) on May 25 approved the bank’s declared stock dividend.
In 2021, the bank gave a 2 per cent cash dividend and 3 per cent stock dividend to its shareholders.
Sponsors and directors together owned 31.67 per cent of of the company’s total shares, while the government held 0.57 per cent, institutions 22.82 per cent, foreign investors 0.79 per cent, and the general public 44.15 per cent till May this year.
On the Dhaka Stock Exchange, AB Bank shares closed at Tk 9.70 each on Thursday.
