FE Report
The board of directors of 16 banks, out of 30 listed banks, declared lower dividends for 2017 than that of the previous year as the profit margins declined due to huge provisioning.
Only five banks declared higher dividends than that of the previous year while seven declared similar dividends and two other no dividends for 2017, according to statistics available with the Dhaka Stock Exchange (DSE).
Dutch-Bangla Bank came up with the highest dividend - 30 per cent cash - for its shareholders. The bank had also disbursed similar dividend in the previous year.
BRAC Bank is the second highest in terms of dividend declaration as it declared 25 per cent stock dividend for the year 2017. In 2016, the bank paid 10 per cent cash and 20 per cent stock dividends.
The state-run Rupali Bank recommended 24 per cent stock dividend, the highest dividend in its history. In 2016, the bank disbursed 10 per cent stock dividend.
The bank's consolidated earnings per share (EPS) stood at Tk 1.98 for the year ended on December 31, 2017 as against minus Tk 3.99 in the previous year.
"The income increased by Tk 3.88 billion and expenditure decreased by Tk 2.09 billion in 2017 than the year 2016. As a result, profitability increased remarkably in 2017," the bank said in a statement.
The City Bank also declared a total of 24 per cent dividend (19 per cent cash and 5.0 per cent stock) last year. In 2016, the bank disbursed 24 per cent cash dividend.
It was followed by Jamuna Bank, which recommended 22 per cent stock dividend for the year 2017. The bank paid 20.50 per cent cash dividend in 2016.
Mercantile Bank also declared 22 per cent dividend (17 per cent cash and 5.0 per cent stock) for last year. In 2016, the bank disbursed 15 per cent cash and 5.0 per cent stock dividend.
Trust Bank followed next as the bank declared 20 per cent cash dividend for the year 2017. It paid 15 per cent cash and 10 per cent stock dividends in 2016.
Eastern Bank also declared 20 per cent cash dividend in 2017. In 2016, the bank paid 20 per cent cash and 5.0 per cent stock dividend.
Uttara Bank declared 20 per cent cash dividend in 2017. The bank also paid 20 per cent cash dividend in 2016.
ONE Bank also recommended 20 per cent dividend (15 per cent cash and 5.0 per cent stock) for the year ended on December 31, 2017. In 2016, the bank disbursed 13 per cent cash and 10 per cent stock dividend.
Prime Bank declared 7.0 per cent cash and 10 per cent stock dividends for the year ended on December 31, 2017. In 2016, the bank disbursed 16 per cent cash dividend.
Al-Arafah Islami Bank declared 10 per cent cash and 5.0 per cent stock dividend in 2017. In 2016, the bank disbursed 20 per cent cash dividend.
NCC Bank recommended 13 per cent cash dividend in 2017. In 2016, the bank paid 16 per cent cash dividend.
Bank Asia, Dhaka Bank and Mutual Trust Bank recommended 12.50 per cent stock dividends each for the year 2017 against 12 per cent stock, 10 per cent cash and 5.0 per cent stock and 15 per cent stock dividends respectively in 2016.
Exim Bank recommended 12.50 per cent cash dividend while IFIC Bank recommended 12 per cent stock dividend in 2017.
First Security Islami Bank, Pubali Bank, Shahjalal Islami Bank, Social Islami Bank and Standard Bank recommended 10 per cent stock dividend each.
Islami Bank and UCB declared 10 per cent cash dividends each for the year ended on December 31, 2017.
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