AB Bank makes hefty profit in six months
Thursday, 26 July 2007
Refayet Ullah Mirdha
The Arab Bangladesh (AB) Bank, whose credit rating has been improved due to overall excellence in banking business, made a hefty net profit worth Tk 766.851 million during January-June 2007 period.
The AB Bank that also operates Islamic banking is listed on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
According to its un-audited half-yearly financial statement, net profit of the bank was worth Tk 272.189 million after deduction of tax during the same period of the previous fiscal.
The bank statement said the bank's total profit was worth Tk 1.02 billion before the tax in January-June, 2007 period, which was Tk 402.189 million in the same period of the last year.
The Earning Per Share (EPS) of the bank has been recorded at Tk 134.13 during, compared with Tk 47.61 previously, showing promising prospects of the banking company.
Share premium of the bank was created in the year 2002 as per gazette notification of the Securities and Exchange Commission (SEC).
The total paid-up capital of the bank stood at Tk 571.740 million as of January-June 30, 2007. The statutory reserve was Tk 772.868 million and other reserve was Tk 683.597 million and retained earning was Tk 527.422 million.
The total shareholders' equity reached Tk 3.32 billion in January-June 2007 period compared with Tk 2.58 billion during the same period of the last year.
The total liabilities and shareholders' equity was Tk 55.41 billion in January-June period this year, compared to Tk 47.99 billion in the corresponding period of the last year, the half yearly financial statement said.
AB Bank is mainly involved in financing agriculture, large and medium scale industries, working capital, export business, commercial lending, term loan in small and cottage industry, consumer credit, Q-cash overdraft (Credit Card), urban housing and others.
The half-yearly financial statement said the bank has achieved BBB+ in credit rating in 2006, which was BBB in 2005.
Credit Rating Information and Services Limited (CRISL) has assigned BBB+ rating in the Long Term and ST-4 in the Short Term to Arab Bangladesh Bank Limited, the financial statement said.
The rating was assigned to the AB Bank by the CRISL on the basis of satisfactory market share, satisfactory non-funded business, diversified product base and stable sources of fund.
The annual report-2005 of the bank said since the introduction of the bank's Merchant Banking Wing (MBW) in 2003, it registered tremendous growth in terms of both income and profitability.
The MBW offers various schemes like port folio management, issue management, corporate advisory services and underwriting, the annual report 2005 said.
During the year 2005, MBW recorded a net profit worth Tk 137.83 million registering a growth of 64 per cent over that of the last year, the annual report said.
The bank's management said it has a plan to expand its MBW banking facilities in Dhaka and across the country as they received a large response from the operation of such banking.
AB Bank launched its Islami banking business at the end of the year 2004, which is being run by a Shariah Council.
The annual report said at the AB Bank, corporate governance is viewed as the culture for conducting business where bank acts as a "trustee" for depositors' money and also deals with various stakeholders on the same plane.
The board of directors of the bank encourages corporate governance at every plausible level to bring in transparency, fairness, accountability, responsibility and professionalism in business deliverance, the report said.
The chairman of the bank in the annual report 2005 said: "We intend to ensure the trust and confidence of the customers through focused customer orientation, quality of service and state-of-the-art technology, Transparency in dealings and adopting the best practices of corporate governance."
The last annual general meeting (AGM) of the bank was held on June 11, 2006, the company source said. The next AGM of the bank is scheduled to be held on September 4, 2007.
On Wednesday's trading session the AB Bank, an 'A' category share on the DSE, was traded at Tk 2102.75, registering an increase at 1.69 per cent from previous rate.
To fulfil customer expectations, the management of the bank likes to turn it into a world-class bank so that all banking related services could be provided efficiently and effectively.
The bank has a plan for electronic fund transfer, electronic L/C (letter of credit) opening, mobile ATM service, utility bill payment through ATM cards, one stop service, corporate banking and real time banking.
The Arab Bangladesh (AB) Bank, whose credit rating has been improved due to overall excellence in banking business, made a hefty net profit worth Tk 766.851 million during January-June 2007 period.
The AB Bank that also operates Islamic banking is listed on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
According to its un-audited half-yearly financial statement, net profit of the bank was worth Tk 272.189 million after deduction of tax during the same period of the previous fiscal.
The bank statement said the bank's total profit was worth Tk 1.02 billion before the tax in January-June, 2007 period, which was Tk 402.189 million in the same period of the last year.
The Earning Per Share (EPS) of the bank has been recorded at Tk 134.13 during, compared with Tk 47.61 previously, showing promising prospects of the banking company.
Share premium of the bank was created in the year 2002 as per gazette notification of the Securities and Exchange Commission (SEC).
The total paid-up capital of the bank stood at Tk 571.740 million as of January-June 30, 2007. The statutory reserve was Tk 772.868 million and other reserve was Tk 683.597 million and retained earning was Tk 527.422 million.
The total shareholders' equity reached Tk 3.32 billion in January-June 2007 period compared with Tk 2.58 billion during the same period of the last year.
The total liabilities and shareholders' equity was Tk 55.41 billion in January-June period this year, compared to Tk 47.99 billion in the corresponding period of the last year, the half yearly financial statement said.
AB Bank is mainly involved in financing agriculture, large and medium scale industries, working capital, export business, commercial lending, term loan in small and cottage industry, consumer credit, Q-cash overdraft (Credit Card), urban housing and others.
The half-yearly financial statement said the bank has achieved BBB+ in credit rating in 2006, which was BBB in 2005.
Credit Rating Information and Services Limited (CRISL) has assigned BBB+ rating in the Long Term and ST-4 in the Short Term to Arab Bangladesh Bank Limited, the financial statement said.
The rating was assigned to the AB Bank by the CRISL on the basis of satisfactory market share, satisfactory non-funded business, diversified product base and stable sources of fund.
The annual report-2005 of the bank said since the introduction of the bank's Merchant Banking Wing (MBW) in 2003, it registered tremendous growth in terms of both income and profitability.
The MBW offers various schemes like port folio management, issue management, corporate advisory services and underwriting, the annual report 2005 said.
During the year 2005, MBW recorded a net profit worth Tk 137.83 million registering a growth of 64 per cent over that of the last year, the annual report said.
The bank's management said it has a plan to expand its MBW banking facilities in Dhaka and across the country as they received a large response from the operation of such banking.
AB Bank launched its Islami banking business at the end of the year 2004, which is being run by a Shariah Council.
The annual report said at the AB Bank, corporate governance is viewed as the culture for conducting business where bank acts as a "trustee" for depositors' money and also deals with various stakeholders on the same plane.
The board of directors of the bank encourages corporate governance at every plausible level to bring in transparency, fairness, accountability, responsibility and professionalism in business deliverance, the report said.
The chairman of the bank in the annual report 2005 said: "We intend to ensure the trust and confidence of the customers through focused customer orientation, quality of service and state-of-the-art technology, Transparency in dealings and adopting the best practices of corporate governance."
The last annual general meeting (AGM) of the bank was held on June 11, 2006, the company source said. The next AGM of the bank is scheduled to be held on September 4, 2007.
On Wednesday's trading session the AB Bank, an 'A' category share on the DSE, was traded at Tk 2102.75, registering an increase at 1.69 per cent from previous rate.
To fulfil customer expectations, the management of the bank likes to turn it into a world-class bank so that all banking related services could be provided efficiently and effectively.
The bank has a plan for electronic fund transfer, electronic L/C (letter of credit) opening, mobile ATM service, utility bill payment through ATM cards, one stop service, corporate banking and real time banking.