First Finance incurs net loss of Tk 2.19b in 2021

First Finance, a non-banking financial institution has reported net loss over Tk 2.19 billion for the year ended on December 31, 2021 while the company's retained earnings is Tk 3.25 billion in negative.
Its financial statements showed earnings per share (EPS) is Tk 18.47 in negative and net assets value per share (NAV) Tk 14.32 also in negative for the year ended December 31, 2021.
The listed 'Z' category non-bank financial institution (NBFI), also incurred a net loss of over Tk 501 million in 2020.
Accordingly, the company did not declare dividends for the last two years -2020 and 2021.
"All these conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern," according to its auditor report posted on the Dhaka Stock Exchange (DSE) website on Monday.
The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, opined the report.
Despite all these difficulties, First Finance is trying to recover from the situation. To reach desired goals, they have planned to procure more new fresh deposits and give emphasis on recovery from classified loan, lease and advances.
But there is a material uncertainty related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business, the auditor report opined.
Besides, the company has a capital adequacy ratio of negative 18.73 per cent which is far below the minimum 10 per cent threshold as set by Bangladesh Bank, it added.
Bangladesh Securities & Exchange Commission (BSEC) also held meetings with the financially weak NBFI and advised for collection from classified loan, lease, and advances.
The financial institution, which was listed on the DSE in 2003, also incurred a net loss of Tk 488.40 million in the first half (H1) of this year for January-June 2022.
Following the company's weak financial condition, its share price closed at Tk 5.50 each Monday, far below from the face value. Its shares traded between Tk 4.90 and Tk 9.90 in the last one year.
The company disbursed 2.0 per cent cash dividend last in 2019.
The company's authorised capital is Tk 5.0 billion and paid-up capital is Tk 1.18 billion while total number of securities is 118.54 million.
Sponsor-directors own 41.31 per cent stake in the company while institutional investors own 19.57 per cent and the general public 39.12 per cent as on June 30, 2022, the DSE data showed.

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