ICB returns to profit in Q2 on higher dividend income

The state-run Investment Corporation of Bangladesh (ICB) has declared a profit of Tk 257 million on consolidated basis for the second quarter through December FY24.
The income shows a 2 per cent decline compared to the same quarter a year ago.
But if the six-month results were taken into consideration, the investment bank was still in the red for the first half of FY24, with a loss of TK 2.11 billion.
The ICB returned to profit in Q2 for a jump in dividend income from Tk 310 million in Q1 to Tk 1.71 billion in the quarter through December, said ICB Chairman Suborna Barua.
The company also did not keep any provision this time.
The company is yet to release a detailed financial report. Its website was also not accessible after the earnings disclosure on Tuesday.
It bore an average 22 per cent operating cost for 14 years to FY23, which brought down annual profit from Tk 5 billion in FY11 to just Tk .78 billion in FY23.
The ICB's interest expense grew at a much faster pace every year between FY10 and FY23, compared to the growth of interest income. As a result, interest expenditure ballooned to nearly double the operating income by the end of FY23.
If all the expenses and earnings are taken into consideration, the overall cost was almost equal to its total income in FY23.
Against the backdrop of the high interest rate regime that began in July and is expected to continue to tame inflation, the burden of interest payment will only mount.
Md. Abul Hossain, managing director of the ICB, earlier told the FE that, "We need at least Tk 50 billion [from the BB] to operate smoothly"
The ramification of the floor price removal on ICB's financial health will become clearer in the next quarter.
Meanwhile, a subsidiary company of ICB, ICB Asset Management has declared dividends for its 10 mutual funds for FY23.
Dividends for First ICB Unit Fund will be disbursed at Tk 0.5 per unit, for Second ICB Unit Fund Tk 1.2 per unit, for Third ICB Unit Fund Tk 1 per unit, for Fourth ICB Unit Fund Tk 1 per unit, for Fifth ICB Unit Fund Tk 1 per unit, for Sixth ICB Unit Fund Tk 1.1 per unit, for Seventh ICB Unit Fund Tk 1.2 per unit, for Eight ICB Unit Fund Tk 1 per unit, for ICB AMCL Second NRB Unit Fund Tk 1 per unit and for ICB AMCL Shotoborsho Unit Fund Tk .55 per unit.

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