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BRAC Bank profit surges 32pc

FE REPORT | April 13, 2023 00:00:00

BRAC Bank has reported a significant increase in its consolidated net profit after tax for the calendar year 2022, marking two consecutive years of positive growth.

The bank's consolidated net profit after tax grew by 32 per cent to Tk 6.12 billion for 2022, compared to Tk 4.65 billion in the previous year.

This achievement follows a gradual decline in consolidated net profit after tax in 2020 and 2019, which were lower than the bank's net profit after tax of Tk 5.67 billion in 2018.

BRAC Bank reported a consolidated net profit after tax of Tk 4.04 billion in 2020 and Tk 4.58 billion in 2019.

The consolidated earnings per share (EPS) of the BRAC Bank stood at Tk 4.02 for the year 2022 against Tk 3.65 reported for the previous year.

The company saw a steep growth in operating cash flow for the year 2022 compared to the previous year.

The consolidated net operating cash flow per share (NOCFPS) stood at Tk 25.14 in 2022 against Tk 2.49 reported for the year 2021.

The company's board of directors has recommended a 7.50 per cent cash and 7.50 per cent stock dividend for the year 2022.

The bank has recommended the stock dividend to strengthen its capital base to support business growth.

In a disclosure, the company said bonus shares are not declared from the capital reserve or revaluation reserve or any unrealised gain or out-of-profit earned prior to incorporation of the company or through reducing paid-up capital or through doing anything so that the post-dividend retained earnings become negative or a debit balance.

The company declared the same amount of dividend (15 per cent) in the previous four years.

It declared 7.50 per cent cash and 7.5 per cent stock in 2021, 10 per cent cash and 5.0 per cent stock in 2020, 7.5 per cent cash and 7.5 per cent stock in 2019 and 15 per cent stock in 2018.

Apart from recommending dividends, the company has informed that it would increase authorised capital to Tk 50 billion from Tk 20 billion, subject to the approval of shareholders and regulatory bodies.

The share price of the BRAC Bank came down to the floor price of Tk 38.50 on August 24, 2022, and later the share price rose to Tk 38.60 for one session only executed on August 31.

Afterwards, the share price remained stuck at the floor price till Wednesday on Dhaka Stock Exchange (DSE).

BRAC Bank, presently an 'A' category company, was listed with stock exchanges in 2007.

The company's sponsor-directors hold 46.24 per cent shares, institutes 13.26 per cent, foreigners 33.42 per cent and general investors 7.08 per cent as on March 31, 2023.

The foreign stake at the company declined from Tk 37.88 per cent to 33.42 per cent between December 31, 2021, and March 31, 2023.

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