DBH Finance has recommended a 15 per cent cash dividend for the year ended December 2025, maintaining a steady payout despite a marginal decline in annual profit.
The leading non-bank financial institution (NBFI), which exclusively focuses on home loans, reported a profit of Tk 951 million for the year, down from Tk 1 billion in the previous year, marking a 5.6 per cent year-on-year decline.
Earnings per share dropped to Tk 4.69 in 2025 from Tk 4.97 (restated) in the previous year, according to a stock exchange filing on Monday.
Despite lower earnings, the company strengthened its balance sheet position during the year. Net asset value (NAV) per share increased to Tk 49.55 in 2025 from Tk 46.33 a year earlier, reflecting higher retained earnings and stronger equity backing.
The company also reported a significant improvement in cash generation from core operations. Net operating cash flow per share (NOCFPS) rose sharply to Tk 7.46 in 2025 from negative Tk 0.37 in the previous year.
The sharp recovery in cash flow is particularly significant for the institution, as it indicates improved loan recovery, stronger interest collection, and healthier liquidity management.
Based on the reported EPS of Tk 4.69, the recommended cash dividend of Tk 1.50 per share represents a payout ratio of around 32 per cent, which analysts consider sustainable under the current earnings structure.
In 2024, the company paid a 15 per cent cash dividend along with a 2 per cent stock dividend to shareholders.
The company is yet to disclose detailed annual financial statements for 2025. Its nine-month net interest income dropped 16 per cent year-on-year to Tk 1 billion, while investment income jumped 48 per cent year-on-year to Tk 821 million through September last year.
However, investors reacted negatively to the latest declaration, as the stock declined 2.61 per cent to Tk 37.30 per share on Monday on the Dhaka Stock Exchange.
The annual general meeting (AGM) will be held virtually on June 29, while the record date for dividend entitlement has been fixed for June 4.
Strong Q1 rebound in 2026
Despite the annual profit decline, DBH Finance posted a 26 per cent year-on-year growth in profit to Tk 196 million in the January-March quarter of 2026, supported by higher net interest income.
The company's net interest income jumped 31 per cent year-on-year to Tk 504 million, while operating income rose 8 per cent year-on-year during the first quarter.
Non-performing loans (NPLs) remained around 1 per cent of the total loan portfolio - one of the lowest ratios in the industry. Lower provisioning requirements against bad loans also helped the company secure higher profitability.
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