Uttara Bank PLC reported a record profit of Tk 4.78 billion in 2024, driven by higher net interest income following the introduction of market-based interest rate.
The private commercial bank posted a 51-percent growth in consolidated profit year on year to Tk 4.78 billion in 2024, as against Tk 3.17 billion in 2023.
As a result, the consolidated earnings per share (EPS) stood at Tk 5.79 in 2024, up from Tk 3.84 the previous year, according to the price sensitive information published on the bank's website on Tuesday.
The bank's standalone net profit also grew 53 per cent year on year to Tk 4.88 billion, as against Tk 3.20 billion in 2023.
However, the investment income was not as overwhelming during the year, but net interest income, the core source of income for the bank, supported the lender's impressive earnings growth despite an adverse business climate engendered by inflationary pressure.
This was due to the bank's ability to control its cost of deposits, expand its performing loan book, and earn substantially from net interest.
Based on the record profit, the bank's board of directors recommended a 35 per cent dividend (17.5 per cent cash and 17.5 per cent stock) for 2024 at a board meeting held on Tuesday.
This is the highest dividend after 2009, when the bank paid a 50 per cent stock dividend.
The dividend declaration reflects the bank's commitment to delivering sustainable financial results to its shareholders while maintaining a strong financial position, said an official of the company, requesting not to be named.
The board of directors also adopted the annual audited financial statements at the same meeting.
The annual general meeting (AGM) is scheduled for May 12, where shareholders will approve the recommended dividends and financial report. The record date for eligibility is set for April 20.
The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, rose to Tk 7.70 per share in 2024, as against negative Tk 12.83 the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk32.07 per share in 2024, up from Tk 27.59 in 2023.
The bank is yet to disclose the details of the annual financial statements such as interest income, net interest income and investment income. Its interest income for nine months through September last year jumped more than 38 per cent year on year to Tk 14.54 billion.
Its nine months' net interest income also soared 53 per cent to Tk 8.53 billion while investment income grew more than 4 per cent to Tk 2.72 billion.
Uttara Bank's shares closed at Tk 25.10 on the Dhaka Stock Exchange on Tuesday, rising 0.40 per cent over the previous day.
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