ICB profit exceeds Tk100cr mark after two years

The annual profit of the Investment Corporation of Bangladesh (ICB) – a state-owned investment bank – has surpassed the Tk100 crore mark after two years, riding on capital gains from the stock market.

Also, a decrease in interest payment against deposits and borrowings helped the ICB get a good pace in profit in the last fiscal year, says the company in a disclosure on stock exchanges on Thursday.

In fiscal 2017-18, its net profit was Tk416.32 crore but the company suffered a drastic fall in profit in the following year. 

As the stock market was slow-moving during the 2018-19 and 2019-20 fiscal years, the investment bank's net profit dropped below Tk100 crore.

The company said it had suffered a decline in profit as it kept buying securities for maintaining the sustainability of the market.

As the stock market gained momentum in fiscal 2020-21, the ICB profit almost doubled as its income from major sectors has increased significantly.

Despite huge jumps in profit, its share price fell 5.04% on Thursday to Tk120.30 each, from Tk126.70 in the previous trading session. 

ICB's main activities are investing in the share market, providing loans and advances, acting as manager, trustee, custodian of mutual funds.

Its majority income comes from capital gains and dividend income from the stock market.

According to its financials, its consolidated net profit rose to Tk115.33 crore and the earnings per share (EPS) stood at Tk1.43 till June 2021.

A year ago, in fiscal 2019-20, its consolidated net profit was Tk56.68 crore and EPS Tk0.70.

In the last fiscal year, the company recommended an 11% cash dividend for its shareholders, up from a 5% cash and 5% stock dividend in the previous year.

The ICB will hold its annual general meeting on 28 December through the digital platform.

To identify its shareholders, it has fixed 1 December as the record date.

According to its financials, in the first nine months of fiscal 2020-2021, the company's total operating income was Tk406.37 crore, which is 186% higher than the same time a year ago.

In this period, its dividend income rose 2.67%, capital gain 45%, fees, commission, and service charges 19% compared to the same period of the previous year.

In the nine months to March this year, its net profit stood at Tk100.51 crore. At the same time in the previous year, it incurred a loss of Tk47.80 crore.

The ICB got listed on the stock market in 1977.

Till September 2021, sponsors and directors held 69.81%, government 27%, institutional investors 1.94% and general public 1.25% shares in the company.