Premier Bank Limited – a third-generation private sector lender – has reported a 38% year-on-year decline in its consolidated earnings per share (EPS).
Despite the drop in profit, the financial institution has recommended a 12.5% cash and a 7.5% stock dividend for the shareholders.
In the previous year, it had paid a 5% cash and a 5% stock dividend.
As the bank declared more dividends, its share price rose by 9.52% on Monday. The share price reached Tk13.80 each from Tk12.60.
In 2020, Premier Bank's consolidated EPS stood at Tk2.13, which was Tk3.44 in the previous year. In 2019, the bank posted a profit of Tk333.81 crore.
The financial institution said the stock dividend is declared out of accumulated profit, which strengthens the capital base of the company to support the business growth.
Stock dividends are not declared from 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 annual general meeting (AGM) will be held on 5 May where shareholders will be able to attend in person at Iqbal Centre in Banani and also join using a digital platform. The authorities have 12 April as the record date.
The Premier Bank commenced its operations on 26 October 1999 with the prime motto of "Service First" and got listed on the stock exchanges in 2007.
The bank offers a wide range of depository products, loans and advances, card products and a variety of services to cater virtually for every customer segment.
The product basket is rich in content featuring different types of savings and current accounts, term and continuous loans, personal loans, debit/credit cards, internet banking, treasury and syndication services, etc.
The bank increases authorised capital
The Premier Bank board has decided to increase the authorised capital and amend in the memorandum and article of association.
The financial institution wants to increase its capital from the existing Tk1,000 crore to Tk1,500 crore.
The company said it will amend the 112 articles of the article of association, setting the quorum for meetings of the board of directors at five instead of seven at present.
To get approval from the regulatory authorities and the shareholders, the company will arrange an extraordinary general meeting on 5 May.