Islami Bank declares 10% cash dividend

Islami Bank Bangladesh Ltd will pay 10 percent cash dividends to its shareholders for the 2019-20 financial year.

The bank made the decision at a meeting on Saturday evening.

However, the final approval of the dividends will come during an annual general meeting on August 20. The record date is July 21, 2020.

According to the information of Dhaka Stock Exchange (DSE), the bank reported a consolidated net profit of Tk548.06 crore in the 2019-20 financial year. In this time, the bank also reported earnings per share (EPS) of Tk3.40, which was 13 percent lower than that in the previous year.

The consolidated net asset value (NAV) per share amounted to Tk36.88 for the year that ended on December 31, 2019. In that year, the net operating cash flow per share (NOCFPS) was Tk29.06, which was Tk2.95 negative in the previous year.

The bank reported that the positive net cash inflows were from Tk5,565.20 crore client deposits and other assets and liabilities of Tk1,362.20 crore, whereas the cash outflow was Tk1,755 crore from the bank during the year.

Islami Bank paid 10 percent cash dividends to its shareholders in the last three financial years as well.

Meanwhile, the bank has recommended an annual profit rate of 9.38 percent for IBBL Mudaraba Perpetual Bond for the year that ended on December 31, 2019. The record date for entitlement of profit of the bond is July 21. Profit will be distributed within 30 days after the annual general meeting of the bank.

The bank's paid-up capital is currently Tk1,610 crore.

As of February this year, sponsors and directors jointly owned 48.93 percent shares, institutional investors 12.19 percent, foreign investors 23.54 percent and general investors 15.34 percent shares of the bank.

The closing price of each share of the bank was Tk16.70 on Sunday at the Dhaka Stock Exchange, while its shares hit their highest price of Tk24.90 per share within one year.