Eastern Bank Ltd has recommended a 25% dividend – a 12.50% cash and 12.50% stock – for its shareholders for 2021, which is lower than the previous year.
In a stock exchange filing on Sunday, the private sector lender said stock dividend has been recommended to strengthen its capital base to support projected business growth and also to improve certain regulatory ratios.
The bank has also decided to increase its authorised capital from Tk1,200 crore to Tk2,500 crore.
Earlier in 2020, it had paid a 35% dividend – 17.5% cash and 17.5% stock.
To increase authorised capital, the bank will amend the related clauses of the memorandum of association and article of association in compliance with the rules and regulations subject to the approval of the regulatory authorities and the shareholders in the annual general meeting (AGM).
EPS jumps 15%
According to the disclosure, the earnings per share (EPS) of the bank increased by 15% in 2021 compared to the previous year.
The consolidated EPS rose to Tk5.03, a 14.84% increase from Tk4.38 in 2020.
The bank said the AGM will be held on 19 May through the digital platform, and the record date has been fixed on 25 May to identify shareholders.
The consolidated net asset value (NAV) per share rose to Tk33.17, which was Tk30.87 in 2020.