ICB’s quarterly profit grows 87% on capital gain

The Investment Corporation of Bangladesh (ICB) witnessed an 87% increase in profit in the first quarter of the current fiscal year riding on the back of capital gain – a major income segment for the state-owned investment bank.

According to its financials, ICB's consolidated profit rose to Tk56.79 crore, and earnings per share (EPS) stood at Tk0.70 in the July- September period.

At the same time a year ago, the profit was Tk30.39 crore and EPS Tk0.38.

A decrease in interest payment against deposits and borrowing also helped ICB make a good profit, the company said in a disclosure on its website.

In the 2020-21 fiscal year, the profit of the corporation rose by 103% to Tk115.33 crore, from Tk56.68 crore in the previous fiscal year, on capital gain from the stock market and a decrease in interest payment against deposits and borrowing.

As a result, the ICB had returned to over Tk100 crore profit after two years.

As the stock market was slow-moving during the 2018-19 and 2019-20 fiscal years, its net profit declined to below Tk100 crore.

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

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

As per financials, net operating cash flow per share of the company stood negative at Tk8.87 due to an increase in repayment of term deposit receipt (TDR).

At the same period of the previous fiscal year, net operating cash flow was negative at Tk4.60.

ICB got listed on the stock market in 1977.

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