Islamic Finance declares higher dividend despite a profit decline
Share price rose 3.96% to Tk23.6 per share on Monday
Islamic Finance and Investment Limited – a publicly listed non-bank financial institution (NBFI) – has recommended a 10.5% cash dividend despite a 14% decline in its profit for 2021 compared to the previous year.
The NBFI had paid a 10% cash dividend to the shareholders in 2020.
After disclosing the price-sensitive information on the Dhaka Stock Exchange (DSE) website, the company's share price increased 3.96% to Tk23.6 per share on Monday from Tk22.7 in the previous session.
The earnings per share (EPS) of the company stood at Tk1.32 in 2021, which was Tk1.54 in 2020.
According to the company's DSE disclosure, the main reasons behind the profit decline are the increase in provision for loans, advances and investments, and decrease in income from general investment in compliance with the Bangladesh Bank circular following Covid-19.
The annual general meeting for finalising the dividend will be held on 29 June through a digital platform. The record date has been fixed on 31 May.
The company also posted a decline in its profit for the first quarter of this year.
In the January-March quarter of 2022, its EPS declined 27% to Tk0.3 from Tk0.41 in the same quarter of 2021.
The company said the EPS decreased mainly because of an increase in profit suspense and maintaining provision against general investment for irregular repayments by investment clients.
