LankaBangla Finance Ltd posted a 31% growth in its consolidated annual profits for 2021, thanks to its return on capital market investments.
The consolidated net profit after taxes of the non-bank financial institution (NBFI) soared to Tk130 crore in 2021, which was Tk97 crore in the previous year. Its consolidated earnings per share (EPS) stood at Tk2.38.
According to the company's financial statements, the profit surged mainly because its net investment income from the stock market, and brokerage and underwriting commission increased to Tk79.89 crore and Tk78.83 crore respectively.
However, the NBFI's solo profit fell 26% year-on-year in 2021. Its solo EPS stood at Tk1.13 in 2021, which was Tk1.53 in the previous year.
LankaBangla Finance is operating with the second largest balance sheet in its sector with a significant customer base in retail, SME, and corporate lending arenas.
It is also the third lender to offer credit cards in Bangladesh and still the lone NBFI in the plastic money business.
It posted a negative consolidated net operating cash flow per share of Tk0.88 for 2021. The company explained about the negative cash flow to the stock exchange that cash outflow for loan disbursement and settlement was higher than the cash inflow from deposit growth.
Meanwhile, LankaBangla Finance's board has recommended a 10% cash dividend to its shareholders for 2021.
To approve the dividend and audited report of 2021, it set the annual general meeting on 31 May 2022 and the record date will be 9 May.
On Tuesday, its share price fell by 4% to close at Tk30.2 each at the Dhaka Stock Exchange (DSE). The stock's downfall brought the company to the top position on the loser list at the DSE.
The company has three subsidiaries named – LankaBangla Securities, LankaBangla Investment, and LankaBangla Asset Management Company Limited.
LankaBangla is a major name in each of the intermediary industries as its brokerage arm is the top firm in terms of trade execution, while the merchant bank is also a leading name in investment banking, issue management, corporate advisory, and portfolio management.