Prime Bank profits soar 78% in 2021

Prime Bank Limited – a second-generation commercial bank – has reported a 78% year-on-year growth in profit for 2021.

Buoyed by the high net profit, the private sector lender has recommended a 17.50% cash dividend for its shareholders, a 2.5% increase from the previous year.

The company officials were not available to make comments on its "outstanding" profit growth, but industry insiders said amid the Covid-19 pandemic, banks' profits soared on non-funded income, and stock market investment returns.

But the funded income of the lenders declined significantly compared to the normal time, they added. 

According to a stock exchange filing on Monday, Prime Bank's consolidated net profit increased to Tk325 crore, and the earnings per share (EPS) to Tk2.87 for 2021.

One year ago, its consolidated net profit was Tk183 crore, and EPS Tk1.61.

On a solo basis, the lender's net profit soared by 73% to Tk311 crore from Tk180 crore in 2020.

Its consolidated statements include the financial statements of the bank and its wholly-owned five subsidiaries.

The subsidiaries are Prime Exchange Co Pte Singapore, PBL Exchange (UK), PBL Finance (Hong Kong), Prime Bank Investment, and Prime Bank Securities.

In a disclosure, the bank said the annual general meeting (AGM) will take place on 12 May on a digital platform. 

To identify shareholders of the bank, the record date has been fixed for 19 April.

Prime Bank, which got listed on the capital market in 2000, is now placed in the "A" category.

As of February, sponsor-directors held 39.03%, institutional investors 36.93%, foreigners 0.53% and the general public 23.51% shares in the lender.

In the previous year, the bank had disbursed a 15% cash dividend to its shareholders.