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The Financial Express

Most listed banks offer higher dividends for 2020

Relaxed provisioning one of the reasons


| Updated: May 12, 2021 11:01:20


Most listed banks offer higher dividends for 2020

Most of the listed banks have declared higher dividends for the year ended on December 31, 2020 than that of the previous year as the profit margins rose due to relaxed provisioning amid ongoing pandemic.

Of the 31 banks listed with the Dhaka Stock Exchange (DSE), 26 have declared dividend for 2020 as of Monday.

Twelve banks declared higher dividends than that of the previous year, five recommended lower, eight declared similar to previous year while one declared 'no' dividend, according to statistics available with the DSE.

Market operators said most of the banks declared higher dividend largely because of the central bank that gave opportunities to the banks in the form of relaxed provisioning, deferred recognition of nonperforming loans and the year-end loan rescheduling facilities approved for large borrowers.

Eastern Bank, Dutch-Bangla Bank, Premier Bank, City Bank, Al-ArafahIslami Bank, Prime Bank, Pubali Bank, ShahjalalIslami Bank, Jamuna Bank, ONE Bank, Dhaka Bank and newly listed NRB Commercial Bank have declared higher dividends in 2020, compared to the previous year.

The ICB Islamic Bank declared 'no' dividend for 2020 as in the previous years while IFIC Bank, NCC Bank, Mercantile Bank, Standard Bank and Uttara Bank declared lower dividends than previous year.

The Eastern Bank came up with the highest dividend -- 35 per cent (17.50 per cent cash and 17.50 per cent stock) for 2020, also the highest allowable limit. The bank had disbursed 15 per cent cash in 2019.

The Dutch-Bangla Bank is the second highest in terms of dividend amount, as it declared 30 per cent (15 per cent cash and 15 per cent stock) for 2020. In 2019, the bank paid 25 per cent dividend (15 per cent cash and 10 per cent stock).

The Uttara Bank declared 25 per cent dividend (12.50 per cent cash and 12.50 per cent stock) for the year 2020, the third highest. However, the bank disbursed 30 per cent dividend in 2019 (7.0 per cent cash and 23 per cent stock).

The City Bank declared 22.50 per cent dividend (17.50 per cent cash and 5.0 per cent stock) for the year 2020. In 2019, the bank disbursed 15 per cent cash dividend.

The Premier Bank declared 20 per cent dividend (12.50 per cent cash and 7.50 per cent stock) for the year 2020. The bank paid 10 per cent dividend (5.0 per cent cash and 5.0 per cent stock) in 2019.

The Jamuna Bank declared 17.50 per cent cash dividend for the year 2020. In 2019, the bank disbursed 15 per cent cash.

Al-ArafahIslami Bank recommended 15 per cent cash dividend for 2020. In 2019 the bank paid 13 per cent cash.

The Prime Bank also declared 15 per cent cash dividend for 2020. The bank disbursed 13.50 per cent cash in 2019.

The Brac Bank declared 15 per cent dividend (10 per cent cash and 5.0 per cent stock) for 2020. In 2019, the bank gave 7.50 per cent cash and 7.50 per cent stock.

NCC Bank recommended 7.50 per cent cash and 7.50 per cent stock dividend for 2020. In 2019, the bank disbursed 15 per cent cash and 2.0 per cent stock.

Mercantile Bank declared 10 per cent cash and 5.0 per cent stock for 2020. The bank gave 11 per cent cash and 5.0 per cent stock dividend in 2019.

ShahjalalIslami Bank declared 7.0 per cent cash and 5.0 per cent stock dividend for 2020. In 2019, the bank disbursed 5.0 per cent cash and 5.0 per cent stock dividend.

ONE Bank declared 6.0 per cent cash and 5.50 per cent stock dividend for 2020. In 2019, the bank disbursed 5.0 per cent cash and 5.0 per cent stock.

Pubali Bank declared 12.50 per cent cash dividend for 2020. The bank gave 10 per cent cash dividend in 2019.

Dhaka Bank recommended 6.0 per cent cash and 6.0 per cent stock dividend for 2020. In 2019, the bank paid 5.0 per cent cash and 5.0 per cent stock.

Bank Asia declared 10 per cent cash dividend for 2020. The bank also gave 10 per cent cash in 2019.

Exim Bank recommended 7.50 per cent cash and 2.50 per cent stock dividend for 2020. In 2019, the bank paid 10 per cent cash.

Islami Bank declared 10 per cent cash dividend for 2020. The bank also disbursed 10 per cent cash in 2019.

Mutual Trust Bank recommended 10 per cent stock dividend for 2020. In 2019, the bank paid 5.0 per cent cash and 5.0 per cent stock.

Social Islami Bank recommended 5.0 per cent cash and 5.0 per cent stock dividend for 2020. In 2019, the bank also gave 5.0 per cent cash and 5.0 per cent stock.

Southeast Bank recommended 10 per cent cash dividend for 2020. In 2019, the bank paid 7.50 per cent cash and 2.50 per cent stock dividend.

AB Bank and IFIC Bank have declared 5.0 per cent stock dividend each for 2020 against 5.0 per cent stock and 10 per cent stock respectively in 2019.

Standard Bank declared 2.50 per cent cash and 2.50 per cent stock dividend for 2020. In 2019, the bank paid 5.0 per cent cash and 5.0 per cent stock dividend.

The newly-listed NRB Commercial Bank declared 7.50 per cent cash and 5.0 per cent stock dividend for 2020.

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