DBH Finance declares 15pc cash dividend despite lower earnings

DBH Finance PLC has recommended a 15 per cent cash dividend for the year ended December 31, 2025, maintaining a steady payout despite a slight decline in annual earnings.

According to the company’s disclosed financial statements, earnings per share (EPS) declined to Tk 4.69 in 2025 from Tk 4.97 (restated) in the previous year, marking nearly 5.6 per cent year-on-year fall in profit.

Despite lower earnings, the non-bank financial institution strengthened its balance sheet position during the year. Net asset value (NAV) per share increased to Tk 49.55 from Tk 46.33 a year earlier, reflecting higher retained earnings and stronger equity backing.

The company also reported a significant improvement in cash generation from core operations. Net operating cash flow per share (NOCFPS) rose sharply to Tk 7.46 in 2025 from negative Tk 0.37 in the previous year.

Market analysts said the sharp recovery in operating cash flow is particularly significant for a lending institution as it indicates improved loan recovery, stronger interest collection and healthier liquidity management.

Based on the reported EPS of Tk 4.69, the recommended cash dividend of Tk 1.50 per share represents a payout ratio of around 32 per cent, which analysts consider sustainable under the current earnings structure.

Investors may respond positively to the declaration as the company maintained a solid cash dividend despite softer profitability amid the challenging financial sector environment.

The record date for entitlement of the dividend has been fixed for June 4, 2026.

The annual general meeting (AGM) will be held virtually on June 29 at 11:30am through an online digital platform.

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