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Eastern Bank reported a record profit of Tk 6.6 billion in 2024, driven by higher net interest income following the introduction of market-based interest rate and higher investment income.
The private commercial bank posted a 7.76 percent growth in consolidated profit year on year to Tk 6.6 billion in 2024.
As a result, the consolidated earnings per share (EPS) rose to Tk 4.86 in 2024 from Tk 4.51 the year before, according to a Dhaka Stock Exchange (DSE) filing on Tuesday.
The net interest income, the core source of income for the bank, supported the lender's impressive earnings growth in an adverse business climate engendered by inflationary pressure. Investment income also got a boost year-on-year.
The bank is yet to make public its detailed financial statement for 2024. So, annual interest income, net interest income and investment income could not be known.
However, EBL's interest income in the first nine months through September last year jumped more than 46 per cent year on year to Tk 28.5 billion.
Its nine-month net interest income also soared 36 per cent year-on-year to Tk 7.9 billion while investment income grew more than 30.7 per cent year-on-year to Tk 7.89 billion in January-September.
The bank's board of directors recommended a 35 per cent dividend (17.5 per cent cash and 17.5 per cent stock) for 2024 at a board meeting held on Tuesday. This is the highest dividend after 2020.
According to the company, the stock dividend has been recommended to strengthen the capital base of the bank (EBL).
Bonus shares will be given out of accumulated profits, not from capital reserve or revaluation reserve or any unrealized gains.
The annual general meeting (AGM) is scheduled for May 21, when shareholders are expected to approve the recommended dividends and the annual financial report. The record date for investors to be eligible for the dividend is April 23.
The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, rose to Tk 17.74 in 2024 from a mere Tk 6.95 in the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 31.63 per share in 2024 from Tk 28.16 a year ago.
The stock of Eastern Bank closed at Tk 26.50 per share on the Dhaka Stock Exchange on Tuesday, rising 1.92 per cent over the previous day.
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