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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Eight banks declare total Tk 9.11b cash dividends

'It'll ease liquidity crunch in capital market'


| Updated: May 12, 2020 09:45:04


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Eight listed banks declared aggregate cash dividends amounting to Tk 9.11 billion for the year ending on December 31, 2019 amid the ongoing Covid-19 pandemic.

Of the 30 banks, listed on the Dhaka Stock Exchange, eight banks declared dividends so far as of Thursday (May 7), according to statistics available with the DSE and the companies' disclosures.

The rest of the banks are waiting to recommend dividends for the year under review.

Stockbrokers said it is a good sign that the listed banks are declaring cash dividends despite the Covid-19 pandemic, which will ease liquidity crunch in the capital market to some extent.

Experts, however, said directors of the banks, who will be benefited most by the dividend payment, should refrain from taking dividends, and prioritise strengthening their respective banks' reserve.

Meanwhile, the European Central Bank (ECB) has asked the Eurozone banks not to pay any dividend in order to boost their capacity to absorb loss due to the Covid-19 pandemic.

The Bank of England (BoE) also ordered lenders to cancel plans to offer dividends for shareholders, and asked to boost their strength ahead of a probable recession.

The Reserve Bank of India recently barred banks from paying dividends for the fiscal year ending in March 2020, so that they conserve capital following the economic shock caused by the Covid-19 pandemic.

But, the Bangladesh Bank has left the issue to the banks concerned.

Eastern Bank: The board of directors of Eastern Bank has recommended 25 per cent cash dividend for the year ending on December 31, 2019. The bank declared 25 per cent cash dividend, which is worth Tk 2.03 billion.

Brac Bank: The board of directors of Brac Bank has recommended 7.50 per cent cash and 7.50 per cent stock dividends for the year 2019. The bank declared 7.50 per cent cash dividend, which is worth Tk 925 million.

The bank has also reported consolidated earnings per share (EPS) of Tk 4.01 for 2019 as against Tk 4.50 in the previous year.

Dutch-Bangla Bank: The board of directors of Dutch-Bangla Bank has recommended 30 per cent cash dividend for the year ending on December 31, 2019. The bank declared 30 per cent cash dividend, which is worth Tk 1.50 billion.

It has also reported consolidated EPS of Tk 8.68 for 2019 as against Tk 8.40 (restated) for the previous year, according to disclosure.

Bank Asia: The board of directors of Bank Asia has recommended 10 per cent cash for the year ending on December 31, 2019. The bank declared 10 per cent cash dividend, worth Tk 1.17 billion.

It has also reported consolidated EPS of Tk 1.68 for 2019 as against Tk 1.92 (restated) for the previous year.

Mercantile Bank: The board of directors of Mercantile Bank has recommended 11 per cent cash and 5.0 per cent stock dividends for the year ending on December 31, 2019. The bank declared 11 per cent cash dividend, which is worth Tk 1.03 billion.

The bank has also reported consolidated EPS of Tk 3.01 for 2019 as against Tk 3.12 (restated) for the previous year.

Standard Bank: The board of Standard Bank has recommended 5.0 per cent cash and 5.0 per cent stock dividends for the year ending on December 31, 2019. The bank declared 5.0 per cent cash dividend, which is worth Tk 479 million.

It has also reported consolidated EPS of Tk 1.57 for the year ending on December 31, 2019 as against Tk 1.31 for the previous year.

Uttara Bank: The board of Uttara Bank has recommended 10 per cent cash and 25 per cent stock dividends for the year ending on December 31, 2019. The bank declared 10 per cent cash dividend, which is worth Tk 408 million.

NCC Bank: The board of NCC Bank has recommended 17 per cent cash dividend for the year 2019, worth Tk 1.58 billion.

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