ICB slips back into the red

State-run Investment Corporation of Bangladesh (ICB) reported a loss of Tk 0.75 billion for the first quarter through September of FY25 after a remarkable recovery in the final quarter of the previous fiscal year.

It recovered from a loss of Tk 2.67 billion in the first nine months through March of FY24 to gain an annual income of Tk 0.33 billion by the end of the fourth quarter to June of FY24.

The ICB went back into the red as it entered FY25.

However, it reduced losses in Q1 of FY25, compared to the first quarter of FY24.

The company said an increase in capital gains from the sale of securities and a higher dividend income cut losses.

After the earnings disclosure, the stock of ICB moved up 2.63 per cent to Tk 70.20 per share on the Dhaka Stock Exchange (DSE) on Monday.

The net operating cash flow per share, which indicates a company's ability to generate cash from its operations, is reported to have deteriorated to 1.80 in the negative in FY24 from Tk 0.72 in the negative the year before.

The recovery the ICB made in FY24 was unexpected because the investment bank had a negative net interest income (interest income-interest expenses) of Tk 5.39 billion in the first three quarters to March.

The gap was supposed to widen in the fourth quarter because of the rising interest rates. The ICB has a huge amount of debts in its balance sheet.

ICB made the recovery in the last quarter of FY24 relying on dividends, capital gains, and commission income, said Managing Director Md Abul Hossain earlier.

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