LankaBangla Finance declares 12pc cash dividend
Its EPS surges by 93pc in 2020 despite pandemic
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The board of directors of LankaBangla Finance has recommended 12 per cent cash dividend for the year ended on December 31, 2020.
The annual general meeting (AGM) will be held on April 29 at 11:00 am using the digital platform.
The record date is April 05, the company said in a filing with the Dhaka Stock Exchange on Thursday.
The company’s consolidated earnings per share (EPS) soared by nearly 93 per cent to Tk 1.81 for the year ended on December 31, 2020, as against Tk 0.94 for the same period a year earlier.
The company has also reported consolidated NAV per share of Tk 18.73 and consolidated NOCFPS of Tk. 15.79 for the year ended on December 31, 2020, as against Tk. 17.60 (restated) and negative Tk. 2.53 (restated) respectively for the same period of the previous year.
The company has also informed that due to the deferral of classification status as per the central bank circulars from the dates of 01 January 2020, 24 March 2020, 26 August 2020 and 01 November 2020 by Bangladesh Bank provision charge for loan and advance of LankaBangla Finance and the group was reduced by Tk 465,438,252 in 2020.
Alongside, the capital market gained its pace during the last couple of months of 2020. Utilising that positive growth, the group has reduced its provision charge for diminution in value of investments by Tk 322,592,835 in 2020 when group income from brokerage commission increased by Tk 43,380,753.
The LankaBangla Group responded to the economic crisis raised from the Covid-19 pandemic prudently to optimise its operating capacity in 2020.
In consequence operating expenses of the Group in 2020 decreased by Tk 484,423,328 compared to 2019.
Besides, there was a decrease in income tax charge by Tk 16,765,110 during 2020 compared to 2019 as gross received reduced in 2020.
In sum, consolidated profit after tax increased by 93 per cent in 2020 that contributed to increased EPS.
The NAV increased by 6.0 per cent to reach Tk 18.73 at the end of 2020 compared to 2019 with the contribution of current year profit.
Though cash generated from operations decreased, net cash collection from operating assets and liabilities increased.
Because of limited disbursement during the pandemic period in 2020 and increased deposits from customers, overall, these contribute to increasing of net cash flows from operating activities in the year 2020 compared to the year 2019.
Each share of the company, which was listed on the Dhaka Stock Exchange in 2006, closed at Tk 36.10 on Wednesday.
In 2019, the company disbursed 7.0 per cent cash and 5.0 per cent stock dividend.