The Financial Express

Mercantile Bank declares 10pc cash, 5.0pc stock dividend

| Updated: March 15, 2021 18:22:46

Mercantile Bank declares 10pc cash, 5.0pc stock dividend

The board of directors of Mercantile Bank Ltd has recommended 10 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2020.

The final approval of the dividend will come during the 22nd annual general meeting (AGM) scheduled for April 28 at 11:00 am by using the hybrid system - a combination of physical presence and using the digital platform, the bank said in a disclosure.

The record date is April 05.

The bank has also reported consolidated earnings per share (EPS) of Tk 2.26, consolidated net asset value (NAV) per share of Tk 22.61 and consolidated net operating cash flow per share (NOCFPS) of Tk 4.16 for the year ended on December 31, 2020, as against Tk 2.26 (restated), Tk 22.34 and Tk 2.22 respectively for the same period of the previous year.

The bank has also informed that stock dividend has been declared to strengthen Tier-1 capital base as per Basel-III compliant for the coming year.

The bonus shares were declared out of accumulated profit and not declared from the capital reserve or revaluation reserve or any unrealised gain or out of profit earned prior to incorporation of the bank or through reducing paid-up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance, said the bank.

Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 2004, closed at Tk 12.80 on Thursday. Its shares traded between Tk 10 and Tk 14.20 in the last one year.

In 2019, the bank disbursed 11 per cent cash and 5.0 per cent stock dividend.

The bank's paid-up capital is Tk 9.84 billion and authorised capital is Tk 10 billion while the total number of securities is 984.01 million.

The sponsor-directors own 37.71 per cent stake in the bank, while the institutional investors own 22.89 per cent, foreign investors 4.08 per cent and the general public 35.32 per cent as of February 28, 2021, the DSE data show.

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