The Financial Express

Premier Bank declares 20pc dividend

| Updated: March 23, 2021 10:20:46

Premier Bank declares 20pc dividend

The board of directors of Premier Bank has recommended 12.50 per cent cash and 7.50 per cent stock dividends for the year ended on December 31, 2020.

The board has also decided to increase authorised capital of the bank to Tk 15 billion, from the existing Tk 10 billion, the bank said in a filing with the Dhaka Stock Exchange (DSE) on Monday.

Accordingly, amend in the memorandum and article of association of the bank and amend the 112 article of article of association of the company regarding the quorum for the meeting of the board of directors shall be 5 instead of 7, otherwise decided by the board of directors subject to approval from the regulatory authorities and the shareholders in the extraordinary general meeting.

The EGM and annual general meeting will be held on May 5 at 11:00 am and 11:30 am respectively through a hybrid system: Physical presence and digital platform.

The record date for EGM & AGM is April 12.

The bank has also reported consolidated EPS of Tk. 2.13, consolidated NAV per share of Tk. 21.02 and consolidated NOCFPS of Tk. 21.48 for the year ended on December 31, 2020, as against Tk. 3.44 (restated), Tk. 19.33 (restated) and Tk. 9.36 (restated) respectively for the same period of the previous year.

The bank has also informed that stock dividend has been recommended to strengthen the capital base of the bank to support business growth.

Stock dividends are declared out of accumulated profit and not declared from the capital reserve or revaluation reserve or any unrealized gain or out of profit earned prior to incorporation of the company or through reducing paid-up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance.

There will be no price limit on the trading of the shares of the bank today following its corporate declaration; however, as per the BSEC order dated March 19, 2020, the floor price shall be applicable accordingly.

Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 2007, closed at Tk 12.60 on Sunday. Its shares traded between Tk 9.90 and Tk 13.40 in the last one year.

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

The bank’s paid-up capital is Tk 9.70 billion and authorised capital is Tk 10 billion while total number of securities is 970.29 million.

The sponsor-directors own 35.33 per cent stake in the bank, while the institutional investors own 16.50 per cent, foreign investors 1.72 per cent, and the general public 46.45 per cent as of February 28, 2021, the DSE data shows.

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