Shares prices of Premier Bank jumped 9.52 per cent to close at Tk 13.80 on Monday following its 'hefty' dividend declaration for the year ended on December 31, 2020.
The private commercial bank has declared a 20 per cent dividend (12.50 per cent cash and 7.50 per cent stock) for the year ended on December 31, 2020, the bank said in a filing with the Dhaka Stock Exchange (DSE) on Monday.
It was the highest dividend declaration by the Premier Bank in nine years since 2011 when it disbursed 22 per cent stock dividend, the DSE data showed.
In 2019, the bank disbursed 5.0 per cent cash and 5.0 per cent stock dividend.
The Premier Bank was the day's top gainer. It was also the day's second most traded stocks with 34.88 million shares worth about Tk 467 million changing hands on Monday at DSE.
The board of directors has also decided to increase authorised capital of the bank to Tk 15 billion, from existing Tk 10 billion, by amending relevant memorandum and article of association of the bank subject to approval from the regulatory authorities and the shareholders in the extraordinary general meeting.
The EGM and annual general meeting (AGM) will be held on May 5 at 11:00am and 11:30am respectively through hybrid system: Physical presence and digital platform.
The record date for EGM & AGM is on April 12.
The bank has also reported consolidated earnings per share (EPS) of Tk 2.13, consolidated net asset value (NAV) per share of Tk 21.02 and consolidated net operating cash flow per share (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.
The bank has also said stock dividend is declared out of accumulated profit and not declared from capital reserve or revaluation reserve or any unrealised 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.
Each share of the bank, which was listed on the DSE in 2007, traded between Tk 9.90 and Tk 13.40 in the last one year.
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 on February 28, 2021, the DSE data showed.