City Bank to invest Tk 1.30b in City Brokerage as share capital

FE Online Report | Published: September 06, 2018 14:41:27 | Updated: September 13, 2018 12:01:45

The board of directors of City Bank has decided to invest Tk 1.30 billion as share capital in City Brokerage, a subsidiary of the private bank.

The bank will invest the money in acquiring 130 million of its subsidiary's shares at a cost of Tk 10 each, said an official disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.

However, the investment issue is subject to obtaining approval from regulatory bodies—Bangladesh Bank, Bangladesh Securities & Exchange Commission (BSEC) — and to complying with the rules and regulations.

The City Bank was listed on the Dhaka bourse in 1986. Each share of the bank closed at Tk 33.30 on Tuesday at DSE.

In the last one year, the bank’s share price traded between Tk 28.30 and Tk 57.30.

The bank’s consolidated earnings per share (EPS) was Tk 1.11 for April-June 2018 as against Tk 1.51 for April-June 2017.

In January-June of 2018, the consolidated EPS was Tk 1.51 as against Tk 2.18 in January-June 2017.

The consolidated net operating cash flow per share (NOCFPS) was Tk 12.92 in January-June 2018 as against negative Tk 10.43 in January-June 2017.

The consolidated net asset value (NAV) per share was Tk 27.76 as on June 30, 2018 and Tk 28.40 as on December 31, 2017.

The bank disbursed 19 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2017. In 2016, it paid 24 per cent cash dividend.

Its paid-up capital is Tk 9.67 billion and authorised capital is Tk 15 billion, while the total number of securities is 967.98 million.

The sponsor-directors own 30.23 per cent stake in the bank while institutional investors own 23.12 per cent, foreign investors 11.92 per cent and the general public 34.73 per cent as on July 31, 2018, the DSE data shows.

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