Mercantile Bank’s profit drops 12pc in 2023

Mercantile Bank’s net profit dropped 12 per cent year-on-year to Tk 2.05 billion in 2023, as the bank’s operating profit fell amid rising costs of funds.

Mercantile Bank’s consolidated operating profit fell more than 35 per cent year-on-year to Tk 5.45 billion in 2023 compared with the previous year’s operating profit of Tk 8.45 billion.

Accordingly, the bank board recommended a 10 per cent dividend for the year ended on December 31, 2023, down from 10 per cent cash and 2 per cent stock dividend in the year before.

The final approval of the dividend will come during the annual general meeting (AGM) scheduled for May 30.

The record date is set for May 8.

The bank has also reported consolidated earnings per share (EPS) of Tk 1.86, down from Tk 2.12.

The consolidated net asset value (NAV) per share of Tk 23.30 and consolidated net operating cash flow per share (NOCFPS) of Tk 4.80 for the year ended on December 31, 2023, as against Tk 23.71 and Tk 4.73 respectively in the previous year.

Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 2004, closed at Tk 12.10 on Tuesday, losing 1.63 per cent over the previous day.

The bank’s paid-up capital is Tk 11.06 billion and authorised capital is Tk 12 billion while total number of securities is over 1.10 billion.

The sponsor-directors own 34.31 per cent stake in the bank, while the institutional investors own 26.34 per cent, foreign investors 0.85 per cent and the general public 38.50 per cent as on March 2024, the DSE data show.

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