The Financial Express

Islami Bank declares 10pc cash dividend for 2020

The bank to issue Tk 8.0b IBBL 2nd perpetual bond

| Updated: May 01, 2021 10:48:26

Islami Bank declares 10pc cash dividend for 2020

The board of directors of Islami Bank Bangladesh has recommended a 10 per cent cash dividend for the year ended on December 31, 2020.

The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on June 27 at 11:30 am using the digital platform.

The record date is set for May 20, the bank said in a filing with the Dhaka Stock Exchange (DSE) on Wednesday.

The bank has also reported consolidated EPS of Tk 2.98, consolidated NAV per share of Tk 38.89 and consolidated NOCFPS of Tk 82.44 for the year ended on December 31, 2020, as against Tk 3.40, Tk 36.88 and Tk 29.06 respectively for the same period of the previous year.

The board of directors of the bank has also decided to issue floating-rate unsecured, contingent convertible on pre-specified trigger point, coupon/profit discretion, subordinated, non-cumulative, IBBL 2nd Perpetual Mudaraba Bond of Tk 8.0 billion.

The bank will issue the bond for inclusion in Tier 1 capital as regulatory additional Tier 1 (AT1) Capital under Basel-III norms compliance in line with Bangladesh Bank guidelines on risk-based capital adequacy.

The bond issue is subject to approval from concerned regulatory authorities – Bangladesh Bank and Bangladesh Securities and Exchange Commission as well as the approval of the shareholders of the bank.

The bank also disclosed the first quarter (Q1) un-audited financial statements on Wednesday. As the Q1 reports, consolidated EPS was Tk 0.45 for January-March 2021 as against Tk 0.43 for January-March 2020.

In 2019, the bank also disbursed 10 per cent cash dividend.

Each share of the bank, which was listed on the DSE in 1985, closed at Tk 28.30 on Tuesday. Its shares traded between Tk 16.70 and Tk 32 in the last year.

Its paid-up capital is Tk 16.10 billion and authorised capital is Tk 20 billion, while the total number of securities is 1.60 billion.

The sponsor-directors own 51.32 per cent stake in the bank while the institutional investors own 14.07 per cent, foreign investors 20.50 per cent and the general public 14.11 per cent as on March 31, 2021, the DSE data show.

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