Jamuna Bank posts Tk280 crore profit, plans to issue Tk1,000 crore bond

Jamuna Bank reported a profit of Tk280 crore for the year ending December 2024, marking an 18% year-on-year growth, mainly driven by higher interest income.

The private-sector lender also declared a 24% dividend for its shareholders for the year, comprising 17.50% in cash and 6.50% in stock.

The decision was made at a meeting of the bank's Board of Directors held on Sunday, where the audited financial statements for 2024 were reviewed and approved. The announcement was published on the Dhaka Stock Exchange (DSE) website.

According to the DSE disclosure, the bank achieved a net profit of Tk280 crore in 2024, up from Tk236 crore in the previous year. Its earnings per share (EPS) increased to Tk3.17 in 2024, compared to Tk2.68 the previous year. 

The net asset value (NAV) per share stood at Tk24.61 as of 31 December 2024.

Today, the bank's share price closed at Tk19, down 2.56% on the DSE. Over the past year, the bank's share price ranged between Tk16.40 and Tk22.20.

The bank will hold its annual general meeting (AGM) on 24 June via a digital platform, with 14 May set as the record date for shareholder entitlements.

According to the bank, the retained portion of the proposed stock dividend will be used to strengthen its capital base under the BASEL III guidelines. This is aimed at expanding business capacity and maintaining regulatory compliance.

It also clarified that the stock dividend will be issued from accumulated profits only, not from revaluation reserves or unrealised gains, and will not reduce the bank's paid-up capital.

Jamuna Bank to Issue Tk1,000 Crore Bond

In a separate disclosure on the DSE website, Jamuna Bank announced its plan to raise Tk1,000 crore through the issuance of a non-convertible, coupon-bearing, subordinated, redeemable bond.

The bond will be issued via private placement, meaning it will be offered to a select group of investors rather than the general public. The issuance is subject to approval from relevant regulatory authorities.

The primary objective of the bond issuance is to strengthen the bank's capital base and help it meet the Tier-II capital requirements under the Revised Regulatory Capital Framework set by the central bank or other regulatory bodies.

The bank's board has already approved the proposal. Appointment of the issue manager and other related processes will be finalised in due course.

As of March, the bank's shareholding structure stands as follows – sponsor-directors hold 45.16%, institutional investors 4.70%, foreign investors 0.23%, and general investors 49.91%.