Bay Leasing incurs Tk440cr loss in 2024

Bay Leasing and Investment Ltd, a non-bank financial institution, reported a loss of Tk440 crore in 2024, which was 429% higher than the previous year's loss.

Bay Leasing faced a loss for the first time in 2021, and since then, it has been unable to return to profitability.

According to the price sensitive statement filed on the Dhaka Stock Exchange (DSE), during last year, the company's core business, which is net interest income, experienced a significant decline due to several large loan defaults.

Besides, the gradual increase in the cost of borrowing further contributed to the company's financial losses.

Following the skyrocketing loss, the board of Bay Leasing failed to recommend any dividends for the year 2024.

However, despite posting a loss and no dividend declaration, Bay Leasing shares jumped by 4.88% to reach Tk4.30 on Sunday at the DSE.

In 2021, it recommended a 5% stock dividend despite incurring a loss of Tk14 crore, but the stock market regulator did not approve it. The company has since not declared any dividend to its shareholders.

In 2024, the company reported its consolidated loss per share at Tk31.16, which was Tk5.88 a year ago.

Due to the continuous losses, its consolidated net asset value turned negative, which was Tk25.20, meaning its liabilities exceeded its assets. However, its net asset value per share was Tk6.01 positive.

Bay Leasing was listed in 2009. Of its total shares, sponsors and directors hold 19.64%, while institutional investors have 25.38% and the general investors have 54.98% as of the company's May shareholding report.