Hefty operating losses, yet FDR income keeps DSE buoyant
Meanwhile, a year-on-year comparison of the financials showed that the net profitability of DSE eroded by around 46% in FY25 or almost halved from Tk61.3 crore in FY24
The Dhaka Stock Exchange (DSE), the country's prime bourse, has incurred hefty operating losses, but its non-operational income, originating from investment in fixed income instruments, FDRs, has kept it afloat and in the green.
According to DSE sources, the bourse incurred Tk49 crore in losses from its core operations – including transaction fees, charges from listed companies, data sales, licensing fees, and training academy income.
However, its non-operating income – from interest on fixed deposit receipts (FDRs) and bond investments of around Tk100 crore, plus rental income exceeding Tk10 crore – surged significantly, helping the DSE post a profit of approximately Tk33 crore, the sources added.
Meanwhile, a year-on-year comparison of the financials showed that the net profitability of DSE eroded by around 46% in FY25 or almost halved from Tk61.3 crore in FY24.
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Last week, the board of the DSE approved its 2024-25 financials, which reported an earnings per share (EPS) of Tk0.18, and recommended a cash dividend of less than 2% for its shareholders.
Several directors and officials attributed the DSE's losses primarily to capital market volatility over the year, driven by political instability and economic factors following the regime change in August 2024.
A director at the DSE board, on condition of anonymity, told TBS, "Due to the change in the political regime and shifts in regulatory authorities, the country's capital market passed a volatile year, and turnover remained very limited. As a result, the DSE's main earnings from share transaction fees declined significantly."
"Despite the blow to its operating income, DSE's non-operating income — mostly driven by FDRs — increased significantly to Tk100 crore, which was Tk77 crore in FY24. Largely, riding on its non-operating income, the bourse has managed to post a profit in FY25, although it had declined substantially compared to the previous year," he said.
The latest annual financials for FY25 of the DSE are yet to be published publicly.
According to directors, the DSE throughout FY25 managed to earn around Tk100 crore as revenue, which is around a 20% decline from Tk127 crore in the previous fiscal year.
With bearing its operational expenses and depreciation, and amortisation, its operating loss stood at around Tk50 crore, they said.
Its last annual report for FY24 showed that it had incurred a loss of Tk20.51 crore in its operational activities or core businesses. But it reported a profit of Tk61.3 crore, which was also driven by its non-operating income – FDRs.
The report showed that at the end of June 2024, it had Tk832 crore investment in FRDs and bonds.
The highest FRDs are kept in Mercantile Bank, worth Tk139.24 crore or 16.73% of its total FRDs, and Tk91 crore in United Commercial Bank, Tk85 crore in BRAC Bank and Tk82 crore in The Premier Bank.
It has also invested as FDRs in four banks, which are in the process of merger – Tk38 crore in Exim Bank, Tk18 crore in Union Bank, Tk10 crore in Global Islami Bank and Tk4 crore in Social Islami Bank.
The paid-up capital of the DSE is Tk1,803 crore divided by 180.38 crore shares, according to its financial statements.
Currently, the shareholders of the DSE include brokerage houses and its strategic partners – the Shenzhen Stock Exchange (SZSE) and the Shanghai Stock Exchange (SSE) – which together form a joint consortium.
At present, around 250 brokers of the DSE own a 40% stake, the Chinese consortium holds 25%, and the remaining 35% remains in a block that must be sold through an initial public offering (IPO), which is yet to take place.
The available data of the DSE showed, the recommended dividend below 2% for FY25 is the lowest since the 2016-17 fiscal year; in that year, it had paid a 10% cash dividend to its shareholders.
Since then, gradually, the dividend payout has been declining. In FY22, it had paid 6% cash dividend, 4% in FY23, and lastly 3.3% in FY24.
Capital market situation
In FY25, the capital market experienced significant volatility. The previous Awami League government was ousted by a mass uprising in August 2024.
Right after the government's fall, the capital market saw a significant uptick, with increasing participation from both local and foreign investors. However, over the course of the year, the market experienced fluctuations due to various factors, including political issues and capital market policy-related issues.
According to DSE data, from 1 July 2024 to 30 June 2025, stocks were traded on 235 days, and turnover stood at Tk1.11 lakh crore, down 26% from the previous year.
The average daily turnover at the DSE was Tk472 crore, and the DSEX, the benchmark index of the DSE, fell by 490 points to close at 4,838 points, despite beginning FY25 at 5,328 points.
In FY25, the highest turnover was Tk2,010 crore on 11 August, and the lowest turnover was Tk159 crore on 24 July.
In the first half of FY24, average turnover was Tk559 crore and in the last half, average turnover was Tk384 crore, the DSE data showed.
