ICB narrows losses to Tk117cr in H1
This marks an improvement from the Tk211.33 crore consolidated loss it incurred in the previous year, with a loss per share of Tk2.44
The Investment Corporation of Bangladesh (ICB), a state-owned non-bank financial institution mandated to invest in the capital market, incurred a consolidated loss of Tk117.55 crore in the first half of the current fiscal year 2024-25.
This marks an improvement from the Tk211.33 crore consolidated loss it incurred in the previous year, with a loss per share of Tk2.44.
On a solo basis, the corporation's losses stood at Tk148.11 crore in H1, which is also an improvement from the Tk228.48 crore loss in the same period of the previous fiscal year.
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According to the institution's unaudited half-yearly financial report,its consolidated losses were lower than the solo losses, mainly due to increased income and profits from its subsidiaries.
An ICB official attributed the improvement to higher capital gains on stocks. However, he noted that the continued downturn in the capital market remained a significant challenge, restricting ICB's ability to sell shares.
Oct-Dec financials
As per the ICB's report, its consolidated net loss for the October-December quarter stood at Tk42.26 crore, with a loss per share of Tk0.49.
In contrast, the institution had recorded a profit of Tk25.19 crore during the same quarter in the previous year, with earnings per share (EPS) of Tk0.29.
FY24 financials
Despite facing a substantial loss of Tk267 crore in the first nine months of FY24 – primarily due to lower capital gains – ICB managed to post a profit of Tk32.28 crore, ending the year in the green by recovering its previous losses. However, its consolidated profit for the entire fiscal year was 58% lower than the previous year.
This turnaround was driven by capital gains, dividend income – mainly from multinational companies – and lower provisioning against loans, according to ICB officials.
Struggles amid market downturn
ICB, one of the biggest institutional investors in the capital market, has been struggling for years owing to bad investment choices in listed companies, junk stocks, and fixed deposits in weak non-bank financial institutions.
Moreover, with the Bangladesh Securities and Exchange Commission (BSEC) imposition of a floor price, it faced another blow, as the corporation was not able to sell shares from its holdings.
The floor price mechanism mainly limits the price at which a share can be sold.
Initially introduced in 2020 and reimposed on 28 July 2022 after the start of the Ukraine war in February 2022, the floor price was aimed at preventing a free fall in stock prices but also restricted liquidity in the market.
