IFIC Bank unable to recommend dividends for 2024 amid loss
Board meeting unable to recommend dividend
IFIC Bank has reported a loss of Tk500 crore in the January–March quarter of this year, primarily due to a deterioration in asset quality.
According to sources, the bank disclosed its unaudited quarterly financial statement at a board meeting on 29 May. During the first quarter, its consolidated loss per share stood at Tk2.60, compared to an earnings per share of Tk0.21 in the same period last year.
The bank's consolidated net asset value (NAV) per share also declined by 18% to Tk15.63, reflecting the impact of the mounting losses. At the same board meeting, IFIC Bank was unable to recommend any dividend for the previous year due to the losses it incurred.
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For the full year 2024, the bank posted a consolidated loss of Tk121 crore, a sharp reversal from the Tk300 crore profit it recorded the year before. Its consolidated loss per share for the year stood at Tk0.63.
To approve the financial statement and decide on dividends, IFIC Bank will hold its annual general meeting (AGM) on 11 September. The record date for shareholder eligibility is set for 17 July.
In September last year, the Bangladesh Bank dissolved IFIC Bank's board, then headed by Salman F Rahman, as part of efforts to reform the banking sector and promote good governance. A six-member team was appointed to oversee the bank's policies and operations.
Salman, who had chaired the board since 2015, was removed alongside the rest of the board. Currently, IFIC Bank has a paid-up capital of Tk1,922 crore and 192 crore outstanding shares. Of these, 32.75% are held by the government, 21.09% by institutional investors, 0.63% by foreign investors, and 45.53% by general shareholders.
Salman personally holds 3.66 crore shares, while his companies – New Dacca Industries and Tradenext International—hold 3.86 crore and 3.77 crore shares, respectively.
