IPDC Finance declares 10% dividends
Final approval will come at AGM scheduled on 16 May
IPDC Finance Limited has declared a 5% cash and 5% stock dividends for its shareholders for the year that ended on 31 December 2023.
The non-bank financial institution (NBFI) paid 10% cash the previous year.
The dividend payout was recommended at the company's recently held board of directors meeting.
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The stock dividend has been declared so that the retained amount can be utilised to support smooth operational cash requirement as well as portfolio growth, said the company in its earnings note.
Also, the company has declared a stock dividend out of its accumulated profit or retained earnings.
Stock dividend has been recommended to strengthen the capital base of the company for supporting future business growth as well as higher loans portfolio growth aspirations in 2024, said the company.
However, final approval of the recommended amount will come during a virtual annual general meeting (AGM) scheduled for 16 May. The record date for the distribution of the declared dividend among the shareholders has been fixed 24 April.
The company has reported EPS (earning per share) of Tk0.92, which was 62% lower than the previous year.
The financial statement revealed that the net profit declined primarily due to increased interest payments to depositors and lenders, alongside reduced income from investments, commissions, exchanges, and brokerages.
Furthermore, the downturn in the capital market, a significant income source for financial institutions, further exacerbated the decline in profits.
In 2022, IPDC Finance logged Tk90 crore in net profit after taxes, which was 2.27% higher than that of the previous year, double that of five years ago, and nearly nine times that of 2011.
At the end of 2023, IPDC's net asset value per share stood at Tk18.19.
Analysts said the NBFI industry has gone through a tough time in 2023 due to a pressure to pay more interest against the collected funds amid the inability to charge their borrowers more.
Listed in 2006, IPDC's stock price experienced a notable surge of 9.79% to close at Tk25.80 at the Dhaka Stock Exchange (DSE) on Thursday, compared to the previous day.
