Islami Bank yet to publish financials for 2024, subsequent quarter
Deadlines for publishing 2024 annual financials, dividend declaration and first-quarter financials for 2025 already lapsed
Islami Bank Bangladesh has sought a three-month extension to publish its annual financials for 2024 and first-quarter financials for 2025, citing unavoidable circumstances, as the statements were not adopted at its board of directors' meeting held on 29 May.
As a result, despite repeated attempts, the private sector lender failed to publish its financials, leaving shareholders in the dark.
Since the fall of the previous government in August, Islami Bank Bangladesh has published only one quarterly statement – for July to September. Eight months have since passed without any further financial disclosures.
The deadlines for publishing its 2024 annual financials, dividend declaration and first-quarter financials for 2025 have already lapsed, as per listing regulations.
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The listing regulations, listed companies are allowed 120 days to publish annual financials and 45 days for first-quarter reports – both of which have now expired.
In response, the lender has sought a three-month extension to finalise its statements.
In case of failure to comply, companies must obtain permission from the Bangladesh Securities and Exchange Commission (BSEC) to publish their financials.
Otherwise, they are required to pay a penalty of Tk5,000 per day for continued non-compliance.
In a disclosure today (1 June), the lender said the agenda item relating to consideration/adoption of the annual audited financial statements of the bank for the year ended on 31 December 2024 was not resolved in the meeting (adjourned) held on 29 May due to some unavoidable circumstances.
Meanwhile, the bank sought three months' extended time to the regulatory authorities (the Bangladesh Bank and the BSEC) for finalisation of the financial statements, the disclosure reads.
Board meeting rescheduling
In a disclosure on 20 April, Islami Bank Bangladesh scheduled its board of directors' meeting on 28 April to consider, among others, audited financial statements of the company for the year ended on 31 December 2024.
On the day of the meeting, the bank rescheduled the board meeting to 30 April.
On the rescheduled date, its board meeting was held through a hybrid system to adopt audited financial statements.
However, due to non-obtention of some vital required decisions from the Bangladesh Bank in connection with the finalisation of audited financial statements before the disposal of the agenda item, the board could not finalise the accounts of the company in the said meeting under the compelling situation.
As such, the board of directors of the bank was unable to disclose any price-sensitive information till the disposal of the issue by the Bangladesh Bank, the primary regulator of the lender, said its disclosures on the stock exchange website.
Tk100cr loss in Jul-Sep
Islami Bank Bangladesh incurred a loss of Tk100 crore in the July-September quarter of 2024 with per per-share loss of Tk0.62, an unprecedented event for the country's largest private lender in over three decades.
As per the consolidated basis (including income of its subsidiaries), its loss came down to Tk89 crore during the quarter. Its consolidated loss per share during the quarter was Tk0.55.
The bank said in the statement that it incurred a loss in July-September as total provision against investment – loans and advance – increased compared to the previous corresponding period.
At the end of the first nine months of 2024, its consolidated net profit stood at Tk267 crore, which was 39% lower than the previous year at the same time.
At the end of September, its consolidated earnings per share stood at Tk1.66.
On 22 August, Islami Bank Bangladesh was freed from the grip of the controversial S Alam Group after nearly seven years, with the Bangladesh Bank appointing a new five-member board of directors to oversee the bank's operations.
