National Housing declares 10% cash dividend on stronger earnings

National Housing Finance PLC has recommended a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year despite ongoing challenges in Bangladesh's non-bank financial institution (NBFI) sector.

The decision was approved at a board meeting held today (24 June), according to a price-sensitive information (PSI) disclosure filed with the stock exchanges.

The company's annual general meeting (AGM) will be held virtually on 15 September at 12pm to seek shareholder approval for the dividend, while the record date has been fixed for 23 July.

Shares of the company rose 1.08% to Tk28.10 on the Dhaka Stock Exchange yesterday.

National Housing reported a significant improvement in profitability in 2025. Earnings per share (EPS) increased to Tk0.74 from Tk0.02 (restated) a year earlier.

Its financial position also strengthened, with net asset value (NAV) per share rising to Tk17.06 from Tk16.32 (restated). Net operating cash flow per share (NOCFPS) turned positive at Tk6.89, compared with a negative Tk19.70 (restated) in 2024.

Analysts said the turnaround in earnings and cash flow reflects an improvement in the company's core operations and financial health at a time when many NBFIs continue to face liquidity pressures, higher funding costs and slower credit growth.

The company also disclosed its first-quarter results for 2026. During the January-March period, EPS stood at Tk0.23, slightly higher than Tk0.22 (restated) in the corresponding quarter of the previous year.

However, NOCFPS declined to Tk4.77 from Tk8.61 (restated) over the same period. The company attributed the drop to lower customer deposits, which reduced operating cash inflows.

Despite the decline in cash flow, NAV per share increased further to Tk17.29 as of 31 March 2026, up from Tk17.06 at the end of December 2025.

Established in 1998, National Housing Finance is a specialised housing finance institution that provides loans for houses, apartments and residential plots. The company has also diversified into deposit mobilisation, SME financing, lease financing and project financing, helping broaden its revenue base beyond traditional mortgage lending.

The latest financial results show improvements in the company's profitability, asset base and cash flow position, while it maintained a stable cash dividend for shareholders. Sustaining earnings growth and strengthening deposit mobilisation are expected to remain important factors for the company's future performance.