National Housing Finance revises 10% cash dividend to stock dividend amid profit decline

National Housing Finance PLC, a non-bank financial institution, has revised its previously declared 10% cash dividend to a stock dividend for 2024.

So, with the fresh declaration, shareholders of National Housing Finance will receive a 10% stock dividend instead of a cash dividend.

Previously, despite a 97% decline in its net profit for 2024 compared to the previous year, the listed company had recommended a 10% cash dividend in July, subject to a no-objection certificate (NOC) from the Bangladesh Bank.

In a disclosure today, the company said the central bank permitted a 10% stock dividend in place of the cash dividend.

Following the announcement, its share price fell by 3.52% to Tk24.70 each on the Dhaka Stock Exchange (DSE).

The reason for stock dividend is to continue the Tier-1 capital and to reinvest in the business operation, the disclosure read. 

According to its 2024 financials, National Housing Finance's profit plummeted significantly as provision against loan and advances increased in 2024. 

In 2024, it had maintained Tk24.78 crore provision, which was significantly higher from Tk11.92 crore in 2023. 

Finally, its net profit declined to Tk29 lakh with an earnings per share of Tk0.03 for 2024, which was Tk12.06 and Tk1.03 respectively. 

In the first half of 2025, it also reported a decline in its profit to Tk5.23 crore with an EPS of Tk0.45, lower from Tk6.96 crore and Tk0.60 respectively in the same time of the previous year. 

In 26 August, United Commercial Bank, a corporate sponsor of National Housing Finance, had expressed its intension to sell its entire stake of 56.35 lakh shares of the company at prevailing market price through the DSE. 

However, it declared to sell the stake on 24 July to sell within 30 working days.