Non-fund income boosts banks’ profit, dividend | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
May 31, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, MAY 31, 2025
Non-fund income boosts banks’ profit, dividend

Stocks

Rafiqul Islam & Ahsan Habib Tuhin
05 April, 2022, 09:30 pm
Last modified: 06 April, 2022, 03:02 pm

Related News

  • Southeast Bank’s profit drops 80% in 2024
  • Premier Bank declares no dividend due to shortfall in provisions
  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Dhaka Bank declares 10% dividend for 2024
  • Why ONE Bank skips dividend despite profit growth, share price slumps

Non-fund income boosts banks’ profit, dividend

According to the disclosures, the EPS of 10 out of these 13 banks has increased

Rafiqul Islam & Ahsan Habib Tuhin
05 April, 2022, 09:30 pm
Last modified: 06 April, 2022, 03:02 pm
Infograph: TBS
Infograph: TBS

Despite the slow growth in private sector investment amid the pandemic and less than expected loan recovery pace, most banks have posted growth in earnings per share (EPS) in 2021 riding on a record rise in the country's exports and imports.

Based on this growth, most banks have paid more dividends to their shareholders in 2021 than in 2020.

Of the 33 banks listed on the Dhaka Stock Exchange (DSE), 13 have released their audited annual accounts for last year.

According to the disclosures, the EPS of 10 out of these 13 banks has increased. IFIC Bank saw the highest growth of 122%, followed by Prime Bank, Mercantile Bank and Premier Bank.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

On the other hand, the EPS of United Commercial Bank and Jamuna Bank decreased. ICB Islamic Bank has been in losses for a long time, although the losses in 2021 have decreased.

"In 2021, we have received more support from the apparel sector. Because at this time the apparel sector has seen record exports. Imports have also increased. This has increased our non-funded income," M Reazul Karim, managing director of Premier Bank, told The Business Standard.

"Due to the deferral facility of the Bangladesh Bank, the bank did not have to go through such complications with defaulted loans. However, we are careful about what will happen in the days to come. And we are keeping the provisions accordingly. We have reduced the defaulted loan to 2% which has boosted the financial health of our bank," he added.

According to the Export Promotion Bureau (EPB), the country's apparel export witnessed around 30% growth to $35.57 billion in 2021. The growth trend is still going on in 2022.

Commenting on the financial results of 2021, Brac Bank Managing Director Selim RF Hussain said, "Brac Bank's 2021 results show that the bank is agile and resilient and has already stepped onto a strong growth path. Our sustainable banking and customer experience-based business strategies have served us well."

"Our 2021 performance, despite the unprecedented environmental challenges, indicates that the bank is much stronger today than it was two years ago when the pandemic started," he added.

The banking sector also earned a significant amount from its stock market investment. In 2021, the Dhaka Stock Exchange's (DSE) broad index DSEX jumped 19%.

South Bangla Agriculture and Commerce Bank's Managing Director Mosleh Uddin said in an interview with TBS that at present, the rate of return from the capital market is good. If the market is not manipulated by any vested quarter, like in 1996 or 2010, it is now possible to make a good profit from the stock markets.

Meanwhile, seven banks have paid more dividends to shareholders in 2021 than in 2020.

In 2020, the Bangladesh Bank had set a limit of 30% dividend, including 15% cash and 15% stock, in the pandemic which has been increased to 35% in 2021, including 17.5% cash and 17.5% stock.

Out of these seven banks, Uttara Bank has paid a maximum of 28% dividend, followed by Eastern Bank and Dutch Bangla Bank.

However, dividends have not made any impact on the share prices of banks. The share price of most of the banks fell the day after the announcement of the dividend.

However, stock market analysts say banks' shares are the most attractive for investment. This is because the price-earnings ratio in the banking sector is below 8% and the dividend yield is in a good condition.

A top official at a brokerage firm said investors wanted to double, triple or quadruple their profits in a matter of days. That's why they just run after capital gains. In doing so, they also lose their capital.

"This is a big problem in the stock market. However, the rate at which banks are declaring dividends cannot be obtained from FDR even after waiting for the whole year," he added.

Top News / Banking

Earnings per Share (EPS) / Profit growth / dividend

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infograph: TBS
    Tax exemptions for key industries to go, sweeping tax hikes planned
  • Chief Adviser Muhammad Yunus meets Japanese Prime Minister Ishiba Shigeru in Japan on 30 May 2025. Photo: CA Office
    Bangladesh, Japan to sign Economic Partnership Agreement by year-end
  • File photo of BNP BNP Standing Committee Member Amir Khasru Mahmud Chowdhury
    Speaking about country’s problems in foreign trips won’t solve them: Khasru takes jibe at Yunus

MOST VIEWED

  • BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
    BAT Bangladesh has to vacate Mohakhali HQ as SC rejects lease appeal
  • Bangladesh Chief Adviser Muhammad Yunus speaks to Nikkei Asia in Tokyo on 29 May. Photo: Nikkei Asia
    Bangladesh ready to buy more US cotton, oil to reduce trade gap: Yunus
  • Bangladesh targets global trade alignment with sweeping tariff changes
    Bangladesh targets global trade alignment with sweeping tariff changes
  • Matarbari 1,200MW coal-fired plant in Moheshkhali, Cox's Bazar. File Photo: Nupa Alam/TBS
    Supplier slapped with 5 conditions to unload rejected Matarbari coal shipment
  • US Embassy Dhaka. Picture: Courtesy
    Birth tourism not permitted on US visitor visa: US Embassy Dhaka
  • Six banks fail to pay dividends for 2024
    Six banks fail to pay dividends for 2024

Related News

  • Southeast Bank’s profit drops 80% in 2024
  • Premier Bank declares no dividend due to shortfall in provisions
  • Al-Arafah Islami Bank will not pay dividend for 2024
  • Dhaka Bank declares 10% dividend for 2024
  • Why ONE Bank skips dividend despite profit growth, share price slumps

Features

Babar Ali, Ikramul Hasan Shakil, and Wasfia Nazreen are leading a bold resurgence in Bangladeshi mountaineering, scaling eight-thousanders like Everest, Annapurna I, and K2. Photos: Collected

Back to 8000 metres: How Bangladesh’s mountaineers emerged from a decade-long pause

14h | Panorama
Photos: Courtesy

Behind the looks: Bangladeshi designers shaping celebrity fashion

16h | Mode
Photo collage of the sailors and their catch. Photos: Shahid Sarkar

Between sky and sea: The thrilling life afloat on a fishing ship

20h | Features
For hundreds of small fishermen living near this delicate area, sustainable fishing is a necessity for their survival. Photo: Syed Zakir Hossain

World Ocean Day: Bangladesh’s ‘Silent Island’ provides a fisheries model for the future

1d | The Big Picture

More Videos from TBS

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

Six Lakh Sacrificial Animals Ready in Sirajganj for Eid-ul-Adha

10h | TBS Stories
Six MoUs signed during Chief Advisor's visit to Japan

Six MoUs signed during Chief Advisor's visit to Japan

14h | TBS Today
Record migrant deaths in 2024

Record migrant deaths in 2024

1d | Podcast
Govt likely to trim subsidies in new budget

Govt likely to trim subsidies in new budget

17h | TBS Insight
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net