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

Thursday
May 29, 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
THURSDAY, MAY 29, 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

  • 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
  • Agrani Insurance, Prime Insurance declare dividends for 2024
  • Eastland Insurance declares 10% cash dividend

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

  • US President Donald Trump speaks during a swearing-in ceremony of Special Envoy Steve Witkoff in the Oval Office at the White House in Washington, DC, US, May 6, 2025. REUTERS/Kent Nishimura/File Photo
    US court blocks most Trump tariffs, says president exceeded his authority
  • Infograph: TBS
    Businesses set for relief as interim govt eyes major tax & fine cuts
  • He said there was a need to build a new architecture—one that promotes inclusion, empowerment, and sustainability at every level, adding that this is where Asia could lead. Photo: UNB
    Transform Asia into a beacon of shared prosperity: CA Yunus tells Nikkei Forum in Tokyo

MOST VIEWED

  • Google Pay. Photo: Collected
    Google Pay likely coming to Bangladesh soon
  • IFIC Bank receives Tk6,000 cr in new deposits in six months
    IFIC Bank receives Tk6,000 cr in new deposits in six months
  • Dhaka areas at a gridlock on Wednesday, 28 May 2025. Photo: Syed Zakir Hossain/TBS
    BNP, Jamaat rallies: Traffic clogs Dhaka roads, including Motijheel, Paltan, Dainik Bangla intersection
  • Abdul Awal Mintoo, chairman of National Bank Limited. Sketch: TBS
    'Regulatory support must for National Bank to restore depositors' confidence'
  • Mohammad Abdul Mannan, chairman FSIB Ltd. Sketch: TBS
    FSIB to bounce back soon
  • Mohammad Mamdudur Rashid, managing director and CEO, UCB. Sketch: TBS
    Customers’ trust and confidence fueling deposit growth at UCB

Related News

  • 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
  • Agrani Insurance, Prime Insurance declare dividends for 2024
  • Eastland Insurance declares 10% cash dividend

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

2d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

3d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

3d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

3d | Wheels

More Videos from TBS

The fight between two brothers; Adidas vs Puma

The fight between two brothers; Adidas vs Puma

10h | Others
Trump is again keen to make Canada the 51st state

Trump is again keen to make Canada the 51st state

11h | Others
Trump's tariff strategy and Europe's investment politics, violence or negotiation?

Trump's tariff strategy and Europe's investment politics, violence or negotiation?

12h | Others
Rumours surrounding the Club World Cup: Which club will Ronaldo join?

Rumours surrounding the Club World Cup: Which club will Ronaldo join?

12h | Others
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