Sonar Bangla Insurance declares 10% dividend as earnings surge 245%

The board of directors of Sonar Bangla Insurance Limited has recommended a 10% dividend, comprising 5% cash and 5% stock, for the financial year ended 31 December 2025.

Despite the dividend declaration and a sharp rise in annual profitability, the general insurer's share price dropped by 4.85% yesterday (9 May) to settle at Tk35.30 on the Dhaka Stock Exchange (DSE) following the disclosure.

The company reported a stellar performance for the full year 2025, with its consolidated earnings per share (EPS) skyrocketing by 245% to reach Tk0.69, up from the Tk0.20 recorded in 2024. 

During the same period, the consolidated net asset value (NAV) per share stood at Tk20.02, while the net operating cash flow per share improved to Tk1.22 from Tk1.17 in the preceding year.

In its regulatory filing, the company said the stock dividend is aimed at reinvesting retained earnings to strengthen its paid-up capital base. The management also assured shareholders that the bonus shares will be issued from accumulated profits, not from any revaluation or capital reserves, thereby maintaining a healthy post-dividend balance sheet.

However, the company's most recent quarterly data suggests a slowdown in momentum. For the first quarter of 2026 (January–March), consolidated EPS fell to Tk0.26, marking a 41% decline from the Tk0.44 reported in the corresponding period of 2025. On a positive note, the quarterly net operating cash flow per share saw a significant improvement, rising to Tk0.50 from Tk0.19. As of 31 March 2026, the company's NAV per share inched up to Tk20.28.

To finalise the dividend and approve the audited financial statements, the insurer has scheduled its annual general meeting for 13 August. The record date for determining shareholder eligibility for the dividend has been set for 11 June.