Premier Bank skips dividend for first time in 18 years
Amid ongoing financial setbacks, BB reconstructed the bank’s board on 19 August this year
Premier Bank has declared no dividend for 2024 — the first time since its stock market debut in 2007 — amid sharp profit declines and continued losses.
According to the price-sensitive statement filed on the Dhaka Stock Exchange (DSE) on Thursday, the bank's board of directors, in a meeting on 27 August, decided not to pay dividends, citing a provision shortfall against classified loans as the main reason for skipping shareholder returns.
For shareholders, the absence of dividends for 2024 comes as a stark departure from the bank's track record. In 2023, Premier Bank declared a 12.50% cash dividend, continuing a tradition of annual payouts since its listing.
The bank's annual general meeting (AGM) has been scheduled for 13 October 2025, with 17 September set as the record date.
Keep updated, follow The Business Standard's Google news channel
Premier Bank reported consolidated earnings per share (EPS) of Tk1.09 for 2024, down steeply from Tk3.37 in 2023. Its net profit plunged by 68% year-on-year to Tk134 crore from Tk415 crore.
Net asset value (NAV) per share stood at Tk21.73 at the end of the year, reflecting a 1.58% decline. The bank also reported a negative net operating cash flow per share of Tk4.55, underscoring the strain on its core operations.
The trend worsened in the first half of this year. From July to June 2025, the bank posted a consolidated loss of Tk1.33 per share.
Over the January–June period, its total loss amounted to Tk136.56 crore, translating into a loss per share of Tk1.11.
By June 2025, the bank's NAV per share had fallen further to Tk20.53, marking an 8% decline in six months.
Premier Bank's loan book during this time stood at Tk33,921 crore, while total deposits were Tk35,700 crore.
The management attributed the dismal results to rising interest expenses and reduced earnings from foreign exchange operations, two critical drivers that have weighed heavily on profitability across the banking industry.
Premier Bank's share performance mirrored the bleak financial picture. On Thursday, its share price dropped by 1.45% to Tk6.80, hovering near a one-year low.
The bank's paid-up capital is Tk1,233.43 crore, while its market capitalisation stands at Tk838 crore. Based on its half-yearly unaudited financial statement, the bank's price-to-earnings ratio has entered negative territory.
BB reconstructs bank's board
The challenges facing Premier Bank prompted strong regulatory intervention earlier this month. On 19 August, Bangladesh Bank dissolved the bank's existing board of directors and appointed a six-member reconstituted board, citing severe weaknesses in governance, failure to maintain loan discipline, and overall mismanagement.
The newly formed board includes Arifur Rahman as a director representing sponsor shareholders. Later, he was elected as chairman of the bank.
Before the restructuring, the board was chaired by Mohammad Imran Iqbal, with Jamal G Ahmed serving as vice-chairman. Other members included industrialist and former lawmaker Abdus Salam Murshedy, Shafiqur Rahman, Shaila Shelley Khan, Yeh Cheng Min, and Mohammed Ahmed Ali.
Analysts say the coming months will be crucial as the new board attempts to stabilise operations, restore depositor confidence, and improve asset quality.
Whether Premier Bank can overcome its governance failures and financial setbacks remains uncertain, but the regulatory shake-up signals that authorities are determined to enforce discipline in a sector plagued by persistent vulnerabilities.
