Pubali Bank PLC turned a record profit of Tk 6.95 billion in 2023, the highest since its listing on the stock market, riding on higher interest income along with significant earnings from the government securities.
The lenders consolidated profit also surged by 23 per cent, compared to the previous years profit of Tk 5.65 billion.
Accordingly, its consolidated earnings per share stood at Tk 6.76 for 2023, up from Tk 5.49 in the year before, according to a price sensitive statement published on Thursday.
Based on the impressive profit, the banks board declared a 25 per cent dividend (12.5 per cent cash and 12.5 per cent stock dividend) for 2023, the highest dividend after 2010 when the bank paid a 35 per cent stock dividend.
"Stock dividend has been recommended to strengthen the capital base of the bank for supporting future business growth and also to improve certain regulatory ratios," said the bank in its earnings note.
The interest rate spreads have widened after the lending rate cap was lifted in July last year, which enhanced the net interest income of most banks.
The bank has set its priority to continue implementation of its growth strategy with particular emphasis on improving deposit mix, reducing cost of funds, diversifying its loan portfolio and strengthening overall risk management process.
To approve the dividend and audited financial statements, the bank will hold an annual general meeting on June 5, with the record date set for May 12.
The net operating cash flow per share, a measure of the banks ability to generate cash from its operations, stood at negative Tk 2.88 in 2023, up from negative Tk 3 per share in the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 46.33 per share in 2023, up from Tk 41.96 in 2022.
The banks price earnings (PE) ratio stood at 5.12 as of Thursday, which is much lower than the market average. Currently, the overall markets PE stood at around 12.
