Due to the increase in interest rates on loans, the interest income of the private sector Dhaka Bank has increased by Tk 664 crore or 31.5 percent in a year. At the same time, income from investment in government treasury bill bonds has also increased.The bank’s income from this sector has increased by Tk 192 crore, or 45 percent, in the space of a year, according to last year’s financial report approved by the bank’s board of directors on Wednesday.
Growth in Interest Income and Expense
According to the bank’s financial report, at the end of last year, the bank earned Tk 2,773 crore from interest on loans. Interest Income from Loans:
•In 2023: BDT 2,109 crore
•In 2024: BDT 2,773 crore
•Yearly Increase: BDT 664 crore
•Growth Rate: Approximately 31.5%
Along with the increase in interest income on loans, the cost of Dhaka Bank has also increased due to the increase in interest on deposits. Last year, the bank spent Tk 2,590 crore on interest on deposits.
Income from Government Bills and Bonds:
•In 2023: BDT 423 crore
•In 2024: BDT 615 crore
•Yearly Increase: BDT 192 crore
•Growth Rate: 45%
Interest Expense on Deposits:
•In 2023: BDT 1,443 crore
•In 2024: BDT 2,059 crore
•Yearly Increase: BDT 616 crore
•Growth Rate: 43%
Profit Drops Due to Higher Provisioning
Meanwhile, Dhaka Bank’s operating profit increased by Tk 259 crore in a year due to a significant increase in income from loan interest and investments.
Operating Profit:
•In 2023: BDT 810 crore
•In 2024: BDT 1,069 crore
•Yearly Increase: BDT 259 crore
•Growth Rate: 32%
Net Profit:
•In 2023: BDT 167 crore
•In 2024: BDT 128 crore
•Yearly Decline: BDT 39 crore
Reason: Higher provisioning and tax costs
Provisioning Against Classified Loans:
•In 2023: BDT 403 crore
•In 2024: BDT 726 crore
•Yearly Increase: BDT 323 crore
•Growth Rate: 80%
Dividend to Shareholders (Declared for 2024):
•Total Dividend: 10%
•Bonus Share: 5%
•Cash Dividend: 5%
•In 2023: 10% cash dividend
In 2023, the bank paid a 10 percent cash dividend to shareholders. This time too, the same amount of dividend has been paid, but it is a combination of bonus and cash. The bank’s decision to pay a 5 percent cash dividend for last year will cost the bank more than Tk 500 crore.
Dhaka Bank is a company listed on the stock exchange. Its current market price is 10 taka and 20 paisa per share. The bank’s share price increased on the main stock exchange, Dhaka Stock Exchange (DSE), on Thursday, following the news of the dividend announcement.That day, the price of each share of the bank in the Dhaka market increased by 4 percent or 40 paisa.
