Stocks
Bank Asia to Issue Tk800cr Bond
Bank Asia PLC, a leading private sector bank, has announced plans to issue a Tk800 crore bond to strengthen its capital base through private placement. This floating rate non-convertible subordinated bond, intended to raise regulatory capital (Tier-2), aims to help the bank meet its Basel-III requirements.
The decision was approved by the board of directors during a meeting on June 4, as disclosed in stock exchanges on Wednesday, June 5. The seven-year term bonds are subject to approval from the Bangladesh Securities and Exchange Commission (BSEC) and the Bangladesh Bank.
Subordinated bonds, primarily issued by banks, dominate the local bond market, aiding lenders in building their mandatory tier-2 capital base within a specific tenure. The Bangladesh Bank’s implementation of Basel-III ensures that banks maintain sufficient capital to avert systemic risk.
Basel-III is an international regulatory accord introducing reforms to mitigate risk within the global banking sector by requiring banks to maintain proper leverage ratios and reserve capital levels.
For the first quarter of 2024, Bank Asia PLC reported a profit of Tk77.88 crore, a 41% decrease compared to the same period the previous year. Despite a 33.63% increase in operating income to Tk634.77 crore, the earnings per share (EPS) dropped to Tk0.67 from Tk1.14 in the first quarter of 2023.
The company attributed the decline in EPS to higher provisions, which rose to Tk192 crore from Tk45 crore in the same quarter of the previous year.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
