• Sunday, Jul 12, 2020
  • Last Update : 09:33 pm

ICB faces Tk150cr in losses

  • Published at 09:50 pm January 27th, 2020
Investment Corporation of Bangladesh (ICB)

The company’s earnings decreased due to fall in capital gain and increase in loan interest, a top company official says

The state-owned Investment Corporation of Bangladesh (ICB) has incurred a loss of Tk150.14 crore in the first six months of the current fiscal year (FY20) compared to the same period of previous year.

The company made the official disclosure in a post on Dhaka Stock Exchange website on Monday.

After the announcement, the share prices of the financial institution plunged by 3.71%.

The consolidated earnings per share (EPS) of ICB stood Tk1.96 in the negative, as per the unaudited report.

On the other hands, ICB’s net profit after tax was Tk43.85 crore in the same period of last year and consolidated EPS was Tk0.57.

For October-December period of 2019, ICB’s consolidated loss per share was Tk0.21 as against the EPS of Tk0.20 for the same period of previous year. 

The company’s earnings decreased due to fall in capital gain and increase in loan interest, a top company official says.

ICB Managing Director Md Abul Hossain told Dhaka Tribune that the earnings declined as the stock market plunged. There was also a crisis of cash affecting its profitability. The main challenge of the ICB now was to overcome the financial crisis and support the stock market, he added.

“We can offset our huge losses if the market makes a turn around,” he added. 

The government formed the ICB in 1976 to support the market with liquidity intervention.

The company was listed on the DSE in 1977. The share price closed at Tk82.10 on Monday. The company disbursed 10% stock dividend for its shareholders for the FY2018-19. During the period, ICB earned consolidated net profit of Tk 60.13 crore. 

The company’s paid-up capital is Tk76 crore. The sponsor-directors own 69.81% stake in the company, while government 27%, institutional investors own 1.64% and the general public 1.55% as of November 30, 2019.

Expressing his concerns, ICB Chairman MojibUddin Ahmed told Dhaka Tribune: “Our major commercial activities are in the stock market. Income from this decreased due to the downwards trend that prevailed in the stock market during the period.”

The interest income, dividend income, capital gain and income from fees and commission are major sectors of income of the company.

According to the latest annual report, during FY18, ICB’s net profit after tax was  Tk 416.33 crore, Tk461.57 crore in FY17 and Tk331.64 crore in FY16.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail