Mercantile Bank Limited’s board of directors has declared 10 per cent cash and 5 per cent stock dividend for the year which ended on December 31st of 2020.
The bank has stated that the final approval of the dividend will come during the 22nd annual general meeting (AGM) which is scheduled for April 28th at 11 am by using hybrid system. Hybrid system is a combination of physical presence and digital platform. The record date is stated to be on the 5th of April.
As per the bank annual report, consolidated earnings per share (EPS) of Tk 2.26, consolidated net asset value (NAV) per share of Tk 22.61 and consolidated net operating cash flow per share (NOCFPS) of Tk 4.16 for the year ended on December 31, 2020, as against Tk 2.26 (restated), Tk 22.34 and Tk 2.22 respectively for the same period in 2019. The bank has also informed that it declared the stock dividend to strengthen Tier-1 capital base as per the Basel-III compliant for the coming year.
The bank stated that the bonus shares were declared out of accumulated profit and not declared the capital from the reserve or revaluation reserve or any other unrealized gain or out of profit which were earned prior to incorporation of the bank or through reducing the paid-up capital or through doing anything so that the post dividend earnings become negative or a debit balance.
Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 2004, closed at Tk 12.80 on Thursday. Its shares traded between Tk 10 and Tk 14.20 in the last one year. 11 per cent cash and 5 per cent stock dividend was disbursed by the bank in 2019.
The paid-up capital of the bank is at Tk 9.84 billion (Tk 984 crore) and the authorized capital is Tk 10 billion (Tk 1000 crore) while the total number of securities was at 984.01 million.
The DSE data showed that the sponsor-directors own 37.71 per cent stake in the bank, while the institutional investors own 22.89 per cent, foreign investors 4.08 per cent and the general public 35.32 per cent as of February 28, 2021.