Standard Bank posts 245% growth in its first quarterly profits

Standard Bank Ltd has recently announced its first quarterly financial results, posting a growth of 245 percent in net profit compared to the same period last year.

The bank generated Tk36.4 crore – Tk0.38 per share – in net profit during the quarter that ended on March 31, 2020, against Tk10.53 crore – Tk0.11 per share – in the first quarter of 2019.

A surge in net profits resulted from Standard Bank's cautiousness in selecting clients, an official of the bank told The Business Standard.

"Hence, we witnessed a fall in defaulted loans, coupled with an increase in the loan recovery segment," he added.

At the end of the first quarter, net asset value per share of the bank stood at Tk17.38. However, the bank's net operating cash flow per share was negative Tk5.65.

The board of directors of the bank held an online meeting on Thursday amid the ongoing coronavirus pandemic.

It is scheduled to hold its annual general meeting on May 18 for approving the recommended dividends of 5 percent cash and 5 percent stock to its shareholders for the year 2019.

Standard Bank will also hold an extra general meeting on the same date for obtaining the permission of shareholders on converting the bank to a full-fledged Islamic bank from the current conventional bank. The central bank has already provided its permission in this regard. 

Sponsors and directors together held 39.63 percent shares of the bank as of last February. The institutional investors, foreign investors and general investors own 21.96 percent, 1.26 percent and 37.15 percent shares respectively as of February 2020.

The closing price of Standard Bank shares was Tk8.80 on the Dhaka Stock Exchange, while the bank's shares hit their highest at Tk11.50 last year.