The imposed rate cap has lowered banks' profitability. Bangladesh Bank imposed a rate cap from March 1 2020. Hence, Q2 2020 was the first quarter with this rate cap. Our coverage NPAT has decreased by 30% YoY in this quarter driven by a 34% fall in net interest income (excluding government securities interest income). Among our coverages, Prime Bank reported an 88% YoY fall in NPAT followed by BRAC (75% YoY fall) and CITY (71% YoY fall) in Q2 2020. DUTCH NPAT fall was lowest (2% YoY) followed...
To maintain liquidity for executing the stimulus package declared by the government and to strengthen the capital base, Bangladesh Bank (BB - the central bank of Bangladesh) has introduced some conditions for disbursing dividend of the year 2019 by scheduled banks. Table 1: Summary of the regulation CAR (inclusive of Conservation Buffer)Deferral FacilityMaximum DividendCAR ≥ 12.5% Not Availed 15% Cash (BDT 1.5); 30% Total 11.25%≤ CAR
Interest cap and Covid-19 create a challenging business environment.Bangladesh Bank (BB), the central bank of Bangladesh, finally implemented the interest rate cap from 1 April, intending to promote industrialization and spur private sector credit growth. However, this rate cap will lower the banks' profitability. On the other hand, the outbreak of Covid-19 has impacted business significantly due to the lockdown in both local and foreign business activities. Almost all types of domestic busin...
A director at United Commercial Bank bought 361,000 shares at 0.000BDT and the significance rating of the trade was 57/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ...
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