Global Islami Bank has withdrawn its earlier proposal of a 5% stock and 5% cash dividend for 2023 after a newly appointed auditor revealed substantial losses of Tk2,259 crore, contradicting prior profit claims under the former S Alam Group-led board. The bank also posted a Tk1,308 crore loss in 2024 due to rising classified loans. As a result, no dividends will be paid for 2023 or 2024. The bank postponed its AGM and, failing to hold it, its shares have been placed in the Z category. Since its 2022 IPO, the bank’s shares have dropped from Tk10 to Tk3.30.
In the recently revised financial statements, a newly appointed auditor revealed that the bank—formerly under the control of S Alam Group—had actually suffered substantial losses in 2023.
Global Islami Bank has opted to withdraw its earlier proposal of a 5% stock dividend and 5% cash dividend for 2023, deciding instead to recommend no dividend to shareholders.
Following a query from the Dhaka Stock Exchange (DSE), Global Islami Bank decided on Thursday to propose no dividend for 2023, as disclosed by the bank on the DSE yesterday.
A newly appointed auditor, brought in by the bank’s reconstituted board, uncovered significant losses in 2023, contradicting earlier profit announcements. Previously controlled by the S Alam Group, the bank’s former board had recommended a 10% dividend in April 2024 based on inflated financials showing a Tk128 crore profit. However, the audit revealed an actual loss of Tk2,259 crore for the year.
The declared dividends were set for shareholder approval at an Annual General Meeting (AGM) scheduled for 8 August, with the stock dividend also requiring commission approval. While the commission approved the stock dividend, the bank postponed the AGM a day before on 7 August, citing unavoidable circumstances.
Following the ousting of the Awami League-led government on 5 August last year and the subsequent reconstitution of the board, the bank failed to hold the AGM, blocking approval of the earlier dividend declaration.
According to listing regulations, any decision regarding dividend recommendations or entitlements cannot be altered before the AGM, and dividends may only be paid from profits of the year or undistributed earnings.
After recording substantial losses in 2023, Global Islami Bank posted another loss of Tk1,308 crore in 2024, driven by a sharp rise in classified loans.
Just three years after its stock market debut and capital raising, the bank announced it would not pay any dividend for 2024. Since its 2022 listing, it had paid shareholders a 5% cash and 5% stock dividend.
Global Islami Bank raised Tk425 crore through its 2022 IPO, approved by the Bangladesh Securities and Exchange Commission (BSEC) in June 2022. Though shares were issued at a face value of Tk10, the current market price has fallen to Tk3.30.
Due to its failure to hold the AGM, the bank’s shares have been placed in the Z category for trading.
