Jamuna Bank posted higher profits in 2024 and announced plans to strengthen its capital base through the issuance of a Tk 1,000 crore bond.

The private lender said its profit grew 18 percent year-on-year to Tk 279.59 crore in 2024.

The bank reported consolidated earnings per share of Tk 3.17 for 2024, up from Tk 2.68 a year earlier, according to a disclosure given by the lender to the Dhaka Stock Exchange (DSE) today.

Shares of the bank fell 2.05 percent to Tk 19.10 as of 12.58 pm on the DSE.

Its consolidated net operating cash flow per share (NOCFPS), however, dropped to Tk 14.31, down from Tk 17.68 in 2023.

The board of Jamuna Bank has recommended a 17.5 percent cash dividend for 2024, unchanged from the previous year, and a 6.5 percent stock dividend, lower than the 8.5 percent declared in 2023.

The bank said the retained portion of the recommended stock dividend would be used to strengthen its capital base, which in turn would help expand its business and improve regulatory ratios.

In a separate disclosure to the DSE, Jamuna Bank said its board approved a plan to raise Tk 1,000 crore through the issuance of a subordinated bond through private placement to strengthen its capital base under the Basel III framework, an internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09.

A subordinated bond, also known as subordinated debentures, is a type of bond that is paid back after other bonds if the issuer has financial difficulties.

The issuance of the bond is subject to regulatory approval, said the bank. 

Established in 2001, Jamuna Bank operates 167 branches and 110 sub-branches across Bangladesh, in addition to its growing presence through ATMs, agent banking outlets, and collection booths, as per its website.