Pubali Bank PLC turned a record profit of Tk 6.95 billion in 2023, the highest since its listing on the stock market, riding on higher interest income along with significant earnings from the government securities.

The lender's consolidated profit also surged by 23 per cent, compared to the previous year's profit of Tk 5.65 billion.

Accordingly, its consolidated earnings per share stood at Tk 6.76 for 2023, up from Tk 5.49 in the year before, according to a price sensitive statement published on Thursday.

Based on the impressive profit, the bank's board declared a 25 per cent dividend (12.5 per cent cash and 12.5 per cent stock dividend) for 2023, the highest dividend after 2010 when the bank paid a 35 per cent stock dividend.

"Stock dividend has been recommended to strengthen the capital base of the bank for supporting future business growth and also to improve certain regulatory ratios," said the bank in its earnings note.

In 2022, the bank provided a 12.5 per cent cash dividend.

The bank logged higher profit riding on an increase in net interest income and investment income from the government securities, said an official of the bank, requesting not to be named.

The interest rate spreads have widened after the lending rate cap was lifted in July last year, which enhanced the net interest income of most banks.

The bank has set its priority to continue implementation of its growth strategy with particular emphasis on improving deposit mix, reducing cost of funds, diversifying its loan portfolio and strengthening overall risk management process.

These initiatives have helped the bank improve its business performances, bolster profits and ultimately create value for shareholders, said the official.

To approve the dividend and audited financial statements, the bank will hold an annual general meeting on June 5, with the record date set for May 12.

The net operating cash flow per share, a measure of the bank's ability to generate cash from its operations, stood at negative Tk 2.88 in 2023, up from negative Tk 3 per share in the previous year.

The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 46.33 per share in 2023, up from Tk 41.96 in 2022.

The bank's price earnings (PE) ratio stood at 5.12 as of Thursday, which is much lower than the market average. Currently, the overall market's PE stood at around 12.

Pubali Bank was listed on the stock exchange in 1984. However, the bank's stock price dropped 3.10 per cent to close at Tk 28.1 on Thursday.