LankaBangla suffers huge loss
LankaBangla Finance posted negative earnings per share in the third quarter of 2018 after suffering huge losses in its operation in the capital market.
The company's consolidated EPS was Tk 0.24 in the negative for the July-September period, down from Tk 0.90 in the same quarter previous year.
The company had to keep a huge amount in the provisioning for the losses, which pushed the EPS to fall, said Khwaja Shahriar, managing director.
The non-bank financial institution had to keep Tk 25.53 crore in provision for diminution in values of share investment in the third quarter, much higher from Tk 25.52 lakh in the same period a year ago.
Price of each share of the company also fell 14.55 percent in the last 10 working days to Tk 22.9 at the Dhaka bourse on October 25.
The company's third quarter report also showed a drastic fall in income from stock investment this year. The investment income also fell 61.49 percent year-on-year to Tk 6.57 crore in the quarter.
The earnings per share will post a good comeback if the stockmarket bounces back to the positive territory again, said Shahriar.
“LankaBangla Finance saw a slight decline in profit due to the liquidity crunch in the money market and the problem has already been solved,” he said.
