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July 17, 2025 | 3 months ago

BDL shares: A return of over 5.5%

5.55% after tax... This is the return on shares in the Local Development Bank (BDL) for investors who subscribed to the public offering launched by this major national banking institution at the beginning of this year as part of a capital increase on the stock market decided by the state, which owns the bank.

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Issued last January at an IPO price of 1,400 dinars, i.e. at a 10% discount to its real value, estimated at 1,546 dinars, the BDL share, whose stock market price was 1,372 dinars yesterday, thus offers a first annual dividend of 77.77 dinars, less than five months after its admission to stock market listing, according to an official press release from the bank. "The ordinary general meeting of BDL shareholders, held on June 29, 2025 and ruling on the company's financial statements, has decided to distribute 50% of the overall profit for the 2024 financial year, i.e. an amount of 11,464,348,898.12 DA to be distributed among shareholders, out of a total profit of 22,920,697,796.24 DA," the same press release states. According to the bank, new holders of BDL shares were able to access their first annual dividends yesterday via their bank accounts, where they had initially subscribed to their shares. As a reminder, the Banque de développement local is the second major public banking institution, after Crédit populaire d'Algérie (CPA), to have opened up its share capital via the Algiers Stock Exchange, following a decision by the country's highest authorities, as part of a vast reform program aimed at modernizing the national banking and financial system. Between January 20 and February 20, BDL launched a public offering of more than 44 million new shares, corresponding to a total of 30% of its share capital. This fund-raising operation via the Algiers stock market enabled the bank to increase its share capital by raising a total of 61.88 billion dinars from the general public, making it the second largest fund-raiser on the Algiers stock market after CPA, which had raised over 112 billion dinars a year earlier by opening up its share capital to private investors. BDL, it should also be recalled, had succeeded in placing all of its new shares offered for sale, 80% of which were subscribed by individuals, i.e. by a large public of private individuals. The funds thus raised are intended to enable the bank to strengthen its financial base and broaden its financing capabilities in favour of investment and the national economy, in line with the objectives initially set by the bank. At the close of the 2024 financial year, the bank posted total sales of around 94.8 billion dinars, up 23.5% on the 2023 figure (76.7 billion dinars), according to its latest management report and financial statements, which also show a positive trend in net banking income, which "increased profitably by 29%, representing growth of 15 billion dinars, from 52.4 billion dinars in 2023 to 67.7 billion dinars in 2024". The bank also closed the year with net income of 22.9 billion dinars, up 5.4 billion dinars from the previous year, representing 31% growth. These favourable results increase in 2025 and beyond, according to the bank's development plan and outlook.

July 17, 2025 | algeria-logo