17 banks' profit soar, 10 see decline

The net profit of 17 banks among the 36 banks listed in the country's capital market has jumped during the third quarter of the year i.e. July-September.

In the meantime, the profit of 10 banks went down. However, losses have been incurred by 9 banks which are in extreme crisis.

This information was obtained by reviewing the financial reports of the third quarter of the banks.

Those related to the sector say that after Sheikh Hasina resigned from the post of the prime minister and fled the country on August 5 in the face of the student movement, August-September period witnessed extremely unstable situation. At this time, the image of the banking sector being pushed to the brink of the abyss through the irregularities, corruption and looting of the previous government was also exposed. The customers lost confidence and started leaving the bank. However, the increase in profits of most of the listed banks is a positive message for the banking sector as a whole.

Bankers say that if the customer cannot trust the bank then losses are certain. Bank's business mainly depends on customer's trust. Deposits will increase and banks will do well if customers have confidence—it is natural. If not, that bank will never be able to do good business.

As the reason for the increase in the income of the banks, the sector concerned said that although the country was in turmoil throughout the third quarter, the profits of the banks increased due to investment in government treasury bills and bonds, income from foreign trade and withdrawal of interest rate limits.

Capital market analyst and Chairman of Investment Corporation of Bangladesh (ICB) Professor Abu Ahmed told Views Bangladesh that only those banks that customers have trusted in have been able to make a profit. Others faced losses.

17 banks with profit soar

By reviewing the financial reports of the banks, it can be seen that BRAC Bank has gained the highest profit in the third quarter. The post-tax profit of this bank increased by Tk 429.21 crore. Next is Pubali Bank with Tk111.43 crore profit.

Other banks that saw profit growth include- Shahjalal Islami Bank, United Commercial Bank, NCC Bank, Uttara Bank, One Bank, NRBC Bank, Prime Bank, City Bank, Mercantile Bank, Mutual Trust Bank, Jamuna Bank, SBAC Bank, Rupali Bank, Trust Bank and Standard Bank.

According to the banks' unaudited financial report, BRAC Bank posted a profit after tax of Tk 1010.62 crore against Tk581.41 crore in the same period last year. According to this, the profit of the bank has increased by Tk429.21 crore or 74 percent.

Pubali Bank made a profit after tax of Tk445.87 crore which was Tk334.44 crore in the same period last year. According to this, the profit of the bank has increased by Tk111.43 crore or 33 percent.

NCC Bank posted a profit after tax of Tk201.51 crore in the third quarter of this year, which was Tk96.94 crore in the same period last year. According to this, the profit of the bank has increased by Tk104.56 crore or 108 percent.

Premier Bank's profit increased by Tk65 crore or 15 percent. City Bank posted a profit after tax of Tk201.23 crore, as against Tk142.5 crore in the same period last year. Uttara Bank made a profit after tax of Tk121.81 crore which was Tk75.26 crore in the previous year. One Bank made a profit after tax of Tk56.58 crore in the third quarter of this year. Apart from this, Mercantile Bank made a profit after tax of Tk117.82 crore, which was Tk86.30 crore in the same period of the previous year.

Jamuna Bank posted a profit of Tk105.55 crore in the third quarter of this year, which was Tk76.42 crore in the same period last year. SBAC Bank's profit increased by Tk24.28 crore or 155 percent. UCB Bank posted a profit after tax of Tk98.49 crore, which is Tk22.89 crore or 30 percent higher than the previous year. Shahjalal Islami Bank made a profit after tax of Tk117.54 crore, which was Tk96.24 crore in the same period last year. As a result, the profit of the bank has increased by Tk21.30 crore or 22 percent.

The Mutual Trust Bank posted a profit after tax of Tk90.11 crore, as against Tk82.87 crore in the same period last year. According to this, the profit of the bank has increased by Tk7.23 crore or 9 percent. Trust Bank made a profit after tax of Tk123.4 crore, which was Tk117.89 crore in the same period last year. According to this, the profit of the bank has increased by Tk5.14 crore or 4 percent. Standard Bank posted a profit after tax of Tk18.90 crore, as against Tk16.24 crore in the same period last year. According to this, the profit of the bank has increased by Tk2.66 crore or 16 percent. NRBC Bank made a profit after tax of Tk11.24 crore, which was Tk6.71 crore in the same period of the previous year, meaning the bank has turned from loss to profit. Prime Bank made a net profit of Tk510 crore in the third quarter.

10 banks see profit reduction

According to the financial report, the profit of IFIC Bank, Eastern Bank, AB Bank, Premier Bank, Dhaka Bank, Dutch-Bangla Bank, Midland Bank, Southeast Bank, NRB Bank, Global Islami Bank decreased during the period under discussion.

9 loss-making banks

9 banks had to count losses in the third quarter. The banks are - Islami Bank, Social Islami Bank, Union Bank, First Security Bank, Al-Arafah Bank, Exim Bank, National Bank, ICB Islami Bank and Bank Asia.