Dhaka Tribune obtained data of 19 banks’ operating profits, all of them posting growth in operating profits in the year
Operating profit of most of the private and state-run commercial banks increased ranging between 5% and 20% in 2019 despite a number of challenges, including decline in credit growth and high amount of defaulted loans.
The figure, however, is provisional as operating profit is estimated without deduction of provisioning against loans and corporate taxes.
Dhaka Tribune obtained data of 19 banks’ operating profits, all of them posting growth in operating profits in the year.
Pubali Bank made operating profit of around Tk1,050 crore. In 2018, the operating profit of the bank was Tk1,010 crore.
Talking to Dhaka Tribune, Pubali Bank Managing Director MA Halim Chowdhury said all of its departments performed well.
City Bank reported a 21% jump in operating profit to Tk825 crore as it concentrated on mobilizing low-cost deposits and expanding its trade finance business.
“We have also recovered a significant amount of default loans during the period,” said its Managing Director Mashrur Arefin.
In 2019, Southeast Bank earned a profit of more than Tk1,050 crore. In 2018, the bank’s operating profit was Tk1,000 crore.
Shahjalal Islami Bank also has good growth in operating profits. The bank earned operating profit of around Tk653 crore.
In 2018, the operating profit of the bank was Tk475 crore.
EXIM Bank earned a profit of Tk780 crore in 2019 while in 2018 it was Tk705 crore.
World Bank Bangladesh former lead economist Zahid Hussain said it was surprising that the operating profit rose despite the decline in private credit and export-import growth.
Private sector credit growth dropped to a nine-year low to 10.04% in October, he said citing the central bank data.
A number of private banks managed funds with the low cost deposits which might have pushed up their profit, he noted.