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Most banks report higher EPS in January-September period

  • Published at 10:12 pm October 31st, 2019
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According to the Dhaka Stock Exchange (DSE) data until on Thursday, 29 out of 30 listed banks have disclosed their financial statements, where 22  banks have seen higher EPS while seven banks witnessed negative income growth during the period

Most of the listed banks have reported higher earnings per share (EPS) in the first nine months (January-September’19) of the current year compared to the same period last year.

According to the Dhaka Stock Exchange (DSE) data until on Thursday, 29 out of 30 listed banks have disclosed their financial statements, where 22  banks have seen higher EPS while seven banks witnessed negative income growth during the period.

Talking to Dhaka Tribune, bankers and experts have said most of the listed banks’ earnings are healthier because of better recovery of their defaulted loans. Besides, the banks are now more compliant than before as they are abiding by all directives of Bangladesh Bank.

Banks’ EPS rose during the period due to increase in their operating profits and decrease in required provision against their stressed loans, they add.

A managing director of a stock brokerage house has told Dhaka Tribune that the rise in the profitability of the banking sector bears good news for the stock investors. The enhanced profitability of banks will have a positive impact in the stock market, he adds.

As per the unaudited financial statement, Exim Bank registered the highest income growth by 300% in the 3rd quarter and its EPS stood at Tk0.44, which was Tk0.11 in the same period a year ago.

Exim Bank Managing Director and CEO Mohammed Haider Ali Miah told Dhaka Tribune: “Earnings increased mainly due to increase in the operating income. The default loan has decreased with the capacity strengthening of recovery team.”

The EPS of IFIC Bank soared 168% to Tk1.45 in January-September period against Tk0.54 in the same period last year. First Security Islami Bank's EPS rose 145% to Tk1.30, up from Tk0.53. Trust Bank’s EPS  also jumped by 66% to Tk2.70 from previous Tk1.63

According to DSE data, the EPS of Pubali Bank, Prime Bank, Dhaka Bank, City Bank, Jamuna Bank, Dutch-Bangla Bank, Eastern Bank, Islami Bank, Mercantile Bank, Mutual Trust Bank, Shahjalal Islami Bank, Southeast Bank, NCC Bank, Standard Bank, UCB, Uttara Bank, Premier Bank and Bank Asia Limited also rose in the first nine months of the year compared to the same period last year.

The EPS is the company's profit allocated to each share of a listed firm, indicating a company's profitability. However, analysts have said the unaudited EPS of a company often does not reflect actual financial health of a listed firm, but indicates profitability that influences investors towards their long-term investment plans.

On the contrary, the EPS of One Bank, AB Bank, Rupali Bank, Brack Bank, SIBL and ICB Islamic Bank registered negative growth during the period.

From January to September, One Bank’s EPS hit Tk0.68, down from Tk0.71 in the same period of last year. AB Bank’s EPS declined to Tk 0.19 against Tk0.41 last time. ICB Islamic Bank EPS was -Tk0.49 against -Tk0.54.

Rupali Bank’s EPS plummeted to Tk0.40 for the first nine months of this year as against Tk0.46 for the same period last year.