• Sunday, Jan 26, 2020
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Operating profits of most banks rise

  • Published at 10:42 pm January 1st, 2019
File photo of people entering in Bangladesh Bank, situated in the Capital Mahmud Hossain Opu/Dhaka Tribune

Although most banks in the country could not finalize their annual accounts on the scheduled day, some finalized themon December 31

The operating profitsof most private and state-run commercial banks in Bangladesh rose between 10% and 30% in 2018, in spite of a number of challenges, including liquidity crisis and interest rate hikes.

The figures, however, are provisional as operating profit is calculated from business operations before deduction of provisioning against default loans and corporate taxes.

Most of the banks typically finalize their annual accounts on December 30 every year. But, as the day was marked for the11th general election, the Bangladesh Bank brought forward the final accounting period to December 27.

Although most banks in the country could not finalize their annual accounts on the scheduled day, some finalized themon December 31.

The Dhaka Tribune obtained data of 23 banks, where 19 posted growth in operating profits. 

In 2018, Sonali Bank Ltd made operating profit of around Tk1,900crore, which was Tk1,020 crore last year. 

“Due to better recovery from the defaulters, we made good profits,” Md Obayed Ullah Al Masud, managing director of Sonali Bank Ltd, told the Dhaka Tribune. He hoped to make more profits in 2019.

For the first time, Southeast Bank Ltd earned a profit of more than Tk1,000 crore. In 2017, it was Tk906 crore. 

Shahjalal Islami Bank Ltd also posted good growth in operating profit, earning around Tk475 crore this year, compared to Tk358 last year.

EXIM Bank Ltd earned operating profit of Tk705 crore. In 2017, the bank's profit was Tk650 crore. 

Mutual Trust Bank Ltd’s operating profit was Tk416 crore in 2017, but now it has made Tk515 crore.

Islami Bank had the highest operating profit at Tk2,770 crore this year. Last year,it was Tk2,420 crore. 

Pubali Banks’ operating profit stood at Tk1,000 crore. In 2017, operating profit of the bank was Tk916 crore. 

“This year, most of the banks earcror better profits because of better recovery from their defaulters.Besides, the banks are now abiding by the rules set by the central bank,” Pubali Bank Managing Director and CEO MA Halim Chowdhury told the Dhaka Tribune. 

The Association of Bankers, Bangladesh Ltd (ABB) Chairman and Dhaka Bank Managing Director Syed Mahbubur Rahman said: “The size of the loans is much higher than before. So, in general profits should increase. Apart from interest, the profit is also good.” 

The new banks earned good operating profits, except Farmers Bank. 

In 2017, Madhumati Bank’s operating profit was Tk146 crore, but this year the bank earned more than Tk200 crore. 

NRB Commercial Bank also posted an increase in their operating profit, around Tk203 crore in 2018,compared toTk200 crore in 2017.