• Sunday, Dec 08, 2019
  • Last Update : 01:22 am

Banks' operating profits soar up to June

  • Published at 09:41 pm July 1st, 2019
Banking
Photo: BIGSTOCK

The figure, however, is provisional as the operating profit is a profit from business operations before deduction of provisioning against loans and corporate taxes

Most of the private banks’ operating profits soar in the first half of this year in spite of various challenges, including liquidity crisis and interest rate hike.

The figure, however, is provisional as the operating profit is a profit from business operations before deduction of provisioning against loans and corporate taxes.

The Dhaka Tribune obtained data of 20 banks’ operating profits; their growth in operating profits were as high as 55%. 

Senior bankers have said the operating profits of banks have increased keeping pace with the country’s growing economy. The amount of loan, advance and deposits in the banking sector are increasing day by day, resulting in higher profits, they add.

However, after the provisioning against loans and corporate taxes, these profits will be  reduced, Pubali Bank managing director and CEO M.A. Halim Chowdhury has said to the Dhaka Tribune. 

According to private banks data, Al Arafah Islami Bank earned a profit of  Tk405crore in the first half of 2019, which was Tk 260 crore in the same period of 2018.

The largest private bank –Islami Bank Bangladesh operating profit stood at Tk1,223crore, up from Tk1, 021crore from a year earlier.

Pubali Bank made a operating profit of Tk540crore as of June, 2019, the banks profit was Tk457 in the same time last year.

DBBL profit stood at Tk510crore,it was Tk418crore in the previous year. 

“Southeast banks’ registered higher operating profits due to increase in foreign trade and loans and advances,” said M Kamal Hossain, managing director of Southeast Bank. 

Their operating profit rose by Tk50crore to Tk505.19crore. 

He said,” We have increased the LCs (letters of credit) limit for our big borrowers. It brought positive result for us, and reflected in the profit of the bank.”

A private bank high official has said  the reason for the rise in operating profits is the acceleration of implementation of mega infrastructural projects. The banks have made a hefty amount of charges and commissions against the guarantees they offered to contractors. 

He said the opening and settlement of letters of credit have registered huge growth in recent months.

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.”