Sonali Bank's H1 profit jumps 193% to Tk1,878cr on treasury gains, lower provisions

Sonali Bank PLC, the country's largest state-owned lender, reported a massive 193% year-on-year surge in consolidated net profit to Tk1,878 crore for the first half of 2026, marking the highest net earnings recorded by any local bank during the six months.

According to the bank's financial statements released recently, consolidated earnings per share (EPS) jumped to Tk41.47 in H1 2026, up significantly from Tk14.14 in the corresponding period last year.

According to bank sources, with this performance, the lender outperformed leading private commercial lenders, including BRAC Bank, which posted a net profit of Tk1,423 crore during the January-June period. 

Financial data shows that Sonali Bank's net interest income fell 26% year-on-year to Tk424.88 crore during the first half, primarily impacted by elevated borrowing costs.

However, the state-owned bank offset the interest income decline through robust treasury operations, securing Tk4,824 crore in investment income — a 9% growth compared to the same period of 2025.

Despite strong treasury performance, rising administrative expenses dragged the bank's operating profit — consolidated profit before tax and provision — down by 6% to Tk3,546 crore. 

The triple-digit jump in final net profit was largely enabled by a steep reduction in provision requirements against non-performing loans.

During the first half, Sonali Bank set aside Tk1,113 crore in provisions, which was 59% lower than the provision maintained in the same period last year.

During H1 2026, its total classified loans stood at 18.27% of its total disbursement, which was 15.78% at the end of 2025, according to Bangladesh Bank data.

At the end of June 2026, Sonali Bank's consolidated net asset value (NAV) per share stood at Tk332.03.