AB Bank posts 77% profit growth in January-June

The AB Bank Ltd has posted a staggering 77% year on year growth in its consolidated net profit in the first half of 2021 as deposit expenses decreased and non-funded business increased.

According to the bank's financials, its consolidated net profit rose to Tk25.76 crore in the January-June period this year, which was Tk14.53 crore in the same period of the previous year.

Its earnings per share (EPS) stood at Tk0.31 in the first half of this year, up from Tk0.17.

In the April-June quarter, its consolidated net profit rose by 66% to Tk13.02 crore from Tk7.86 crore in the same period a year ago.

KM Mohiuddin Ahmed, chief financial officer of AB Bank, told The Business Standard, "The profit has increased thanks to a decrease in deposit expenses and growth in non-funded or export-import based business."

On Monday, the company disclosed its half-yearly financial statements on both stock exchanges.

In its disclosure, the bank said its other operating income during the January-June period increased significantly due to a capital gain of Tk5.46 crore from the sale of motor vehicles.

It also said its provision against investment has been reversed to Tk10 crore due to a rise in share price of investment in the capital market.

"Capital gain and reversed provision against investment in the capital market also helps to increase the net profit," said Mohiuddin Ahmed.

"We made provision against the investment, as the stock market is now in an upward trend."

AB Bank is the first private sector bank in the country, which was incorporated in 1981. The bank was listed on the stock exchanges in 1983.

In the last 2020, the bank made a profit of Tk39.40 crore and it had paid a 5% stock dividend to its shareholders.