City Bank's operating profit increases by 77% in 9 months
The bank said due to a highly cautious approach toward loan provisioning, City Bank’s consolidated profit after tax increased by 19%, amounting to Tk451 crore in January-September 2024
City Bank reported a consolidated operating profit of Tk1,653 crore in January-September of this year, representing a 77% growth compared to Tk932 crore during the same nine-month period last year.
City Bank held its third-quarter earnings disclosure event on a digital platform today (4 November), announcing its results for the first nine months of 2024.
Investors from around the globe, along with researchers and analysts involved in the capital market, attended the event.
The bank said due to a highly cautious approach toward loan provisioning, City Bank's consolidated profit after tax increased by 19%, amounting to Tk451 crore in January-September 2024, up from Tk379 crore in the same period last year.
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At the end of September, its earnings per share stood at Tk3.35.
The event began with a detailed presentation by Mahbubur Rahman, AMD and CFO of the bank. This was followed by an analysis from Mashrur Arefin, MD and CEO, who expressed his optimism about surpassing Tk2,000 crore in operating profit by year-end.
Discussing the reasons behind the 77% profit growth in operating profit, Mahbubur Rahman said that over the nine months, the bank's deposits increased by Tk10,100 crore while maintaining the cost of deposits at just 4.5%.
He also highlighted significant growth in interest income and income from investments in government securities.
Additionally, he pointed out that the bank's income has grown by 49%, while costs increased by only 8.8%, leading to a commendable reduction in the cost-to-income ratio to 42%, down from 54.5% last year.
Regarding the modest increase in profit after tax, Mashrur Arefin said that management chose to maintain a substantial amount of additional provision on a subjective basis, which may be reassessed at year-end.
Also present at the event were Mesbaul Asif Siddiqui, DMD and chief risk officer, AKM Saif Ullah Kowchar, DMD, and Shah Alam, head of treasury.
City Bank has garnered significant attention from the global investor community in recent years, driven by its notable growth across all business lines and its commitment to embracing digital banking and sustainable financing.
Its shares closed at Tk21.70 on the Dhaka Stock Exchange today.
