Eastern Bank posts record Tk901cr profit in 2025, rewards shareholders with 28% dividend
The board proposed a 25% cash dividend and a 3% stock dividend for the year ending December 2025, a shift from the previous year's distribution of 17.5% cash and 17.5% stock
Eastern Bank PLC (EBL) has reached a significant milestone in its financial journey, posting a record standalone profit after tax of Tk901 crore for the year 2025.
This achievement represents a robust 20% year-on-year growth, underscoring the bank's consistent earnings momentum and a resilient business model that has successfully navigated an increasingly challenging operating environment, according to a press release.
The bank's board of directors, in a meeting held today (15 April), approved the annual audited financial statements and recommended a generous payout for its shareholders.
The board proposed a 25% cash dividend and a 3% stock dividend for the year ending December 2025, a shift from the previous year's distribution of 17.5% cash and 17.5% stock.
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On a consolidated basis, which includes the performance of its subsidiaries, the bank's net profit after tax reached Tk834 crore, marking an even more impressive growth of 26% compared to the previous year.
To finalise these recommendations and review the year's performance, the bank has scheduled its Annual General Meeting (AGM) for 11 June, with 6 May set as the record date for determining shareholder eligibility.
The record-breaking profitability is the culmination of a half-decade of steady growth; EBL's consolidated profit has climbed consistently from Tk480 crore in 2021 to the current Tk834 crore, reflecting a clear trajectory of sustainable value creation.
The bank's strong bottom line was driven by prudent balance sheet management and disciplined risk practices, said the bank in its statement.
Throughout 2025, EBL continued to deliver robust growth across all its key financial indicators. Total deposits rose by 21.6% to reach Tk55,645 crore, while loans and advances increased by 16.1% to settle at Tk47,704 crore by the end of the year.
Perhaps the most striking growth was observed in the bank's investment portfolio, which recorded a significant surge of 47.8%, reaching Tk21,147 crore. This surge highlights the bank's strategic move to optimise its asset allocation in a fluctuating market.
Asset quality remains the strongest pillar of EBL's operational success. While the broader banking industry in Bangladesh has struggled with high levels of defaulted loans – averaging around 30.60% – EBL has managed to bring its non-performing loan (NPL) ratio down to just 2.24%. This figure reflects a level of credit discipline and risk management that is rare in the local market, according to the press release.
Furthermore, the bank maintained full compliance with all regulatory requirements, including BASEL III liquidity standards, ensuring it remained well-capitalised and resilient against potential economic shocks.
This financial stability is reflected in the bank's solo earnings per share (EPS), which rose to Tk5.65 from a restated Tk4.70 in 2024, and its solo net asset value (NAV) per share, which increased to Tk31.86 from Tk27.16.
The bank's profitability indicators also showed sustained strength, with the return on equity (ROE) improving to 19.13% from 18.57% in the previous year. Efficiency remained a priority, as evidenced by a cost-to-income ratio of 40.36%, which is among the lowest in the industry.
To further support future growth and institutional resilience, the bank enhanced its capital base, with the solo capital to risk-weighted assets ratio (CRAR) increasing to 15.49% from 15.11% in the prior year.
As EBL heads into 2026, its record performance reaffirms its position as a market leader, well-equipped to advance its strategic priorities while maintaining a focus on sustainable growth and long-term value for its stakeholders, read the press release.
