Midland Bank profit plunges 93% in April-June
Midland Bank has reported a staggering 93% year-on-year decline in its consolidated net profit for the second quarter (April–June) of 2025, largely due to a sharp fall in interest income from its core lending business and a significant rise in loan loss provisions.
According to the bank's unaudited financial statement, its consolidated net profit fell to just Tk1.48 crore in Q2, down from Tk21.13 crore in the same period in 2024. As a result, earnings per share (EPS) fell to Tk0.02, from Tk0.32 a year earlier.
This sharp fall in profit follows a relatively strong first quarter, during which the bank posted a 40% year-on-year growth in consolidated net profit to Tk10.38 crore. That growth was supported by higher returns from investments in government securities, despite the bank facing negative net interest income.
Keep updated, follow The Business Standard's Google news channel
Taking both quarters into account, Midland Bank's consolidated net profit for the first half of 2025 dropped by 58% year-on-year to Tk11.87 crore. EPS for the January-June period fell to Tk0.18, compared to Tk0.43 during the same period last year.
The bank's consolidated net asset value (NAV) per share also declined slightly, reaching Tk14.55 at the end of June, down from Tk14.68 a year ago.
In its financial disclosure, Midland Bank said its core banking income had suffered a blow due to a negative net interest income of Tk40.51 crore in the first half – Tk65 crore lower than the previous year. The decline was driven by a low advance-to-deposit ratio and a faster increase in interest expenses compared to interest income.
On the positive side, income from government securities jumped by Tk103.83 crore thanks to increased yields rates and higher investments volumes, which helped the bank remain profitable overall.
However, specific loan-loss provisions increased by Tk66.82 crore during the period, due to a rise in classified loans. While the bank did not disclose the latest non-performing loan (NPL) figure in its half-yearly report, its audited 2024 financials showed classified loans at Tk239 crore, representing 3.77% of total disbursements.
Despite a 28% drop in profit in 2024, the bank had paid a 3% cash and 3% stock dividend.
On Monday, Midland Bank's share price dropped by 3.41% to close at Tk19.80 on the Dhaka Stock Exchange.
Earlier, in 2023, the Bangladesh Securities and Exchange Commission (BSEC) had allowed Midland Bank to issue 7 crore shares at a face value of Tk10 each to raise Tk70 crore capital from the stock market.
LankaBangla Investments Limited was the issue manager of the bank's IPO.
