National Bank incurs Tk1,500cr loss in 2023
The National Bank Limited (NBL) incurred a loss of around Tk1,500 crore in 2023, according to its annual financial report, which was disclosed via the Dhaka Stock Exchange (DSE) yesterday.
In its statement, the bank mentioned that during the year, NBL was unable to book interest on loans and advances due to non-recovery from defaulters.
The bank also saw higher interest expenses on borrowings.
As a result, the year concluded with an operating deficit and significantly impacted the bank's profit margins.
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Last year, NBL reported a consolidated negative earnings per share of Tk4.65, a notable decline from Tk10.13 per share the previous year. In 2022, its consolidated loss was Tk3,260 crore.
At the end of 2023, its accumulative loss stood at Tk2,338 crore.
Meanwhile, the bank did not provide the stock exchange with any information regarding dividends, annual general meetings, or the record date for the last year.
Furthermore, NBL's consolidated net asset value per share declined to Tk7.30 compared to Tk13 in 2022.
The bank's new board and management are exerting maximum efforts to improve the financial health of the bank by streamlining recovery drives and mobilisation of low-cost deposits along with establishment of good corporate governance, said the bank's statement.
Despite these challenges, the share price jumped over 5% to reach Tk5.80 each at the DSE today.
NBL is currently undergoing the process of merging with the United Commercial Bank, according to the Bangladesh Bank. But the NBL's board has decided not to merge with UCB.
