The profit earned by a number of listed banks was higher in the third quarter (July-September) of the current calendar year compared to that fetched during the corresponding period of last year. Â
Bankers attribute the positive development to political stability and declining cost of funds.
Among 30 listed banks, so far 11 have published their Q3 un-audited financial statements as of Monday. And among the 11, consolidated net profit and earning per share (EPS) of nine banks increased over the same in the corresponding period of 2013.
Anis A Khan, managing director of Mutual Trust Bank, said banks' profits are on the rise as utilisation of funds has increased amid favorable situation.
"Presently, almost everything is in favor of the banks. Cost of funds has declined following reduction of deposit rates and this has helped banks to boost their profit earning," Mr. Khan told the FE.
In the un-audited accounts for the 3rd quarter of 2014, the Mutual Trust Bank (MTB) has reported a consolidated after-tax profit of Tk 195.83 million and consolidated EPS at Tk 0.64 as against Tk 143.96 million and Tk 0.47 respectively for the same period of 2013.
The bank's consolidated profit after tax was Tk 565.34 million and consolidated EPS of Tk 1.84 for the period between January and September 2014. For the same period of 2013, the MTB's consolidated post-tax profit was Tk 107.73 million with EPS Tk 0.35.
For Q3 of 2014, Social Islami Bank Limited (SIBL) reported a consolidated net profit at Tk 105.25 million with consolidated EPS of Tk 0.15 as against Tk 97.26 million and Tk 0.14 respectively for the same period of 2013.
The company's consolidated net profit was Tk 722.13 million with consolidated EPS of Tk 1.03 during the first of nine months of 2014 as against Tk 338.22 million and Tk 0.48 respectively for the same period of the previous year.
The IFIC Bank has reported consolidated net profit of Tk 468.03 million with consolidated EPS of Tk 1.07 in Q3 of 2014 as against Tk 496.15 million and Tk 1.13 respectively during the corresponding period of 2013.
The company's net profit was above Tk 1.11 billion with a consolidated EPS of Tk 2.54 for the January-September period of 2014 as against Tk 946.38 million and Tk. 2.16 respectively for the same period of 2013.
Net profit of Rupali Bank, a state-owned commercial bank, stood at Tk 84.46 million with consolidated EPS of Tk 0.40 in Q3 of 2014 as against the corresponding profit of Tk 56.35 million and EPS of Tk 0.27 respectively.
In the first nine months of 2014, the company's net profit stood at Tk 320.22 million with consolidated EPS at Tk 1.53 against Tk 802.19 million and Tk 3.84 respectively for the same period of the previous year.
According to Q3 report, Islami Bank netted a consolidated net profit (excluding non-controlling interests) of Tk 297.84 million with consolidated EPS of Tk 0.18. The company's profit and EPS were Tk 32.19 million and Tk 0.02 respectively for the same period of 2013.
United Commercial Bank Limited (UCBL) has reported consolidated net profit of Tk 430.19 million with consolidated EPS of Tk 0.51 for Q3 of 2014 against Tk 468.32 million and Tk 0.56 respectively for the same period of 2013.
In Q3, Al-Arafah Islami Bank's consolidated net profit declined to Tk 226.86 million with consolidated EPS of Tk 0.24 against Tk 625.63 million and Tk 0.66 respectively for the same period of 2013.
Consolidated net profit reported by Shahjalal Islami stood at Tk 858.91 million with consolidated EPS of Tk 1.17 in the Q3 of 2014 as against Tk 628.69 million and Tk 0.86 respectively for the same period of 2013.
Net profit of EXIM Bank stood at Tk 345.42 million with consolidated EPS of Tk 0.27 in Q3 of 2014 as against Tk 333.50 million and Tk 0.26 respectively reported in same period of the previous year.
EXIM Bank reported its consolidated net profit of Tk 744.90 million with consolidated EPS of Tk 1.01 during first 9 months of 2014 as against Tk 536.13 million and Tk 0.73 respectively for the same period of 2013.
ONE Bank's consolidated net profit stood at Tk 295.75 million with consolidated EPS of Tk 0.56 in the Q# of 2014 as against Tk 133.25 million and Tk. 0.25 respectively for the same period of 2013.
Former adviser of a caretaker government Dr. AB Mirza Azizul Islam, however, said credit growth in the banking sector has not been satisfactory in recent months.
"Increase in profit despite unsatisfactory level of credit growth does indicate to the presence of higher spread," Dr. Islam said.
He was sceptical whether sufficient money has been kept for provisioning the banks' classified loans.
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