Sonali Bank PLC posted Tk 37.27 billion worth of operating profit in 2023 with its deposits and loans and advances showing an uptrend.
The country's largest commercial bank has claimed the EBIT (Earnings Before Interest and Tax) or operating profit would be the highest among all banks in the just out calendar year.
The state-owned bank's operating profit was more than Tk 13.45 billion or 56.47 per cent higher than that of the previous year despite the difficulties faced by the banking sector in the year including dollar dearth, liquidity hardship and loan-related irregularities.
Md. Afzal Karim, Chief Executive Officer and Managing Director of Sonali Bank, shared the bank's financial performance for the year 2023 at a press briefing at the bank's Motijheel headquarters on Monday.
He said the bank registered such a significant rise in its operating profit due to the growth in performing loans, a decrease in non-performing loans (NPLs), an expansion in loans and advances, and increased earnings from various services.
The bank recovered Tk 5.67 billion or 28.57 per cent of the NPLs during the year, according to the bank's data. Mr Karim said the bank recovered NPLs of Tk 2.70 billion from top 20 loan defaulters from the classified loan.
The bank's net interest margin (NIM) increased by over 295.22 per cent or Tk 6.17 billion in 2023 to Tk 8.26 billion in 2023.
The total volume of loans and advances disbursed by the bank reached a milestone, exceeding Tk 1.0 trillion in 2023. This signifies a notable growth of 19.1 per cent, equivalent to an increase of Tk 161.66 billion.
The deposit portfolio in 2023 rose to Tk 1.50 trillion, which is also the highest in the country's banking sector, said Mr Karim.
The overall volume of loans and advances was Tk 846.43 billion in 2022 while the deposit portfolio in 2022 rose to Tk 1.42 trillion, which is also the highest in the country's banking sector.
The advance to deposit ratio (A/D) stands at 66.88 per cent in 2023, which was higher compared to previous years.
The number of loss-making branches of the bank reduced to nine in 2023 from 17 in the previous year, according to the bank's data.
The bank's CEO further explained that in 2007 his bank's capital shortfall was Tk 67.82 billion, but by now it gradually reduced to Tk 44 billion. It will decline further in the future, he added.
sajibur@gmail.com