City Bank profit jumps 37pc in Q2 on investment gains

City Bank posted a 37 per cent year-on-year increase in profit for the second quarter of 2026, driven by strong earnings from investments in government securities and growth in interest income.
The first-generation private commercial bank reported a consolidated profit of Tk 2.85 billion for the April-June quarter, up from Tk 2.09 billion in the corresponding period a year earlier.
The bank has reported consolidated earnings per share (EPS) of Tk 1.63 in the second quarter this year, compared with Tk 1.19 in the same quarter a year earlier, according to a price sensitive information released on Monday.
The strong performance was largely driven by higher income from investments in government securities, alongside income from commission and fees, said the bank in its earnings note.
The lender benefited from investments in government securities, including Treasury bills and bonds, amid sluggish private sector credit growth. The bank's prudent investment strategy generated higher returns and helped strengthen its earnings performance.
The bank also delivered a robust half-yearly performance. Consolidated profit for January-June 2026 surged 75 per cent year-on-year to Tk 5.27 billion, compared with Tk 3.01 billion in the same period of 2025.
The lender's half-yearly consolidated earnings per share (EPS) jumped to Tk 3.01 from Tk 1.72 in the same period last year.
City Bank has always been able to keep operating costs down and mobilize funds at relatively lower costs due to its excellent market reputation, which enabled to make high profit, according to a merchant banker.
The bank's consolidated net operating cash flow per share (NOCFPS) increased significantly to Tk 44.20 in the January-June 2026, from Tk 13.94 in the same period a year earlier, mainly due to higher deposit mobilisation from customers and bank's borrowings compared to the same period last year.
The consolidated net asset value (NAV) per share rose to Tk 37.60 from Tk 35.37, reflecting improved profitability.
On the Dhaka Stock Exchange (DSE), City Bank shares closed at Tk 31.80 on Monday, gaining 1.27 per cent from the previous session.
Annual performance
In 2025, City Bank posted its highest-ever annual profit, buoyed by substantial earnings from investments. The bank posted a consolidated profit of Tk 13.24 billion for the year, marking a 31 per cent increase compared to Tk 10.14 billion in 2024.

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