EBL's business acumen achieves one of lowest NPL ratios

Eastern Bank's non-performing loans stood at just 3.07 per cent at the end of September this year, far below the industry average of over 27 per cent as of June.
"Strong focus on asset quality has driven the bank to achieve low non-performing loans," the bank said in a statement on Thursday.
The bank also maintained an excess provision of Tk 1.44 billion in addition to the classified loans (CL) requirement, strengthening its shock-absorbing capacity under stressed scenarios.
Accordingly, the bank's net profit after tax (solo) for the first nine months stood at Tk 6.27 billion, a 20 per cent growth compared to the same period last year, while consolidated profit grew more than 26 per cent year-on-year.
"Our focus has always been to conduct businesses prudently within the regulatory framework," said Ali Reza Iftekhar, managing director of Eastern Bank.
The bank's cost-to-income ratio, a measure of operating efficiency, remained low at 41.17 per cent compared to the previous year.
Its intrinsic and relative financial strength largely reflects its solvency, indicated by its risk relative to its loss-absorbing capacity, and its liquidity.
Key liquidity ratios of the bank also showed growth above regulatory requirements.
The bank maintained an excess cash reserve ratio (CRR) of Tk 5.38 billion and an excess statutory liquidity ratio (SLR) of Tk 85.15 billion against regulatory requirements, demonstrating its strong liquidity position.
Eastern Bank followed a cautious business growth strategy, focusing on investments in government securities, where credit risk and provision requirements are zero.
The bank's total assets increased by Tk 93.68 billion, including a Tk 45.05 billion rise in investment in government securities and a Tk 37.90 billion increase in loans and advances. This prudent business growth strategy has generated positive returns for shareholders.

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