PCBs' half-yearly operating profit up by 50 per cent
FE Report | Monday, 7 July 2008
The operating profit of the country's private commercial banks (PCBs) shot up by around Tk 10.55 billion (1,055 crore) in the first six months of this calendar year, recording nearly a 50 per cent growth over that of the corresponding period of the previous year.
A total of 27 PCBs earned Tk 32.04 billion as operating profit during the January-June period of the calendar year 2008 as against Tk 21.49 billion of the corresponding period of the previous year, sources in the banking sector said, adding that profit figures of two banks have not been included here.
However, the operating profit does not indicate the actual financial position of a bank. Because, the banks have to leave aside funds for provisioning against bad debts and taxes paid to the government from operating profits.
Sources said at least two PCBs, out of 27, registered low operating profits in the period mainly due to lower business.
'The business of PCBs has increased during the period mainly due to higher credit growth that has helped them make hefty profits,' an executive of a PCB told the FE.
The Islami Bank Bangladesh Limited held the top position as usual among the PCBs, earning Tk 3.84 billion as operating profit during the six months period against Tk 2.62 billion of the corresponding period of the previous year.
The National Bank Limited held the second position, earning an operating profit of Tk 2.03 billion against Tk 1.26 billion.
The Prime Bank Limited, however, obtained the third position earning Tk 1.93 billion as operating profit against Tk 1.55 billion.
Most of the third generation banks, which started operation in the late 1990s, performed well in terms of operating profit, the provisional data indicated.
The BRAC Bank Limited earned Tk 1.86 billion as operating profit against Tk 650 million.
The operating profit of the Pubali Bank Ltd. has gone up to Tk 1.82 billion from Tk 1.46 billion.
IFIC Bank and Dutch-Bangla Bank Limited earned Tk 1.10 billion each as operating profit against Tk 520 million and Tk 680 million respectively.
The Southeast Bank has earned an operating profit worth Tk 1.60 billion in the period against Tk 1.31 billion.
The Uttara Bank Ltd. earned Tk 1.20 billion against Tk 750 million, National Commerce and Credit Bank Ltd. (NCCBL) Tk 1.06 billion against Tk 692 million, AB Bank Ltd. Tk 1.56 billion against Tk 1.38 billion, the United Commercial Bank Limited (UCBL) Tk 1.56 billion against Tk 950 million.
During the period, the Al-Arafah Islami Bank Ltd earned Tk 800 million against Tk 283 million and the Social Investment Bank Ltd. earned Tk 700 million against Tk 250 million.
The operating profit of the Mercantile Bank Ltd. was Tk 860 million during the period against Tk 730 million, Dhaka Bank Ltd. earned Tk 1.29 billion against Tk 845 million, Bank Asia Ltd. earned Tk 900 million against Tk 700 million, EXIM Bank Ltd. earned Tk 1.30 billion against Tk 790 million.
The Shahjalal Islami Bank Ltd. earned Tk 825 million compared to Tk 486 million, the Premier Bank Ltd. earned Tk 680 million against Tk 470 million.
The operating profit of Standard Bank Ltd. reached Tk 680 million from Tk 390 million and that of Trust Bank Ltd. rose to Tk 670 million from Tk 350 million, the Mutual Trust Bank Ltd. earned Tk 550 million against Tk 460 million.
Basic Bank's operating profit rose to Tk 700 million from Tk 605 million and Jamuna Bank's operating profit increased to Tk 460 million from only Tk 280 million.
On the other hand, the City Bank Ltd. saw a slight fall in its operating profit which fell to Tk 600 million from Tk 700 million while that of One Bank Ltd. fell to Tk 400 million from Tk 448 million.
A total of 27 PCBs earned Tk 32.04 billion as operating profit during the January-June period of the calendar year 2008 as against Tk 21.49 billion of the corresponding period of the previous year, sources in the banking sector said, adding that profit figures of two banks have not been included here.
However, the operating profit does not indicate the actual financial position of a bank. Because, the banks have to leave aside funds for provisioning against bad debts and taxes paid to the government from operating profits.
Sources said at least two PCBs, out of 27, registered low operating profits in the period mainly due to lower business.
'The business of PCBs has increased during the period mainly due to higher credit growth that has helped them make hefty profits,' an executive of a PCB told the FE.
The Islami Bank Bangladesh Limited held the top position as usual among the PCBs, earning Tk 3.84 billion as operating profit during the six months period against Tk 2.62 billion of the corresponding period of the previous year.
The National Bank Limited held the second position, earning an operating profit of Tk 2.03 billion against Tk 1.26 billion.
The Prime Bank Limited, however, obtained the third position earning Tk 1.93 billion as operating profit against Tk 1.55 billion.
Most of the third generation banks, which started operation in the late 1990s, performed well in terms of operating profit, the provisional data indicated.
The BRAC Bank Limited earned Tk 1.86 billion as operating profit against Tk 650 million.
The operating profit of the Pubali Bank Ltd. has gone up to Tk 1.82 billion from Tk 1.46 billion.
IFIC Bank and Dutch-Bangla Bank Limited earned Tk 1.10 billion each as operating profit against Tk 520 million and Tk 680 million respectively.
The Southeast Bank has earned an operating profit worth Tk 1.60 billion in the period against Tk 1.31 billion.
The Uttara Bank Ltd. earned Tk 1.20 billion against Tk 750 million, National Commerce and Credit Bank Ltd. (NCCBL) Tk 1.06 billion against Tk 692 million, AB Bank Ltd. Tk 1.56 billion against Tk 1.38 billion, the United Commercial Bank Limited (UCBL) Tk 1.56 billion against Tk 950 million.
During the period, the Al-Arafah Islami Bank Ltd earned Tk 800 million against Tk 283 million and the Social Investment Bank Ltd. earned Tk 700 million against Tk 250 million.
The operating profit of the Mercantile Bank Ltd. was Tk 860 million during the period against Tk 730 million, Dhaka Bank Ltd. earned Tk 1.29 billion against Tk 845 million, Bank Asia Ltd. earned Tk 900 million against Tk 700 million, EXIM Bank Ltd. earned Tk 1.30 billion against Tk 790 million.
The Shahjalal Islami Bank Ltd. earned Tk 825 million compared to Tk 486 million, the Premier Bank Ltd. earned Tk 680 million against Tk 470 million.
The operating profit of Standard Bank Ltd. reached Tk 680 million from Tk 390 million and that of Trust Bank Ltd. rose to Tk 670 million from Tk 350 million, the Mutual Trust Bank Ltd. earned Tk 550 million against Tk 460 million.
Basic Bank's operating profit rose to Tk 700 million from Tk 605 million and Jamuna Bank's operating profit increased to Tk 460 million from only Tk 280 million.
On the other hand, the City Bank Ltd. saw a slight fall in its operating profit which fell to Tk 600 million from Tk 700 million while that of One Bank Ltd. fell to Tk 400 million from Tk 448 million.