Southeast Bank's profit surges 64pc in H1 on higher investment income, lower provisioning

Southeast Bank's half-yearly profit surged nearly 64 per cent year-on-year to Tk 2.19 billion during January-June 2026, supported by strong investment income and reduced provisioning against loans.
The second-generation commercial bank reported consolidated earnings per share (EPS) of Tk 1.64 for the first half of the year, compared with Tk 1.00 in the same period a year earlier, according to a price sensitive information disclosed on Tuesday.
The bank said the rise in earnings per share (EPS) was driven by increased investment income and lower loan provisioning compared with the same period a year earlier.
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's net operating cash flow per share (NOCFPS) increased significantly to Tk 39.39 in January-June 2026, from Tk 2.39 a year earlier, mainly due to higher borrowings and deposits from banks and customers.
The net asset value (NAV) per share rose to Tk 27.16 from Tk 24.33, reflecting improved profitability.
The bank's second-quarter profit also increased by around 10 per cent year-on-year to Tk 86.98 million during April-June 2026.
At the Dhaka Stock Exchange (DSE), Southeast Bank shares closed at Tk 10.90 on Tuesday, gaining 5.83 per cent from the previous session.
The bank's annual profit for 2025 jumped 7.7 times year-on-year to Tk 3.35 billion, compared with Tk 433 million in 2024, mainly due to lower provisioning requirements.
Based on the improved earnings, the bank's board had declared a 3 per cent cash dividend and a 7 per cent stock dividend for 2025. The stock dividend was declared to comply with the regulatory requirements and to support the lender's business growth.

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