FE Desk
Eastern Bank posted a 28 per cent year-on-year growth in consolidated profit in the first quarter of 2026, driven by higher investment income, strong foreign exchange earnings and lower provisioning expenses.
The bank's consolidated profit after tax rose to Tk 199 crore in the January-March quarter of 2026 from Tk 155 crore in the same period a year earlier. Earnings per share increased to Tk 1.24 from Tk 0.97, while net asset value per share climbed to Tk 32.75 from Tk 26.41, according to a press release.
EBL Managing Director Hassan O. Rashid said the bank delivered resilient performance despite a slower credit growth environment.
"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial result for our shareholders," he said.
Net interest income fell to Tk 1.17 billion in Q1 this year from Tk 2.28 billion a year earlier as the bank shifted a larger share of its funds into government securities amid weak private sector credit demand.
Interest expenses rose 16 per cent to Tk 10.73 billion, while interest income from loans increased 3 per cent to Tk 11.90 billion.
However, investment income jumped 24 per cent to Tk 4.78 billion, helping offset pressure on traditional lending income.
Non-funded income, including fees, commissions and foreign exchange earnings, rose 14 per cent to Tk 1.92 billion. Foreign exchange income alone surged 54 per cent to Tk 0.57 billion,
supported by higher trade flows and card business transactions.
EBL's standalone non-performing loan ratio stood at
2.80 per cent at the end of March 2026, almost unchanged from 2.79 per cent a year earlier and below the industry average.
The bank's capital adequacy also remained strong, with the Capital to Risk Weighted Assets Ratio at 16.71 per cent on a standalone basis and 16.09 per cent on a consolidated basis, both above the regulatory minimum requirement of 12.5 per cent.
EBL retained the highest domestic credit ratings - AAA long-term and ST-1 short-term - from CRAB for the third consecutive year. Moody's also reaffirmed the bank's B2 rating in December 2025.
