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Most listed banks see EPS surge in Q1

Prime Bank's EPS jumps 191pc in Jan-Mar


BABUL BARMAN | May 18, 2021 00:00:00


Most of the listed banks logged higher profits in the first quarter (Q1) of 2021 compared to the same quarter of the previous year due to relaxed provisioning amid ongoing pandemic.

Of the 31 banks listed with the Dhaka Stock Exchange (DSE), 21 have disclosed their earnings per share (EPS) for January-March, 2021 quarter as of Monday.

According to the un-audited financial statements, consolidated EPS of 15 banks surged, five saw their EPS declined while one continued to incur loss, according to statistics available with the DSE.

EPS is the portion of a company's profit that is allocated to every individual stock. In short, it serves as an indicator of a company's profitability.

As per the un-audited financial statements, Prime Bank registered the highest EPS surged by 191 per cent to Tk 1.34 for January-March, 2021. Its EPS was Tk 0.46 in the same quarter of the previous year.

The EPS of AB Bank also jumped 100 per cent to Tk 0.16 for January-March, 2021 which was Tk 0.08 in the same quarter a year ago.

The Brac Bank's EPS soared 41 per cent to Tk 0.93 for January-March, 2021, which was Tk 0.66 in the January-March, 2020.

The City Bank's EPS also rose 31 per cent to Tk 0.98 in the first quarter of 2021, which was Tk 0.75 in the same quarter in the previous year.

The EPS of Southeast Bank rose 27 per cent to Tk 1.22 for January-March, 2021, as against Tk 0.96 in the same quarter of the previous year.

The EPS of Eastern Bank soared 24 per cent to Tk 1.28 for January-March, 2021, which was Tk 1.03 in January-March, 2020.

The Mercantile Bank's EPS jumped 16 per cent to Tk 0.64 for January-March, 2021 which was Tk 0.55 in the same quarter of the previous year.

The EPS of Pubali Bank rose 14 per cent to Tk 0.98 for January-March, 2021, as against Tk 0.86 in the same quarter of 2020.

Jamuna Bank's EPS jumped nearly 13 per cent to Tk 1.60 for January-March, 2021 which was Tk 1.42 in the same quarter of the previous year.

The EPS of Mutual Trust Bank rose 12.50 per cent to Tk 0.81 for January-March, 2021, was against Tk 0.72 in January-March, 2020.

The EPS of Premier Bank, Shahjalal Islami Bank, ONE Bank, Islami Bank Bangladesh and IFIC Bank also rose between 9.10 per cent and 4.54 per cent in January-March, 2021.

On the other hands, Standard Bank saw the highest EPS fall by nearly 53 per cent to Tk 0.17 in January-March, 2021, closely followed by First Security Islami Bank which EPS fell by 52 per cent to Tk 0.32 for January-March, 2021.

The EPS of Uttara Bank, NCC Bank and Bank Asia also dropped by 37 per cent, 33 per cent and 9.50 per cent respectively.

ICB Islamic Bank continued to incur losses. The bank incurred a loss of Tk 0.15 per share in January-March, 2021, as against loss of Tk 0.09 per share in the same quarter in the previous year.

Most listed banks posted higher EPS due to increase operating profit while non-performing loans are now under control because of the policy support on provisioning from the central bank, said a managing director of a private commercial bank, preferring anonymity.

"The stock market was also vibrant this year so many banks did not need to keep provision. This ultimately boosted the profits of the banks," he said.

"EPS increased due to non-requirements of provision for diminution in value of investment in shares".

Analysts, however, said the un-audited EPS of a company often does not reflect actual financial health of a firm, but indicates profitability that influences investors towards their long-term investment.

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