SBAC Bank PLC achieved a remarkable 156 per cent profit growth year-on-year in the third quarter (Q3) of this year, riding on higher investment income from shares and government securities.
The lender reported a profit of Tk 400 million for the July-September quarter, according to a stock exchange filing on Wednesday.
Accordingly, the new generation bank's consolidated earnings per share (EPS) stood at Tk 0.49 for the third quarter this year, up from Tk 0.19 for the same quarter last year.
Following the news, its stock price rose 3.85 per cent to Tk 8.10 on the Dhaka Stock Exchange.
The bank's profit in nine months through September also grew 58 per cent year-on-year to Tk 780 million this year, as against Tk 492 million in the same quarter of the previous year.
As a result, earnings per share increased to Tk 0.95 for January-September period of this year, up from Tk 0.60 in the same period a year earlier.
"The EPS increased compared to the same period of the previous year, driven by higher investment income, lower administrative expenses, reduced tax provisions, and rise in net interest income," said the bank in its earnings note.
Higher gains from shares and the government securities supported the bank's impressive earnings growth in an adverse business climate engendered by inflationary pressure.
The private lender's income from shares and government securities jumped 40 per cent year-on-year to Tk 1.81 billion in nine months through September this year.
The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, dropped to Tk 1.38 for January-September this year, which was Tk 2.63 in the same period a year before.
The net operating cash flow per share declined, compared to the same period last year, primarily due to an increase in loans along with trading securities, said the bank. The consolidated net asset value per share was Tk 14.26 as on September 30, 2024 and Tk 13.50 as on December 31, 2023.
[email protected]
