Listed banks reveal mixed Q3 earnings

The latest earnings reports from the listed banks have presented a mixed bag with the majority of them remaining unbowed by the third wave of Covid-19 pandemic.

Twenty-eight out of 32 listed banks have so far filed their third-quarter results (July-September) with the Dhaka Stock Exchange.

Of the banks, fifteen banks posted higher earnings, 11 banks’ earnings went into the red and one bank’s earnings remained unchanged in the third quarter compared to the same period a year earlier.

“The third wave hit the economy in July this year, leaving an impact on the third-quarter earnings of most banks, according to Syed Mahbubur Rahman, former president of Association of Bankers, Bangladesh (ABB).

The government reinforced strict coronavirus restrictions and lockdowns following the surge of Covid-19 cases during the third wave, disrupting the business once again. “So, many banks suffered again,” Rahman, also the managing director of Mutual Trust Bank Limited (MTBL), told The Business Post.

And additional provisions against defaulted loans that grew during the pandemic also ate into the profits of the banks in the quarter, he said. His bank’s earnings-per-share (EPS) fell around 37 per cent in the third quarter of 2021.

Mercantile Bank, Pubali Bank, IFIC Bank, Islami Bank, First Security Islami Bank, Shahjalal Islami Bank, National Bank, Dutch Bangla Bank, Premier Bank, NCC Bank, AB Bank, Eastern Bank, Dhaka Bank, Jamuna Bank and Social Islami Bank witnessed rises in their EPS during the period.

On the other hand, the banks with negative earnings were UCBL, Brac Bank, Uttara Bank, One Bank, NRBC, Southeast Bank, Exim Bank, AL-Arafa Bank, Mutual Trust, City Bank, Rupali Bank and ICB Islamic Bank.

Mercantile Bank was the top bank that logged the highest earnings of about 103 per cent while ICB Islamic Bank, a problematic bank, was the worst bank as its earnings had a freefall of 188 per cent in the third quarter.

However, in the first nine months of this year, only 5 out of 28 banks saw negative earnings. They are National Bank, Exim Bank, Rupali Bank, Mutual Trust Bank and ICB Islamic Bank.

“Overall results were good in nine months as the bank’s income was relatively good before the third wave of Covid-19,” said the former ABB president.