Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Dutch-Bangla Bank (DBBL) gained a marginal profit growth in the first nine months of 2023, taking advantage of inexpensive cost of funds.
At a time of interest rate hikes, most banks are having to pay higher interest to depositors, but DBBL is able to evade high interest payment to some extent for maintaining a larger network of ATM booths, said a high official of DBBL, wishing not to be named.
DBBL has agent banking and mobile banking. "Clients open accounts [with DBBL] for their own convenience. The bank gets many funds at a low cost or even at zero cost," said the official.
The biggest private commercial bank in Bangladesh reported a profit of Tk 4.14 billion for Jan-Sept, 3.36% higher than for the same period a year ago.
EPS rose to Tk 5.53 for the nine months to September from Tk 5.35 a year ago.
DBBLs net operating cash flow per share fell to Tk 3.85 in Jan-Sept from Tk 20.86 in the same period last year because of, the company said, loan payoff to other banks, financial institutions and agents.
During the same period, the net asset value per share climbed to Tk 59.38 from Tk 53.27 last year.
While DBBL saw a profit escalation, Mercantile Bank and United Commercial Bank could not avoid a year-on-year decline in profit.
Mercantile Bank
The commercial bank suffered a 34% plunge in profit to Tk 2.33 billion in the nine months, compared to the same period of the previous year.
According to the company, its earnings after keeping aside funds for provision dropped year-on-year.
Cash flow and net asset value per share have also gone down.
The company said cash flow was lower than before since the lender had invested heavily in government securities.
United Commercial Bank
It experienced a 9.1 percent decrease in profit in the first nine months of 2023, compared to the year before.
Mr. Jayed Ahmed, senior official of the bank, told the FE that the bank's operating profit had declined by Tk 2.46 billion due to an increase in interest expense on deposits and borrowings.
EPS slid to Tk 1.20 in Jan-Sept this year from Tk 1.32 a year earlier..
UCB's cash flow increased despite a decrease in profit.
According to its earnings disclosure, the net operating cash flow per share rose to Tk 34.72 in the nine months to Sept from Tk 18.42 in the negative in the same period last year.
A higher growth in deposits, compared to loans and advances, resulted in the increase in the net operating cash flow during the period.