Most of the listed banks logged higher profits year-on-year in the first half (H1) for January-June, 2021 due to higher operating income, lower provisioning and bullish capital market.
Of the 31 banks listed on the Dhaka Stock Exchange (DSE), 27 have disclosed their un-audited financial statements for January-June, 2021 as of Sunday.
Of them, the consolidated earnings per share (EPS) of 23 banks (85 per cent) surged, three saw their EPS fell marginally while one continued to incur loss, according to available data 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.
Most banks posted higher EPS due to increase operating profit while non-performing loans were 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 bullish during the period 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 often does not reflect actual financial health of a firm, but indicates profitability that influences investors towards their long-term investment.
Standard Bank registered the highest EPS surged by 283 per cent to Tk 0.23 for January-June 2021. Its EPS was Tk 0.06 in the same period a year earlier.
The EPS of Prime Bank also rose to Tk 1.81 for January-June, 2021, up by a whopping 229 per cent, from Tk 0.55 in the corresponding period.
Newly listed NRB Commercial Bank's EPS soared 126 per cent to Tk 1.11 for January-June, 2021. Its EPS was Tk 0.49 in January-June, 2020.
BRAC Bank's EPS jumped 120 per cent to Tk 1.85 for January-June, 2021, which was Tk 0.84 in the same period of the previous year.
Mercantile Bank's EPS for six months that ended on June 30, 2021, also rose 108 per cent to Tk 2.02 as against Tk 0.97 for the same period of the previous year.
The City Bank's EPS surged 106 per cent to Tk 2.06 for January-June, 2021. Its EPS was Tk 1.0 in January-June, 2020.
AB Bank's EPS soared 82 per cent to Tk 0.31 in the first half of the year 2021, which was Tk 0.17 in the same period a year ago.
The EPS of IFIC Bank rose 78 per cent to Tk 0.91 for January-June, 2021 as against Tk 0.51 in the same period of the previous year.
The Premier Bank's EPS jumped 75 per cent to Tk 1.58 for January-June, 2021 as against Tk 0.90 in the same period of the previous year.
The EPS of Shahjalal Islami Bank stood at Tk 1.72 for January-June, 2021, rising 72 per cent, from Tk 1.00 in January-June, 2020.
Southeast Bank's EPS rose 61 per cent to Tk 2.56 for January-June, 2021 which was Tk 1.59 (Restarted) in the same period of the previous year.
ONE Bank's EPS also rose 57 per cent to Tk 1.46 for January-June, 2021, as against Tk 0.93 in January-June, 2020.
The EPS of Eastern Bank soared 55 per cent to Tk 2.56, UCB EPS increased 42 per cent to Tk 1.02 and Bank Asia EPS rose 28 per cent to Tk 1.75 for January-June, 2021.
Jamuna Bank, Islami Bank Bangladesh, NCC Bank, Pubali Bank, Social Islami Bank and Trust Bank's EPS also rose between 4.40 per cent and 27 per cent in January-June, 2021.
On the other hands, First Security Islami Bank saw the highest EPS fall by 34 per cent to Tk 0.54 in January-June, 2021, followed by Mutual Trust Bank which EPS fell by 19 per cent to Tk 1.08 for January-June, 2021. The EPS of Exim Bank also fell by 11 per cent to Tk 0.89 in the January-June, 2021.
ICB Islamic Bank continued to incur losses. The bank incurred a loss of Tk 0.32 per share in January-June, 2021. The bank's per share loss was also Tk 0.32 in the same period last year.