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Bank Asia PLC has reported a remarkable 113 per cent year-on-year growth in profit for the first quarter of 2025, driven by substantial income from investments in government securities.
The third generation private commercial bank logged a consolidated profit of Tk 1.66 billion for the January-March period as against nearly Tk 779 million in the same quarter of the previous year.
As a result, the bank's consolidated earnings per share (EPS) stood at Tk 1.42 for January-March 2025 as against Tk 0.67 in the same quarter of 2024, according to its unaudited financial statements published on Thursday.
The bank reaped handsome earnings from investments in government securities alongside high interest income although interest expenses on deposits also went higher.
While interest income grew 4 per cent year-on-year to Tk 7.13 billion in the quarter through March this year, interest payment to depositors and lenders jumped 40 per cent to Tk 7.06 billion.
Hence, its net interest income plunged 96 per cent year-on-year to Tk 72 million in the March quarter.
However, higher gains from the government securities supported the bank's impressive earnings growth in an adverse business climate engendered by inflationary pressure.
The bank's investment in the government securities rose to Tk 200.8 billion as of March this year from Tk 167 billion in December last year.
The bank's income from the government securities climbed 120 per cent year-on-year to Tk 5.74 billion in the January-March this year.
Profits have increased due to higher investment income, which helped cover the decline in net interest income and rising operational expenses, said the bank in its earnings note.
The net operating cash flow per share reached Tk 29.26 in January-March this year, as against Tk 17.44 in the same quarter a year before.
The bank attributed this increase to elevated deposit mobilisation from customers and other banks, while loan portfolio and advances decreased, compared to the same quarter last year.
Bank Asia's deposits grew by 4 per cent while loan and advances dropped 3 per cent in the March quarter.
The net asset value per share also rose to Tk 29.34 as on March this year from Tk 25.85 in March quarter last year due to higher net profit, leading to higher retained earnings and an increase in revaluation reserve.
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