Global Islami Bank posts Tk 9.39b loss in April-June quarter

Shariah-based Global Islami Bank suffered a massive loss of Tk 9.39 billion in the April-June quarter this year, a stark reversal from the Tk 170 million profit posted in the same period last year, as a significant portion of its assets turned non-performing.

In a stock exchange filing on Wednesday, the bank also disclosed a negative net asset value and worsening cash position. Quarterly losses amounted to Tk 9.06 per share, compared to earnings of Tk 0.16 per share a year earlier.

Global Islami Bank was previously owned by S Alam Group, a major player in large-scale banking scams. The bank's financial statements had been inflated in earlier years, and it was in trouble from the outset of its listing.

Losses began just one year after going public: in 2022, it reported a Tk 0.96 billion profit, but in 2023 it posted a loss of Tk 21.52 billion.

After the country's political changeover last year, disclosures became more transparent, revealing a surge in bad loans and a sharp rise in the non-performing loan (NPL) ratio, further deepening losses.

For the six-month (January-June) period of 2025, losses reached Tk 17.17 billion, compared to a Tk 1.01 billion profit in the same period of 2024. According to the company, the downturn was driven by a Tk 5.63 billion operating loss and a Tk 10.73 billion provision charge.

The bank's net asset value has turned negative, with NAV per share at a negative Tk 38.33 as of June 30, 2025, as against Tk 14.40 a year earlier -- a drop of Tk 52.73 per share, attributed to substantial provisioning.

Cash flow also slipped into negative territory, with net operating cash flow per share (NOCFPS) at a negative Tk 9.08 in January-June 2025, compared to Tk 1.30 in the same period of 2024. The decline was due to lower investment income receipts and higher interest paid on deposits.

Meanwhile, the bank's share price on the Dhaka Stock Exchange dropped 3.45 per cent to Tk 2.80 on Wednesday.

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