Most banks' EPS up in Jan-Mar

The consolidated earnings per share (EPS) of most of the listed banks rose in the first quarter (Q1) for January-March, 2019 of this year compared to that of the same quarter last year.

EPS is the portion of a company's profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company's profitability.

Market analysts, however, said the banking sector remained volatile with ongoing liquidity crisis, soaring interest rate coupled with huge non-performing loans which may affect the banks' profitability at the end of the year.

All 30 banks listed with the Dhaka Stock Exchange (DSE) disclosed their un-audited consolidated EPS for January-March, 2019 quarter.

Of them, 21 banks' consolidated EPS rose in the January-March, 2019 quarter while nine banks saw their EPS fall, according to the un-audited financial statements.

The Uttara Bank posted the highest EPS increase-141 per cent-- to Tk 0.94 for January-March, 2019 quarter which was Tk 0.39 in the same quarter in the previous year, according to data available with the DSE.

The EPS of City Bank also saw 107 per cent rise to Tk 0.79 for January-March, 2019 which was Tk 0.38 in the same quarter in the previous year.

However, consolidated net operating cash flow per share (NOCFPS) of the bank was negative Tk 11.56 for January-March 2019 as against negative Tk 0.32 for January-March 2018.

The bank noted that during January 1, 2019 to March 31, 2019, growth in deposits and borrowings was lower than growth in advance, which ultimately affected operating cash flows negatively.

The consolidated EPS of Eastern Bank also rose 69 per cent to Tk 1.17 for January-March, 2019, which was Tk 0.69 in January-March period of 2018.

Jamuna Bank's EPS also saw 64 per cent rise to Tk 0.74 for January-March, 2019 quarter compared to the same quarter a year ago.

The EPS of First Security Islami Bank, Standard Bank, Premier Bank, National Bank and Bank Asia also saw their EPS grow by 51 per cent, 50 per cent, 46 per cent, 45 per cent and 17 per cent respectively.

Al-Arafah Islami Bank, Dhaka Bank, Islami Bank, NCC Bank, Prime Bank, Pubali Bank, Rupali Bank, Mutual Trust Bank, UCB, IFIC Bank and Shahjalal Islami Bank also saw their EPS grow in January-March, 2019 quarter.

Exim Bank's EPS returned to positive territory to Tk 0.25 for January-March, 2019 which was negative Tk 0.34 in the same quarter in the previous year.

In January-March 2019 quarter, AB Bank's EPS declined the most, by 37.50 per cent year-on-year, to Tk 0.10. Its EPS was Tk 0.16 in January-March, 2018.

ICB Islamic Bank's losses increased for January-March, 2019. The bank's EPS stood at negative Tk 0.16 in January-March, 2019 which was negative Tk 0.13 in the same quarter a year ago.

Mercantile Bank's EPS also fell 22 per cent to Tk 0.63 in January-March period of 2019 compared to the same quarter in the previous year.

EPS of Brac Bank, Dutch-Bangla Bank, ONE Bank, Social Islami Bank, Southeast Bank and Trust Bank also declined up to 20 per cent during the period under review.

The banking sector had to keep huge provisioning as the classified loans are soaring, and those with higher classified loans saw their EPS decline most, said a merchant banker, seeking anonymity.

He noted that that huge competition to attract deposits is another reason for the decline in many banks' EPS during the period under review.

[email protected]