City Bank's 2023 net profit grows 33pc

The consolidated financial results of City Bank for 2023 have been announced, dividend proposed and Price Sensitive Information notified to the Securities & Exchange Commission.

The bank declared in its Board Meeting held on Wednesday a consolidated net profit after tax of Tk. 6.38 billion (638 crore) for the year 2023. This shows a 33.5% rise in net profit over Tk. 4.78 billion (478 crore) of 2022, says a press release.

The Board also recommended 15% cash and 10% stock dividends to its shareholders based on this superior financial performance. The recommendation will be presented before the forthcoming AGM of the bank to be held on 30th May 2024 for shareholders’ approval.

The accounts show that due to foreign currency crisis in 2023 its foreign exchange income dropped by 74% from the previous year.

However, the bank was still able to produce an Operating Profit of Tk. 13.91 billion (1,391 crore)—which is up from Tk 12.37 billion (1,237 crore) of 2022—as a result of being able to contain its cost of deposit, grow its performing loan book, and earn substantially from its investments in government securities. In 2023, the bank also took a loan provision-related cost hit of Tk. 2.56 billion (256 crore).

The net profit of Tk 6.38 billion (638 crore) has resulted in an impressive 17.7% ROE (return on equity) for City Bank in 2023.

One notable feature of the bank's earnings was that 26% of its total income came from fees and commissions, while 40% of that income was generated by its Retail, Cards, and Small & Micro lending businesses.

Consolidated earnings per share of City Bank stood at Tk. 5.21, up from Tk. 3.90 in 2022.

City Bank's notable expansion across all business lines, together with its commitment to sustainable and environmentally friendly goals and its focus on going fully digital have garnered significant attention from investors worldwide in recent years.