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SBAC Bank PLC reported a staggering 158 per cent increase in profit for the third quarter of 2024, driven by rising investment income. The problem-ridden private commercial bank disclosed its unaudited profit results on Wednesday.
In a stock exchange filing on Wednesday, SBAC Bank stated that its third-quarter profit reached Tk 404 million, marking an increase of Tk 247 million compared to the same period last year.
In the first nine months of 2024, the bank's profit totalled Tk 783 million, reflecting a 58 per cent year-over-year increase.
The surge in profit is attributed to a sudden rise in share prices following the regime change and returns from government securities.
According to the bank, earnings per share (EPS) increased compared to the same period last year, thanks to higher investment income, lower administrative expenses, and reduced tax provisions, despite an increase in net interest income.
However, the bank experienced a decline in net cash flow during this period.
The consolidated net operating cash flow per share (NOCFPS) fell to Tk 1.38 for January-September 2024, down from Tk 2.63 for the same period in 2023. The decrease in NOCFPS is primarily due to an increase in loans and trading securities.
The bank's net asset value per share rose from Tk 13.50 to Tk 14.26 in the first nine months, thanks to the improved EPS.