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City Bank recorded a consolidated net profit of Tk 10.14 billion in 2024, setting a new milestone in Bangladesh’s banking sector. The profit was the highest in its 42-year history.
Although the bank, on a standalone basis, posted a net profit of Tk 10.85 billion, the consolidated profit declined to Tk 10.14 billion due to provisioning expenses against unrealised losses in the capital market investments by two of its subsidiary companies.
Last year, the consolidated net profit of the bank was Tk 6.38 billion. This marks a significant year-on-year growth of Tk 3.76 billion, or 59 per cent—a record growth figure for the bank.
This achievement is not just a milestone for City Bank alone but a historic moment for the entire banking sector of Bangladesh, according to industry insiders.
Until now, no conventional, locally owned bank has ever surpassed Tk 10 billion in net profit, the only exception being BRAC Bank, which announced their net profit of Tk 14.32 billion.
At a board meeting held on Tuesday, City Bank approved its financial statements for 2024 and declared a 25 per cent dividend —comprising 12.50 per cent in cash and 12.50 per cent in bonus shares. This is consistent with the dividend payout ratio from the previous year.
Subject to shareholder approval at the upcoming Annual General Meeting (AGM), the cash dividend alone will amount to over Tk 1.70 billion.
The record profit also positively impacted the bank’s earnings per share (EPS), which rose to Tk 7.53 in 2024 from Tk 4.74 in 2023—an increase of 59 per cent. Similarly, the net asset value (NAV) per share increased to Tk 34.39, up Tk 5.83 or 20.41 per cent from the previous year.
When asked about the reasons behind the record profit, Mashrur Arefin, managing director and chief executive officer (CEO), said, “People have placed their trust in City Bank, resulting in a surge in deposits. Our cost-to-income ratio dropped from 60 per cent to just 42 per cent, leading to a substantial rise in profit.”
He also said, “We also increased employee salaries by Tk 3.0 billion to motivate our workforce. Our board is honest and committed to the bank’s growth. We have a superior level of governance practices in the bank. These are the primary drivers behind our performance.”
In 2024, City Bank’s deposits grew by 31 per cent or Tk 121.77 billion, while loan growth stood at 12 per cent or Tk 48.31 billion. A significant portion of this surplus fund was invested in government securities, which increased by Tk 61.50 billion—rising from Tk 63.38 billion to Tk 124.88 billion.
An analysis of the bank’s income sources reveals that 64 per cent of total revenue came from interest income on loans, 12 per cent from fees and letter of credit (LC) commissions, and 19 per cent from treasury bill and bond investments.
The remaining 5.0 per cent came from private bonds, dividends, and stock market earnings. Altogether, 76 per cent of the bank’s income originated from core banking activities, underscoring its reliance on and efficiency in lending operations.
Additionally, the bank’s cash flow per share surged to nearly Tk 66.44 for 2024, compared to only Tk 2.90 in 2023—representing a 23-fold increase.