Local banking leader City Bank PLC reports 162% net profit growth in Q1 2026 (31 March 2026), demonstrating sustained growth across key areas compared to the same period of the previous year.
The bank’s profit after tax (PAT) stood at BDT 241 crore, compared to BDT 92 crore in Q1 2025. This represents a growth of over 162%. Earnings per share (EPS) also increased to BDT 1.6 from BDT 0.6, reflecting enhanced shareholder value, according to a media release.
The bank’s MD & CEO Mashrur Arefin was, however, cautious in expressing his happiness.
He said, ‘While I am happy with such a strong increase in profit, I am equally concerned about the sharp slowdown in credit growth in the first quarter. The direction in which credit growth in our sector is heading is, quite frankly, a matter of great concern.‘
The bank‘s strong Q1 performance was primarily driven by solid growth in core banking income.
Interest income from loans rose by 14%, increasing from Tk. 1,143 crore to Tk. 1,306 crore. Investment income also recorded robust growth, rising from Tk. 603 crore to Tk. 1,014 crore, contributing 32% of total operating income. At the same time, fee and commission income increased by 27%, led by higher foreign exchange earnings, card-related fees, and trade commissions.
In Q1, the bank's total income grew by more than 38%, reaching BDT 1,338 crore. Expenses were well controlled at BDT 595 crore, resulting in a notable improvement in the cost-to-income ratio, which declined to 44% from over 52% in the same period last year.
Operating profit rose sharply by more than 61% to BDT 743 crore, up from BDT 461 crore in the same period last year.
Additionally, improved asset quality contributed to optimized provisioning levels, further supporting bottom-line growth.