City Bank’s operating profit rises 77pc in nine months

City Bank recently hosted its third-quarter earnings disclosure event on a digital platform, revealing its financial performance for the first nine months of 2024. Investors from around the globe, along with researchers and analysts involved in the capital market, attended the event, according to a press release Monday.

The bank reported a consolidated operating profit of Tk 16.53 billion (Tk 1,653 crore), representing a 77 per cent growth compared to Tk 9.32 billion (Tk 932 crore) during the same period last year.

However, reflecting a highly cautious approach to loan provisioning, the bank’s consolidated profit after tax increased by 19 per cent, amounting to Tk 4.51 billion (Tk 451 crore) in 2024, up from Tk 3.79 billion (Tk 379 crore) in the same period last year.

The event began with a detailed presentation by Mahbubur Rahman, AMD and CFO of the bank. This was followed by an analysis from Mashrur Arefin, MD and CEO, who expressed his optimism about surpassing Tk 20 billion (Tk 2,000 crore) in operating profit by year-end.

In discussing the reasons behind the impressive 77 per cent profit growth, he highlighted that during the nine-month period, the bank’s deposits grew by Tk 101 billion (Tk 10,100 crore) while keeping the cost of deposits at a competitive 4.5 per cent. He pointed to significant increases in both interest income and income from investments in government securities.

Furthermore, he noted that the bank's overall income surged by 49 per cent, while expenses rose only 8.8 per cent, leading to a commendable reduction in the cost-to-income ratio to 42 per cent, down from 54.5 per cent last year.

Regarding the modest increase in profit after tax, Mashrur explained that management opted to maintain a substantial amount of additional provision (67 per cent of the total loan provision in 2024) on a subjective basis, which may be reassessed at year-end.

Also present at the event were Mesbaul Asif Siddiqui, DMD and Chief Risk Officer; AKM Saif Ullah Kowchar, DMD and HoICC; and Shah Alam, Head of Treasury.

City Bank has attracted considerable interest from the global investor community in recent years, driven by strong growth across all business lines and a commitment to digital banking and sustainable financing.