National Bank PLC reported a wider loss in the first half of 2026 as it failed to recognize interest income on a significant portion of its loan portfolio due to poor recoveries, while funding costs remained elevated.
The bank posted a consolidated loss per share (EPS) of Tk 7.10 for January-June 2026, compared with a loss of Tk 3.06 (restated) in the same period a year earlier.
For the April-June quarter alone, consolidated EPS deteriorated to a loss of Tk 3.58, from Tk 2.37 (restated) in the corresponding quarter of 2025.
Net operating cash flow per share (NOCFPS), on a solo basis, stood at negative Tk 2.27 for the January-June period, compared with negative Tk 9.26 a year earlier.
The bank's financial position also weakened sharply, with consolidated net asset value (NAV) per share falling to negative Tk 14.49 as of June 30, 2026, from negative Tk 1.91 a year earlier.
The bank said in its earnings note that it could not recognize interest income on rescheduled loans under grace periods and on delinquent loans because of non-recovery. At the same time, interest expenses on deposits and borrowings remained unchanged, resulting in an operating loss during the reporting period.
Consequently, the bank said earnings, net asset value and operating cash flow recorded significant adverse variances.
Despite the setbacks, the board of directors and management of the bank said they remain committed to restoring the bank's financial strength through intensified loan recovery efforts, mobilising low-cost deposits and implementing other strategic measures aimed at improving overall financial performance. babulfexpress@gmail.com