The country’s banking sector’s profits in 2024 showed a mixed picture. The net or actual profits of some banks increased significantly. On the other hand, the profits of some banks decreased. However, many of the banks that suffered major looting during the previous Awami League government are believed to have incurred losses. The overall picture of the banks’ profits and losses in 2024 is not yet fully available. So far, the figures of 22 banks have been found. Of these, 13 banks’ profits increased. Of the remaining seven, the profits decreased, while the losses of two increased.
According to the banks’ data, BRAC Bank and City Bank saw the highest increase in profits. Dutch-Bangla Bank and Shahjalal Islami Bank saw a significant decline in profits. On the other hand, National Bank and ICB Islamic Bank saw increased losses.
Net or actual profit is calculated after saving security reserves and paying corporate tax from operating profit. The corporate tax of banks listed on the stock market is 37.50 percent and the corporate tax of unlisted banks is 40 percent. Meanwhile, Bangladesh Bank has strengthened its supervision while finalizing the annual financial report this time. They have inspected various loan projects of almost all banks on the spot and fixed the amount of loans to be shown as defaulted based on that. As a result, defaulted loans of most banks have increased. Many banks have suffered a blow in profits due to keeping security reserves as per the instructions.
This time, despite the high operating profit, additional safety reserves have been kept as required. This is a step to strengthen the bank’s foundation in view of future risks.
Industry insiders said that last year, banks got the opportunity to increase interest rates on loans. As a result, they earned good income from interest. Some banks also earned good income by investing in taka and dollars. Banks with a good reputation received a large amount of deposits. These deposits became a major tool for increasing their profits. On the other hand, banks that were controversial for various reasons continued to borrow money. As a result, they had to face pressure to pay interest. Overall, a few banks did quite well last year. On the other hand, most banks ended the year under pressure and crisis.
Those whose profits have increased:
An analysis of the actual profit figures of the banks shows that among private sector banks, BRAC Bank’s net profit increased to Tk 1,432 crore in 2024, which was Tk 828 crore in 2023. The bank’s Managing Director (MD) Selim RF Hossain recently said that , ‘BRAC Bank is at the top of the country in terms of good governance and compliance. That’s why we received a lot of deposits last year. When there was a crisis of confidence in many banks due to various irregularities, depositors chose BRAC Bank for their reliability. And besides ensuring the highest security of depositors’ deposits, we invested in profitable sectors. As a result, we were able to make record profits.’
City Bank’s profit increased from Tk 638 crore in 2023 to Tk 1,14 crore in 2024. For the first time, two banks in the country have entered the club and list of achieving a net profit of Tk 1,000 crore.
City Bank MD Masrur Arefin said, “People have placed their deposits with us, trusting us. Last year, our income-expense ratio decreased from 60 percent to 42 percent. As a result, there has been a big jump in profits.”
Apart from this, the profits of Pubali, Eastern and Prime Bank have increased significantly. Pubali Bank’s profit increased from Tk 698 crore to Tk 780 crore, Eastern Bank’s profit increased from Tk 611 crore to Tk 750 crore and Prime Bank’s profit increased from Tk 484 crore to Tk 745 crore. Bengal Commercial Bank’s profit increased from Tk 11 crore to Tk 63 crore. Citizen Bank had a loss of Tk 1.5 crore in 2023, but made a profit of Tk 4 crore in 2024.
Those who suffered a loss in profits: There has been a major decline in the net profits of several banks in the year under review. Among them, the profit of Dutch-Bangla Bank has decreased from Tk 802 crore in 2023 to Tk 473 crore in 2024. The profits of Trust Bank and Shahjalal Islami Bank have also decreased significantly. At the same time, the profit of Trust Bank has decreased from Tk 427 crore to Tk 373 crore and the profit of Shahjalal Islami Bank has decreased from Tk 358 crore to Tk 169 crore. The profit of Meghna Bank has decreased from Tk 68 crore to Tk 46 crore. The profit of Community Bank has decreased from Tk 79 crore to Tk 70 crore. Although there are no major problems in these four banks, the safety reserves have increased compared to before, which has hit the profits.
Dutch-Bangla Bank MD Abul Kashem Md. Shirin said that although the operating profit is high this time, additional safety reserves have been kept as per the requirement. This has been done as a step to strengthen the bank’s foundation by considering future risks.
Shahjalal Islami Bank MD Mosleh Uddin Ahmed said, “An additional Tk 4.3 billion in safety reserves has been kept compared to the demand. It may be necessary to keep more safety reserves next year. Because, business and trade are unstable and recession is going on. Because of this, our profits have decreased.”
On the other hand, the losses of National Bank and ICB Islamic Bank increased. Among them, National Bank’s loss increased from Tk 1,497 crore to Tk 1,706 crore and ICB Islamic Bank’s loss increased from Tk 56 crore to Tk 94 crore.
Meanwhile, the annual financial reports of more than half of the private sector banks have been delayed, which is why these banks are unable to finalize their financial reports and declare dividends.Bank officials said that the financial reports that the banks are preparing this time are factual. There is nothing hidden in it. Whether the situation is bad or good in the future, that picture will emerge in the report. Actually, the banking sector displayed a landscape of stark contrasts-while several banks reported record profits, others plunged into deeper losses, underscoring a sector still grappling with legacy issues, regulatory tightening, and shifting depositor sentiment.
A preliminary review of 22 banks’ annual reports reveals that 13 experienced an increase in net profit, seven recorded a fall, and two-National Bank and ICB Islamic Bank-saw their losses worsen. The complete picture will emerge once all banks publish their audited financials, but the early data paints a compelling picture of uneven performance driven by governance quality, depositor trust, loan classification reforms, and regulatory interventions.
Record Profits for Market Leaders: Among the winners, BRAC Bank and City Bank led the pack, each breaking the coveted Tk 1,000 crore net profit threshold for the first time in the country’s banking history. BRAC Bank’s net profit soared from Tk 828 crore in 2023 to Tk 1,432 crore in 2024. Its Managing Director, Selim RF Hossain, credited the performance to the bank’s reputation for strong governance and compliance.
“BRAC Bank is at the top of the country in terms of good governance. That’s why depositors trusted us at a time when confidence in many banks was low. We ensured the security of deposits and invested in profitable sectors,” Hossain explained.
Record-Breaking Performances amidst Turbulence: Despite economic uncertainties, several banks reported unprecedented operating profits in 2024. Notably, five banks-Islami Bank, BRAC Bank, City Bank, Pubali Bank, and Dutch-Bangla Bank-each surpassed the Tk 2,000 crore mark in operating profits, signaling robust operational performance.
Islami Bank: Achieved the highest operating profit of Tk 3,400 crore, up from Tk 2,261 crore in 2023. However, substantial provisions for bad loans, particularly those linked to the S Alam Group, are expected to impact net profits significantly.
BRAC Bank: Reported an operating profit of Tk 2,400 crore, a 72% increase from the previous year. Net profit after tax (NPAT) for the first nine months stood at Tk 1,011 crore, reflecting a 74% year-on-year growth. The bank’s non-performing loan (NPL) ratio improved to 2.80% from 3.38% in December 2023. City Bank: Recorded its highest-ever operating profit of Tk 2,287 crore, marking a 69.5% increase from 2023. The bank attributed this growth to a cautious approach toward loan provisioning and significant gains in investment income.
Pubali Bank: Achieved an operating profit of Tk 2,375 crore, a 55% increase from Tk 1,535 crore in 2023. The bank’s net profit is expected to exceed Tk 1,000 crore after adjustments.
Dutch-Bangla Bank: Reported an operating profit of Tk 2,285 crore, up from Tk 1,431 crore in 2023. The bank’s low cost of funds and strong liquidity base contributed to this performance.
Struggles and Setbacks: Banks Facing Losses: Contrastingly, several banks faced significant challenges, with some reporting increased losses due to rising NPLs and regulatory interventions.
National Bank: Continued its loss-making trend, reporting a loss of Tk 1,706 crore in 2024, up from Tk 1,497 crore in 2023. The bank has been under scrutiny for financial irregularities and has received liquidity support from other banks.
ICB Islamic Bank: Reported a loss of Tk 94 crore in 2024, compared to Tk 56 crore in 2023. The bank has a history of financial troubles, with accumulated losses nearing Tk 20 billion as of 2022.
Shahjalal Islami Bank: Experienced a significant decline in net profit, from Tk 358 crore in 2023 to Tk 169 crore in 2024. The bank increased its safety reserves in anticipation of future risks.
Trust Bank: Saw its profit decrease from Tk 427 crore in 2023 to Tk 373 crore in 2024, primarily due to increased provisioning for bad loans.
Regulatory Interventions and Sector-Wide Challenges: The Bangladesh Bank intensified its oversight in 2024, enforcing stricter loan classification and provisioning standards. This led to a notable increase in NPLs across the sector, with the overall NPL ratio rising from 16.9% in September to 20.2% in December 2024.
Several banks required liquidity support to maintain operations. For instance, National Bank received Tk 270 crore, and First Security Islami Bank received Tk 300 crore from other financial institutions.
Outlook and Recommendations: The contrasting performances in 2024 highlight the need for systemic reforms in Bangladesh’s banking sector. Key recommendations include:Enhanced Governance: Strengthening internal controls and board oversight to prevent financial mismanagement.Risk Management: Implementing robust risk assessment frameworks to identify and mitigate potential defaults.Regulatory Compliance: Ensuring adherence to central bank guidelines to maintain financial stability.Transparency: Promoting transparency in financial reporting to restore depositor and investor confidence.
