Home ›› 30 Apr 2022 ›› Stock
Most listed banks put up an impressive 2021 show thanks to rising demand for credits after the pandemic and benefits from loan classification given by the central bank.
Out of 33 listed banks, 23 banks disclosed their earnings results. Of them, 18 banks posted higher earnings per share (EPS) and five banks witnessed negative earnings.
EPS is a company's net profit divided by the number of common shares it has outstanding.
Loan moratorium facility and relaxing provision requirements last year bought some breathing space for the banks, making a positive impact on the earnings of the banks, according to bankers.
IFIC Bank was at the top of the banks to report yearly results, posting a 122 per cent growth in earnings. Its EPS stood at Tk 1.49 in 2021, which was Tk 0.69 in the same period a year ago.
“The benefits from the loan classification facility given by the Bangladesh Bank now come to the surface,” Premier Bank Company Secretary Mohammad Akram Hossain told The Business Post.
Banks also earned some money from the commission charged by disbursing loans from the government's Covid-19 stimulus packages, he added.
A large part of the growth, analysts say, was mainly driven by the stable interest rate, surging investment and easing provisions against defaulted loans.
However, they cautioned that despite the 2022 strong results, investors simply should not sit back and rake in profits as this is a tough, difficult environment where NPLs are rising and the US dollar is getting costlier against the local currency.
Banks are likely to experience continued traction in their operating performances, supported by the recovery in business growth, and a sustained reduction in provisions, they added.
Prime Bank came second and its EPS stood at Tk 2.78, up 78.26 per cent from Tk 1.61 a year earlier during the period.
Improvement in EPS is also seen in 2021 led by NRB Commercial Bank, Mercantile Bank, Premier Bank, Shahjalal Islami Bank, Bank Asia, City Bank, BRAC Bank and Eastern Bank.
