Exim Bank posts robust growth as provision declines

Exim Bank’s net profit jumped by 72.79 per cent to Tk372 crore as provisioning against non-performing loans (NPLs) declined sharply in 2022.

However, income from investments in shares and securities plunged by 19 per cent in the same period.

Provision is a certain amount of money set aside to cover specific future financial impacts and decisions such as bad debt, taxes and expansions etc.

This helps paint a more accurate picture of a company’s financial situation.

The Shariah-based bank showcased remarkable growth and resilience amid a challenging economy, with a net profit after provision and tax of Tk 372 crore in 2022, increasing from Tk 215 crore in the previous year.

However, the bank’s investment in shares and securities decreased to Tk 3, 534 crore in 2022 from Tk 4, 349 crore in the previous year.

It also witnessed a rise in total deposits, amounting to Tk 42,601 crore in 2022 compared to Tk 42,067 crore in the year before. Total investment in 2022 reached TK 45,254 crore, a 5.68 per cent increase from the previous year.

Meanwhile, to tackle non-performing investments, the bank formed recovery teams at its branches and a task force at the head office. These teams analysed accounts and provided expert recovery advice. Also, the Investment, Monitoring, Law and Recovery Division collected regular updates. Legal proceedings were expedited and non-legal measures like rescheduling were implemented. The branch managers also exercised caution in selecting clients and monitoring accounts. Training courses and workshops were regularly held to enhance recovery strategies.

Chairman of Exim Bank, Nazrul Islam Mazumder said in the latest annual report, “In pursuit of never-ending excellence, we have been relentlessly trying to improve the Bank’s operational efficiency and its delivery system. Risk management is also one of our key focuses. I urge us to be more careful in our IT-related activities to prevent financial scams.”

“We are accumulating impetus to push our profit to a new height. Our wide acquaintance and acceptance are our strengths. The bank is marching through a strategic route in a planned manner. Its product variety has been attracting people from every corner of society,” he added.

Exim Bank’s net asset value (NAV) per share stood at TK 22.01 in 2022, a visible improvement from TK 21.72 in the year before. Its earnings per share (EPS) increased significantly, reaching TK 2.57 in 2022 compared to TK 1.49 in the previous year.

The bank’s import and export businesses amounted to TK 25,013 crore and TK 27,649 crore, respectively. In regards to the decrease in import performance, it experienced growth in export performance. With its exports reaching Tk 26,996 crore in 2022, increasing from Tk 21,197 crore in the previous year. Foreign remittance also increased by 7.90 per cent, with a total amount of TK 6,27 crore in 2022.

Despite global uncertainties resulting from the Russia-Ukraine war, high inflation, and the ongoing impact of the COVID-19 pandemic, Exim Bank successfully managed to maintain a robust capital position. Its capital-to-risk-weighted asset ratio (CRAR) stood at 13.76 per cent as on December 31, 2022, surpassing the minimum requirement of 12.50 per cent. The bank’s total assets amounted to Tk 54,003 crore in 2022.

Managing Director and CEO of Exim Bank, Mohammad Feroz Hossain stated, “The bank has consistently shown its commitment to serving various segments of the population. It has introduced specialised branches to be able to serve female customers, such as the Gulshan Mohila Branch in Dhaka.”

“Every year, we tailor new products for our customers according to their special needs. In addition to providing deposit-investment services through regular Islamic modes, so far Exim has branded many deposit and investment products, which convey the distinct look and feel of the bank and have earned much popularity among banking connoisseurs,” he said.

Moreover, Exim Bank provides a wide range of banking solutions for diverse customer groups, including women, students, senior citizens, farmers, and entrepreneurs as well.

Technological advancements have played a pivotal role in the bank’s operations. Exim Bank offers Internet banking services through Aiser, which experienced a 25.08 per cent increase in processed transactions in 2022. The bank’s ATM and POS transactions also saw significant growth.

Additionally, Exim Bank actively contributes to society by providing scholarships to meritorious students and has established the first private agricultural university in Bangladesh called the Exim Bank Agricultural University Bangladesh (EBAUB).

The publicly traded bank declared a 10 per cent cash dividend for its shareholders for the year 2022.

With a market capitalisation of Tk 1,505 crore, Exim Bank closed its shares at Tk 10.40 on Thursday’s trading floor of the Dhaka Stock Exchange.