National Bank Limited (NBL) incurred a loss of Tk 766 crore in the first quarter (January-March) of 2024, which is 145 per cent higher than the amount recorded in the same period of 2023, due to high default loans.
The publicly traded bank had incurred a loss of Tk 1,497 crore in 2023, down by around 54 per cent from Tk 3,285 crore recorded in 2022.
As per its unaudited financial statements, NBL’s loss per share stood at Tk 2.38 in Q1 of 2024. It was Tk 0.97 in Q1 of 2023.
The country's first private bank in a statement on the Dhaka Stock Exchange (DSE) website on Thursday said that during the period, it could not book interest on loans and advances due to non-recovery from defaulters.
Furthermore, NBL incurred higher interest expenses on deposits and borrowings. Consequently, the period concluded with an operating loss, it added.
It further noted that the new board and the new management are exerting maximum effort to improve NBL’s financial health by streamlining recovery drives and mobilising low-cost deposits.
In Q1 of 2024, the bank’s net operating cash flow per share (NOCFPS) was negative Tk 7.14. It was negative Tk 2.27 in Q1 of 2023.
The consolidated net asset value NAV per share was Tk 4.92 as of March 31, 2024. It was Tk. 11.92 as of March 31, 2023.
The data comes after NBL passed several tumultuous weeks following Bangladesh Bank’s (BB) decision to merge it with United Commercial Bank (UCB). However, the NBL Board of Directors has decided that it will not merge with UCB.
One of the board members, requesting anonymity, told The Business Post, “We have decided not to merge with UCB. The board was restructured recently by the central bank and it is trying to improve the bank’s health with the government’s help."
“That is why our board thinks that it's not the right time to merge with another bank.”
According to BB data, NBL’s default loans stood at Tk 12,368 crore at the end of December last year. Moreover, its capital shortfall stood at Tk 608 crore at the end of September 2023.
Shares of the bank, which was listed on DSE in 1984, closed at Tk 6.40 per share on the trading floor of the Dhaka bourse on Thursday.
