Over 54% of listed banks in Bangladesh have reported a significant year-on-year increase in their profits for the January-March quarter of 2023. This growth can be attributed to factors such as higher deposits, increased recoveries of loans and advances, and boosted earnings from the forex division.
Out of the 35 listed banks, 16 lenders witnessed a rise in their net profits during the first quarter of 2023. However, 14 banks reported a decline in net profits compared to the same period last year. Among the profitable banks, nine recorded net profits exceeding Tk 100 crore each during the quarter. Conversely, ICB Islamic Bank and National Bank faced significant losses in the January-March period. Southeast Bank Limited emerged as the top earner among the listed banks, generating a net profit of Tk 147 crore during Q1 2023. However, Mercantile Bank experienced a decline in net profit to Tk 68 crore in Q1 2023, and National Bank incurred the highest loss of Tk 312 crore during the same period. Market analysts emphasize that fundamentally sound banks continue to perform well, while weaker banks face ongoing challenges. The sector’s ability to navigate crises and maintain stability will be crucial for sustained growth and profitability.