Bizdata Insights Main Logo

Banks Struggle with Lower Profits Due to Expensive Deposits

Industry: Bank, Financial

A majority of Bangladesh’s listed banks failed to record year-on-year growth in profits during the first quarter of 2023 due to lower net interest income caused by higher deposit rates. Last year, foreign currency exchange gains had helped most banks absorb inflationary pressure and post higher profits, but this year the exchange gain was not as overwhelming.

Deposits have become more expensive as the Bangladesh Bank has fixed banks’ deposit rates in line with inflation. Out of the 25 banks that disclosed their unaudited reports for the January to March quarter of 2023, 10 saw declines in profits and two incurred losses. The banking sector is facing a decrease in net interest income due to the ceiling on lending rates, a decline in exports, and an inability to issue letters of credit. While the share prices of most banks are stuck at floor prices, the price-earnings ratio in the banking sector is below 8%, making bank shares an attractive investment.

Source for more details:

Related News

Surge in Investments Raises Concerns for Islamic Banks

June 6, 2023

Investments made by full-fledged Islamic banks in Bangladesh have surged nearly nine times their deposits within a year, raising concerns about the overall health of the banking sector. Official figures show that these banks experienced a significant increase in loans, totaling Tk 46,011 crore, in the first quarter of 2023 compared to the same period in 2022.

DSE witnessed a huge surge in trading

June 5, 2023

In the maiden post-budget session, the Dhaka Stock Exchange (DSE) witnessed a significant surge in turnover, exceeding Tk 12 billion for the first time in seven months. The market's positive performance can be attributed to the absence of any new tax provisions or cuts to existing tax facilities in the proposed budget for FY24.

Bangladesh Bank issued notice for all money changers

June 5, 2023

The Bangladesh Bank has issued a notice stating that all licensed money changers in the country must become members of their relevant trade association by June 30, 2023. The central bank believes that this requirement will help streamline the operations of the money changing business.

Bank Asia and Grameenphone Join Forces for Financial Inclusion

June 5, 2023

Bank Asia Limited partners with Grameenphone to expand financial inclusion. Bank Asia Limited has entered into an agreement with Grameenphone to designate the mobile phone operator's retailers as micro-merchants for the bank. This collaboration aims to bring banking services to the doorstep of grassroots communities and support Bangladesh's goal of becoming a cashless economy.

Dhaka Bank Partners with PwC for Internal Audit Functions

June 5, 2023

Dhaka Bank Limited has entered into an agreement with PricewaterhouseCoopers (PwC) Bangladesh Private Limited for a Quality Assurance Review of its Internal Audit Functions. The engagement letter was signed by the Managing Director of PwC Bangladesh and the Managing Director & CEO of Dhaka Bank Limited.

Mercantile Bank Unveils Global Debit Card Service

June 5, 2023

Mercantile Bank Limited has introduced a global debit card service for its customers, marking the 24th anniversary of its operations. The bank's chairman highlighted the bank's achievements and emphasized future action plans, acknowledging the challenges posed by the Covid-19 pandemic and the Ukraine-Russia war.

Related News

Surge in Investments Raises Concerns for Islamic Banks

June 6, 2023

Investments made by full-fledged Islamic banks in Bangladesh have surged nearly nine times their deposits within a year, raising concerns about the overall health of the banking sector. Official figures show that these banks experienced a significant increase in loans, totaling Tk 46,011 crore, in the first quarter of 2023 compared to the same period in 2022.

DSE witnessed a huge surge in trading

June 5, 2023

In the maiden post-budget session, the Dhaka Stock Exchange (DSE) witnessed a significant surge in turnover, exceeding Tk 12 billion for the first time in seven months. The market's positive performance can be attributed to the absence of any new tax provisions or cuts to existing tax facilities in the proposed budget for FY24.

Bangladesh Bank issued notice for all money changers

June 5, 2023

The Bangladesh Bank has issued a notice stating that all licensed money changers in the country must become members of their relevant trade association by June 30, 2023. The central bank believes that this requirement will help streamline the operations of the money changing business.

Bank Asia and Grameenphone Join Forces for Financial Inclusion

June 5, 2023

Bank Asia Limited partners with Grameenphone to expand financial inclusion. Bank Asia Limited has entered into an agreement with Grameenphone to designate the mobile phone operator's retailers as micro-merchants for the bank. This collaboration aims to bring banking services to the doorstep of grassroots communities and support Bangladesh's goal of becoming a cashless economy.

Dhaka Bank Partners with PwC for Internal Audit Functions

June 5, 2023

Dhaka Bank Limited has entered into an agreement with PricewaterhouseCoopers (PwC) Bangladesh Private Limited for a Quality Assurance Review of its Internal Audit Functions. The engagement letter was signed by the Managing Director of PwC Bangladesh and the Managing Director & CEO of Dhaka Bank Limited.

Mercantile Bank Unveils Global Debit Card Service

June 5, 2023

Mercantile Bank Limited has introduced a global debit card service for its customers, marking the 24th anniversary of its operations. The bank's chairman highlighted the bank's achievements and emphasized future action plans, acknowledging the challenges posed by the Covid-19 pandemic and the Ukraine-Russia war.

Shopping cart

0
image/svg+xml

No products in the cart.

Continue Shopping

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here