Most of the listed banks have reported higher earnings per share (EPS) in the first nine months (January-September’19) of the current year compared to the same period last year.
According to the Dhaka Stock Exchange (DSE) data until on Thursday, 29 out of 30 listed banks have disclosed their financial statements, where 22 banks have seen higher EPS while seven banks witnessed negative income growth during the period.
According to the un-audited financial statement, Standard Bank and EXIM Bank registered the highest income growth in the 3rd quarter. The EPS of Standard Bank grew by Tk 0.45 in the first nine month of the year (January – September) which was Tk 0.11 in the same period of last year. EPS of EXIM Bank stood at Tk 0.44, which was Tk 0.11 in the same period a year ago. Both the bank reported that earnings increased due to increase in the operating income and decreasing default loan.
Among others, EPS of IFIC Bank soared by 168% to Tk 1.45 in January – September period against Tk 0.54 in the same period last year. First Security Islami Bank’s EPS rose by 145% to Tk 1.30, up from Tk 0.53. Trust Bank’s EPS also jumped by 66% to Tk 2.70 from previous Tk 1.63.
According to DSE data, the EPS of Pubali Bank, Prime Bank, Dhaka Bank, City Bank, Jamuna Bank, Dutch-Bangla Bank, Eastern Bank, Islami Bank, Mercantile Bank, Mutual Trust Bank, Shahjalal Islami Bank, Southeast Bank, NCC Bank, Standard Bank, UCB, Uttara Bank, Premier Bank and Bank Asia Limited also rose in the first nine months of the year compared to the same period last year.
On the contrary, the EPS of One Bank, AB Bank, Rupali Bank, Brack Bank and SIBL registered negative growth during the period.
From January to September, One Bank’s EPS hit Tk 0.68, down from Tk 0.71 in the same period of last year. AB Bank’s EPS declined to Tk 0.19 against Tk 0.41 last time. Rupali Bank’s EPS plummeted to Tk0.40 for the first nine months of this year as against Tk0.46 for the same period last year.
Experts analyzed that most of the listed banks’ earnings are healthier due to better recovery of defaulted loans. Besides, the banks are now more compliant than before as they are following all directives of the central bank. They also add that, banks’ EPS rose during the period due to increase in their operating profits and decrease in required provision against their stressed loans.
Meanwhile, the rise in the profitability of the banking sector bears good news for the stock investors. The enhanced profitability of banks will have a positive impact in the stock market.