City Bank, United Commercial Bank witness profit growth
The high officials of the two banks said, the amount of default loans decreased as a cautious policy was taken by the banks in granting loans
Despite the sluggish trend faced by the banking sector, the net profit made by the City Bank and the United Commercial Bank Limited increased in the first three quarters of the current year.
The high officials of the two banks said, the amount of default loans decreased as a cautious policy was taken by the banks in granting loans.
The banks also stressed on realizing loans. Besides, a good number of loans were regularized thanks to a special opportunity given by the central bank. These had a positive impact on the profit made by the banks.
In the first nine months of 2019, City Bank made a net profit of Tk262 crore after paying taxes and its earning per share (EPS) was Tk2.58. During the same period in the previous year City Bank's net profit was Tk225 crore and the EPS was Tk2.21.
However, City Bank's profit decreased from July to September, when the bank made net profit of Tk77 crore. During the same period in the previous year its net profit was Tk86 crore.
Officials of City Bank said, the subsidiary organisations suffered losses due to a big fall in the share market.
On Wednesday the closing price of City Bank's share in Dhaka Stock Exchange was Tk23.20. Last year the highest price of the Bank's share was Tk35.20 and the lowest price was Tk22.30.
United Commercial Bank
In the first nine months of this year, United Commercial Bank made a net profit of Tk205 crore and its earning per share was Tk1.76. During the same period in the previous year its net profit was Tk188 crore and EPS was Tk1.62.
Meanwhile, United Commercial Bank Board collected Tk400 crore by issuing bonds. As per BASEL-III principles, they issue the bonds to gain risk-based capital adequacy.
In 2018 accounting year the Bank gave 10 percent stock dividend to its shareholders. That year the bank made a net profit of Tk266 crore.
On Wednesday in Dhaka Stock Exchange the closing price of the bank's share was Tk14.30. In the last year the highest price of the bank's share was Tk20.50 and the lowest price was Tk13.70.