Covid-19 consumes Brac Bank’s profit

Brac Bank's net profit has dropped drastically in the first quarter of this year due to the novel coronavirus pandemic.
 
Eastern Bank also has reported a massive decline in its net profit in the January to March period.
 
Brac Bank Ltd recently announced its first quarterly financial results, posting a significant drop of 32 percent in net profits compared to the same period of last year.
 
The bank generated Tk76.05 crore – Tk0.71 per share – in net profit during the quarter that ended on March 31. This is down from Tk129.20 crore – Tk1.04 per share – in the first quarter of 2019.
 
"First quarter earnings have dropped significantly mainly due to there being less income earned because of the Covid-19 pandemic – particularly from commission and fees income as well as increased operating expenditures, a provision requirement against loans and advances, plus off-balance sheet exposures," Brac Bank officials included in the first quarter's unaudited financial statement.
 
At the end of the first quarter, net asset value per share of the bank stood at Tk33.73. However, the bank's net operating cash flow per share was negative Tk5.
 
Meanwhile, Eastern Bank's net profit declined by three percent in the first quarter of the current financial year.
 
In that period, the bank posted a net profit of Tk83.55 crore and earnings per share of Tk1.03.
 
Prime Bank, on Thursday, declared a 13.50 percent cash dividend for its shareholders for the 2019 financial year.
 
However, that year, the bank's net profit decreased by 27 percent because it kept an increased amount of provisions against non-performing loans, said the bank officials.
 
In the 2019 financial year, Prime Bank's earnings per share was Tk1.47, down from Tk2.01 in the previous year.
 
The bank will hold its annual general meeting on July 9 to approve the dividend and annual audited financial statement. June 21 has been set as the record date for the dividend and annual general meeting.