City Bank held its third quarter earnings disclosure event on a digital platform, announcing its profit increases by 77% in first nine months of 2024.
Investors from around the globe, along with researchers and analysts involved in the capital market, attended the event.
The bank reported a consolidated operating profit of Tk 1,653 crore, representing a 77% growth compared to Tk 932 crore during the same nine-month period last year.
However, due to a highly cautious approach toward loan provisioning, the bank's consolidated profit after tax increased by 19%, amounting to Tk 451 crore in 2024, up from Tk 379 crore in the same period last year.
The event began with a detailed presentation by Mahbubur Rahman, AMD & CFO of the bank. This was followed by an analysis from Mashrur Arefin, MD & CEO, who expressed his optimism about surpassing Tk 2,000 crore in operating profit by year-end.
Discussing the reasons behind the 77% profit growth, he noted that over the nine-month period, the bank’s deposits increased by Tk 10,100 crore while maintaining the cost of deposits at just 4.5%. He also highlighted significant growth in interest income and income from investments in government securities. Additionally, he pointed out that the bank's income has grown by 49%, while costs increased by only 8.8%, leading to a commendable reduction in the cost-to-income ratio to 42%, down from 54.5% last year.
Regarding the modest increase in profit after tax, Mashrur explained that management chose to maintain a substantial amount of additional provision (67% of the total loan provision in 2024) on a subjective basis, which may be reassessed at year-end.
Also present at the event were Mesbaul Asif Siddiqui, DMD & Chief Risk Officer; AKM Saif Ullah Kowchar, DMD & HoICC; and Shah Alam, Head of Treasury.
City Bank has garnered significant attention from the global investor community in recent years, driven by its notable growth across all business lines and its commitment to embracing digital banking and sustainable financing.
