Banking Sectors' profit Growth rate declines in 2011
The growth rate of operating profit of the country's Banking Sector specially private commercial
banks (PCBs) declined in the just-concluded calendar year -2011, as the banks
were mostly hit by plunging stocks, slashed spread and liquidity crisis.
A number of
private commercial banks's have been able to make only modest rate of growth of
their operating profits in 2011 over that of the previous calendar year. But the growth rate of operational profits of some other PCBs in 2011 were lower than that of 2010 causes economic sluggishness. Available figures of the PCBs showed a mixed trend about their
operating profits in the year as follows.
Operating profit, however, does not indicate the real financial picture
of a bank. Because, the banks have to make room for provisioning against bad
debts and taxes that have to be paid to the government from their operating
profits.
The operating profits of banks and non-banking financial institutions
are a major source of income tax collections from business entities by the
National Board of Revenue (NBR). As such, the aggregate position of operating
profits of PCBs will impact, favourably or otherwise, of NBR's direct tax
collections, depending upon the level of such profits.
The media representative could collect figures of operating profits of 17 banks, out of a
total of 30, until its going to the press at 10 pm Saturday.
"Higher deposit rates have pushed up our cost of fund in
2011," a senior official of a leading PCB told the media while explaining the
declining trend about rate of growth of their operating profits last year.
The weighted average spread between lending and deposit rates offered
by the commercial banks came down to 4.26 per cent in September from 4.28 per
cent in the previous month, according to the central bank statistics.The weighted average spread was 5.05 per cent in January in 2011.The weighted average lending rate stood at 13.71 per cent in September
while that of deposit rate was 9.45 per cent.The private banker also said a section of PCBs faced 'revaluation loss'
because of a marked decline in the prices of listed stocks for the last couple of months.
1. Among those banks, the Islami Bank Bangladesh Ltd. (IBBL) was the top
operating-profit earner - Tk 14.70 billion in 2011 against Tk 11.43 billion
earned in the previous year.
2. National Bank Ltd. (NBL) was placed at the second position with an
estimated earning of Tk 10.42 billion in operating profit, compared to that of
Tk 10 billion in 2010.
3. The Prime Bank Ltd. secured the third position earning Tk 8.25 billion
as operating profit in 2011 against Tk 6.70 billion earned in the previous
year.
4. Among the top-performers, Southeast Bank Ltd., made operating profits
worth Tk 6.10 billion in 2011 against Tk 6.80 billion in 2010.
5. The operating profits of EXIM Bank Ltd. came down to Tk 4.05 billion in
2011 from Tk 6.07 billion a year ago.
6. National Credit and Commerce Bank Ltd (NCCBL) made Tk 4.22 billion
operating profit in 2011 compared to Tk 4.10 billion in 2010.
7. The operating
profit of Mercantile Bank stood at Tk 3.90 billion in 2011.
8. The operating profit of Pubali Bank Ltd., which has the largest number
of branches among the PCBs, rose to Tk 5.97 billion in the just concluded year
from Tk 5.90 billion in 2010.
9. The operating profit of Eastern Bank Ltd. rose to Tk 5.00 billion last year
from Tk 4.50 billion in 2010.
10. First Security Bank Ltd. earned operating profit worth Tk 1.63 billion
in 2011 compared to Tk 1.20 billion in 2010.
11. The operating profit of Dutch Bangla Bank Ltd increased to Tk 5.14
billion in 2011 from Tk 4.50 billion in 2010.
12. Al-Arafah Islami Bank made operating profit worth Tk 4.50 billion in
2011 against Tk 2.90 billion of the previous year.
13. Social Islami Bank Ltd
(SIBL) earned Tk 3.06 billion in 2011 compared to Tk 1.63 billion in 2010.
14. The operating profit of Shahjalal Islami Bank Ltd. declined to Tk 3.15
billion in last year from Tk 3.90 billion in 2010.
15. The operating profit of the
Standard Bank Ltd came down to Tk 3.0 billion in 2011 from Tk 3.11 billion
2010.
16. Premier Bank earned operating profit worth Tk 2.38 billion in 2011
compared to Tk 2.85 billion in 2010.
17. The operating profit of Jamuna Bank rose to Tk 3.07 billion in 2011
from Tk 2.02 billion in 2010.
