Eastern Bank’s Q3 profit down 23%

Eastern Bank PLC (EBL) reported a 23 percent year-on-year decline in net profit to Tk 140.91 crore in the July-September quarter of this financial year.

As a result, the private commercial lender's earnings per share fell to Tk 1.04 in the third quarter from Tk 1.35 the previous year, according to the bank's recently published unaudited financial statements. 

Despite the quarterly decline, EBL saw its profit rise over the first nine months of the current year. It posted a profit of Tk 462.73 crore, a more than 8 percent increase from Tk 425.78 crore in the same period the previous year. 

The bank's nine-month net interest income surged to Tk 791.60 crore, up from Tk 582.24 crore year-on-year. 

EBL attributed this growth to the removal of the lending rate cap and a broader loan portfolio. 

Additionally, its investment income jumped by Tk 185.55 crore, totalling Tk 789.36 crore in January-September period.

The private commercial lender credited increased yields, higher investment volumes in government securities, gains from repo transactions and quoted share sales for the uptick in investment income. 

The bank's cash flow also shot up. Its net operating cash flow per share (NOCFPS) soared to Tk 13.36 from Tk 3.59. 

The rise in NOCFPS was attributed to higher deposits, increased interest income, and gains in fees, commissions, and investment returns.