Islami Bank's profit rises 7% in second quarter

Islami Bank Bangladesh has reported a 7.2 percent increase in profit for the April-June quarter of 2024.

The profit amounted to Tk 307 crore whereas it was Tk 286.22 crore in the same period last year.

For the first half of the year, the bank's profit rose to Tk 356.92 crore from Tk 343.34 crore in the corresponding period of the previous year, according to its unaudited financial statements.

Thus, consolidated earnings per share for the January-June period of 2024 stood at Tk 2.22, compared to Tk 2.13 in the same period last year.

Islami Bank's consolidated net operating cash flow per share registered a significant improvement, reaching Tk 54.79 from Tk 39.21 in the negative a year ago.

Additionally, the bank's consolidated net asset value per share was Tk 46.06 in the first six months this year.

The latest data highlights its sustained profitability, following a profit of Tk 635.33 crore in 2023, its highest since 2019.

Islami Bank achieved a significant milestone last year by becoming the largest lender in the country by total deposits surpassing Sonali Bank, despite recent loan scandals.

The Shariah-compliant bank attracted deposits totalling Tk 153,456 crore in 2023, reflecting a 9 percent year-on-year increase.

In comparison, Sonali Bank, the largest state-run lender, mobilised deposits worth Tk 150,606 crore, an increase of 6 percent.

This development positioned Islami Bank as the largest bank in Bangladesh in terms of deposits and loans (investments).

Islami Bank's lending activity has consistently outpaced that of the state-run Sonali Bank for several years.

However, the non-performing loan (NPL) ratio of Islami Bank stood at 3.3 percent in 2022.

The Shariah-based lenderhas recently come under scrutiny due to widespread financial scams. For example, the bank allegedly disbursed Tk 7,246 crore in loans to nine companies in 2022 violating banking norms.

Established in 1983, Islami Bank Bangladesh has grown substantially, with a paid-up capital of Tk 1,609.99 crore. The bank operates 394 branches, 249 sub-branches, and 2,771 agent banking outlets across the country.

Shares of the bank were unchanged at Tk 32.6 on Dhaka Stock Exchange yesterday.