National Bank’s losses surge 40% in Q3

National Bank Ltd (NBL) reported a 40 percent rise in losses for the July-September quarter of 2024. 

The bank made a loss of Tk 698.68 crore, up from Tk 499.05 crore in the same period last year. 

The lack of loan recoveries from the defaulters prevented the bank from booking interest on its loans and advances, according to a disclosure on the Dhaka Stock Exchange website.

The consolidated loss per share worsened to Tk 2.17, compared to Tk 1.55 a year ago. 

Despite the staggering loss, share price of NBL rose 10 percent to Tk 5.5 today on the DSE floor.

Additionally, rising interest expenses on deposits and borrowings further squeezed the bank's financials, contributing to a substantial operating loss.

NBL noted that these challenges resulted in "significant deviations" in key financial metrics, including earnings per share, net operating cash flow per share, and net asset value per share.