City Bank’s Q3 profit surges 77%

City Bank PLC reported a 77 percent increase in profit to Tk 1,653 crore in the July-September period of 2024 driven by its cautious approach toward loan provisioning.

The operating profit was Tk 932 crore during the same period of the last year, said a press release.

The bank disclosed its 3rd quarter earnings at a virtual event yesterday, where investors from around the world, along with researchers and analysts involved in the capital market, attended the event.

The lender's consolidated profit after tax increased by around 19 percent, amounting to Tk 451 crore in 2024, up from Tk 379 crore in the same period last year.

Mashrur Arefin, managing director and CEO, expressed his optimism about surpassing Tk 2,000 crore in operating profit by year-end while presenting an analysis.

Discussing the reasons behind the 77 percent profit growth, Arefin 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 percent.

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 percent, while costs increased by only 8.8 percent, leading to a commendable reduction in the cost-to-income ratio to 42 percent, down from 54.5 percent last year.

Mahbubur Rahman, additional managing director and CFO of the bank, Mesbaul Asif Siddiqui, deputy managing director and chief risk officer, AKM Saif Ullah Kowchar, deputy managing director and HoICC, and Shah Alam, head of treasury, joined the event.