In a year marked by financial uncertainty, five banks in Bangladesh have emerged as beacons of resilience and trust. Islami Bank, already a leader in the sector, has been joined by BRAC Bank, City Bank, Pubali Bank, and Dutch-Bangla Bank in reaching the coveted Tk 2,000 crore milestone in operating profit.

This milestone is not just about numbers; it is a testament to their strategic foresight, customer confidence, and ability to navigate a volatile financial landscape.

At a time when many banks are struggling with liquidity crises and rising default loans, these five have defied the odds, leveraging strong governance, innovative banking solutions, and a loyal depositor base to set new benchmarks in the sector.

But what really drove this success? How did they outperform their peers in a challenging economy? As the final audits unfold, expectations are high that these banks will also report net profits exceeding Tk 1,000 crore.

Operating profit is a key indicator of a bank's overall performance, offering insights into its financial health and the quality of services provided to customers. Ultimately, this contributes to the bank's net profit.

"Operating profit is banks' net profit from its overall operation which takes into account Interest income from loans and investment, interest expenses and fees and commission income by providing services to their customers. After keeping provisions against loan, good and bad, as per regulation and deducting corporate tax on operating profit comes the real profit of the bank which is actually meaningful for their shareholders," says Md. Arup Haider, Deputy Managing Director and Head of Retail Banking at City Bank.

Bank insiders attribute the recent surge in operating profits primarily to the rise in loan interest rates, along with substantial earnings from commission income, bonds, treasury operations, and foreign exchange transactions.

Mohammad Ali, Managing Director & CEO of Pubali Bank, notes that the sharp increase in operating profits for certain banks is closely tied to instability in the sector. "Had all banks remained stable, neither our deposits nor profits would have grown at this pace. When depositors lost confidence in other banks, they shifted their funds to institutions they perceived as more secure, prioritizing financial safety over higher interest rates," he explains.

Islami Bank

Islami Bank, the first Islamic bank in the country, achieved the highest operating profit in 2024, totaling Tk 3,400 crore, a significant increase from Tk 2,261 crore in 2023. However, despite these impressive operating figures, the actual profit in 2023 was just Tk 610 crore, compared to a net profit of Tk 592 crore in 2022, when the operating profit was Tk 2,215 crore. This discrepancy highlights the impact of substantial deductions for bad loans and other expenses.

This year, while Islami Bank has set a new record for operating profit, its actual profit may see a considerable decline due to a large portion of loans issued to the S Alam Group remaining unrecovered. Nevertheless, the bank is optimistic about achieving better net profits in the near future, following an overhaul supervised by Bangladesh Bank aimed at restoring its financial position.

"Within five months, the board was able to add fresh Tk 8,500 crore in deposits. With good fund mobilization, the bank also made an operating profit exceeding Tk 2,000 crore. This achievement speaks volumes about the strategies taken by the board of directors, who are committed to safeguarding depositors' funds," mentions Obayed Ullah Al Masud, Chairman of Islami Bank Bangladesh.

BRAC Bank

BRAC Bank, the most SME-focused bank in the country, has emerged as the second-highest performer in terms of operating profit in 2024, reporting Tk 2,400 crore, a substantial increase from Tk 1,393 crore in 2023. The bank's net profit last year was Tk 730 crore, and in 2024, the actual profit is expected to exceed Tk 1,000 crore after adjustments. Managing Director and CEO of BRAC Bank, Selim R. F. Hussain states, "Achieving an operating profit of Tk 2,000 crore symbolizes financial success and the incredible trust our customers and stakeholders place in us."

Pubali Bank

Pubali Bank, the oldest bank founded by local entrepreneurs, recorded an operating profit of Tk 2,375 crore in 2024—a remarkable 55% increase from Tk 1,535 crore in 2023. That year, the bank's net profit amounted to Tk 679 crore.

Commenting on the bank's performance, Managing Director Mohammad Ali says, "We attracted significant deposits as several banks faced difficulties. Additionally, our focus on delivering better services and constant innovation played a key role in our strong year-end performance. However, the final net profit is subject to the central bank's inspection. I am optimistic that it will exceed Tk 1,000 crore."

City Bank

City Bank, known for its strong focus on consumer loans while maintaining a substantial portfolio of corporate and SME customers, joined the Tk 2,000 crore club in operating profit. In 2024, the bank recorded its highest-ever operating profit of Tk 2,287 crore, up from Tk 1,350 crore in 2023. The net profit for 2023 stood at Tk 615 crore.

Commenting on the achievement, Md. Arup Haider, Deputy Managing Director and Head of Retail Banking at City Bank, says, "Through consistent performance over the years, we reached a significant milestone in 2024 by crossing an operational profit of Tk 2,000 crore. City Bank fosters trust and delivers excellent service through strong corporate governance. Customers are now more conscious and they prefer service quality, and trust over rates."

Dutch-Bangla Bank Limited

Dutch-Bangla Bank Limited, a pioneer in mobile banking services in the country, achieved an operating profit of Tk 2,285 crore in 2024, up from Tk 1,431 crore in 2023. The bank's net profit in 2023 stood at Tk 854 crore. Its low cost of funds significantly contributed to this strong financial performance.

"We are now a happy family of 6.30+ crore customers. They have contributed to a huge amount of low-cost deposits for the bank. The bank maintains a strong liquidity base. We have sufficient capital to finance large corporates," notes Abul Kashem Md Shirin, Managing Director of Dutch-Bangla Bank.

Sustaining Growth: The Road Ahead

As these five banks celebrate their record-breaking operating profits, their leadership remains focused on ensuring long-term stability and sustainable growth in Bangladesh's banking sector. With the industry at a crossroads, key stakeholders are advocating for strategic reforms, technological advancements, and stronger governance frameworks.

Obayed Ullah Al Masud, Chairman of Islami Bank Bangladesh, stresses the need for regulatory reforms to curb financial mismanagement. He reveals that tycoons linked to the former administration siphoned off $17 billion, highlighting the urgency of stricter oversight. He advocates for Basel III adoption, stronger anti-money laundering measures, and corporate governance reforms, including board accountability and independent audits. Addressing non-performing loans, he calls for better credit risk management, asset reconstruction, and faster insolvency resolution, with ESG principles integrated into banking decisions.

Mashrur Arefin, Managing Director & CEO of City Bank, underscores the urgency of banking reforms, highlighting five critical areas: restoring public trust, ensuring financial inclusion, embracing technological adaptation, prioritising sustainability, and strengthening governance. He insists that the sector must undergo a cultural shift, with banks, regulators, and customers working together to build a more resilient financial ecosystem.

Selim R. F. Hussain, Managing Director & CEO of BRAC Bank, reinforces the significance of governance and transparency. He believes that sound financial management, coupled with innovation and a customer-centric approach, will be the key to sustainable banking. By balancing digital transformation with human connection, banks can create long-term value for both customers and society.

For Mohammad Ali, Managing Director & CEO of Pubali Bank, strong corporate governance and skilled leadership are essential. He argues that the banking industry must offer competitive salaries and benefits to attract and retain top-tier professionals, ensuring the sector is led by individuals with expertise and integrity.

Abul Kashem Md Shirin, Managing Director of Dutch-Bangla Bank, emphasises the transition towards a cashless economy. He believes that discouraging cash transactions by making them costly, while keeping digital transactions free, will accelerate financial inclusion. He also stresses the need for wider adoption of QR payments in rural areas and improved banking facilities for expatriates to boost remittance flows.