2 banks report surprising profit growth in Q2
Insiders said the two banks - SJIBL and UCBL- showed strong performance in the second quarter of this financial year
Shahjalal Islami Bank Ltd (SJBL) and United Commercial Bank Ltd (UCBL) reported surprising growth in net profits in the second quarter of this year despite the Covid-19 pandemic making the economy volatile.
In the April to June quarter, SJBL posted 135% growth in earnings per share (EPS) to Tk1.06 while United Commercial Bank's EPS grew by 93% to Tk0.79 compared to the same period of the previous year.
Insiders said despite declining private sector credit and excess liquidity, the two banks showed strong performance in the second quarter of this financial year.
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They said the banks had protected themselves against the impacts of economic volatility by investing a huge amount in government securities.
Besides, the capital market boom also helped them experience such growth.
Meanwhile, considering the income of subsidiaries, Shahjalal Islami Bank's consolidated EPS grew by 162% to Tk1.1 in the second quarter.
At the end of the first half of this financial year, its consolidated EPS surged by 72% to Tk1.72.
On the other hand, United Commercial Bank's earnings from its subsidiaries dropped. That is why its consolidated EPS came down by 25% to Tk0.63 from the solo income in the second quarter.
However, at the end of the first half of this financial year, its consolidated EPS stood at Tk1.02, which was 42% higher than the same period of the previous year.
Shahjalal Islami Bank paid 7% cash and 5% stock dividends to its shareholders whereas United Commercial Bank declared 5% cash and 5% stock dividends for the last financial year.
Being a listed company, Shahjalal Islami Bank's shares were traded at Tk20.2 each, and United Commercial Bank's at Tk16, at the end of Thursday's trading session on the Dhaka Stock Exchange.
