City Bank's net profit Tk 638 crore in 2023, growth 33%

In the face of economic challenges and a national slowdown, City Bank, a first-generation lender, achieved record profits in 2023, credited to its effective business policies and strategies.

According to a statement released on Wednesday (27 March), the bank reported a consolidated net profit after tax of Tk638 crore in 2023, marking an increase of 33.5% compared to Tk478 crore in 2022.

Accordingly, the bank has recommended a 15% cash dividend and a 10% stock dividend to its shareholders based on this impressive financial performance. Shareholders will vote on this proposal at the upcoming annual general meeting scheduled for 30 May 2024.

Despite experiencing a 74% drop in foreign exchange income due to the foreign currency crisis in 2023, City Bank managed to achieve an operating profit of Tk1,391 crore, up from Tk1,237 crore in 2022. This was attributed to the bank's ability to control its cost of deposits, expand its performing loan book, and generate substantial revenue from investments in government securities.

City Bank's net profit of Tk638 crore resulted in an impressive return on equity (ROE) of 17.7% in 2023.

Also, 26% of the bank's total income came from fees and commissions, with 40% of that income generated by its retail, cards, and small and micro lending businesses.

The consolidated earnings per share of City Bank stood at Tk5.21, up from Tk3.90 in 2022.

City Bank's remarkable expansion across all business lines, coupled with its commitment to sustainable and environmentally friendly objectives, as well as its emphasis on digitalisation, have attracted significant investor attention worldwide in recent years, said the statement