National Bank incurs loss of Tk1,768cr in nine months
“During the period, the bank could not record interest on loans and advances due to non-recovery from defaulters,” the private sector lender stated in its first disclosure since the board’s reconstitution in August following the government changeover amid a mass uprising
National Bank incurred a staggering loss of Tk1,768 crore in the first nine months of 2024, compared to Tk1,134 crore in the same period last year, according to a stock exchange filing.
"During the period, the bank could not record interest on loans and advances due to non-recovery from defaulters," the private sector lender stated in its first disclosure since the board's reconstitution in August following the government changeover amid a mass uprising.
"Furthermore, the bank incurred higher interest expenses on deposits and borrowings," it added.
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According to its disclosures on Wednesday (30 October), National Bank's consolidated earnings per share (EPS) stood at a negative Tk5.49 in January-September, compared to a net loss per share of Tk3.49 during the same period in 2023.
Its consolidated loss in the third quarter widened compared to a year ago. Between July and September, it incurred a loss of Tk698.68 crore, compared to Tk499.06 crore in the equivalent period the year before. The net loss per share stood at Tk2.17, up from Tk1.55 a year earlier.
On a solo basis, its net operating cash flow per share decreased further to a negative Tk11.15 in the September quarter, as against a negative Tk1.53 in the same period in 2023.
Additionally, its consolidated net asset value (NAV) per share declined to Tk1.86 as of September, compared to Tk7.30 as of December 2023.
In mid-August, the Bangladesh Bank dissolved the bank's board for the third time on the grounds of numerous irregularities and formed a new board consisting of three shareholder directors and four independent directors.
The shareholder directors are BNP Vice Chairman Abdul Awal Mintoo, Moazzem Hossain, and Zakaria Taher.
National Bank incurred losses of Tk1,497 crore and Tk3,260.86 crore in 2023 and 2022, respectively, and did not pay dividends to its shareholders. Its retained earnings stood at a negative Tk 2,637 crore as of December 2023, according to its 2023 financial statements.
Due to its failure to declare dividends for two consecutive years, the Dhaka Stock Exchange downgraded the bank to the Z category last month.
