Dhaka Bank posts 161% leap in profit in Q2
Its operating profit increased by 33% in this period
Dhaka Bank's consolidated net profit in the second quarter (April to June) of 2021 jumped by 161% on the back of an increase in operating income amid the coronavirus pandemic.
During this period, the bank's net profit was Tk44.63 crore, which was Tk17.09 crore in the same period of 2020.
Also in this period, the bank's consolidated operating profit increased by 33% to Tk289.81 crore, which was Tk217.97 crore in the same period of 2020.
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In the second quarter, its earnings per share (EPS) was Tk0.47, which was Tk0.18 in the same period of 2020.
The bank's principal activities are to provide a wide array of financial products (loans and deposits) and services, which include all kinds of conventional and Islamic banking services, for its customers.
It offers corporate banking, retail banking, trade services, cash management, treasury, SME, retail, custodial, and clearing services.
From January to June 2021, the bank's EPS was Tk1.1, which was Tk0.79 in the same period of 2020.
Dhaka Bank was listed on the stock exchanges in 2000.
Out of its total shares, sponsors and directors jointly hold 41.12%, institutional investors 13.56%, and general investors 45.32%.
The last trading price of its shares at the Dhaka Stock Exchange was Tk14.8 each on Wednesday.
Most banks reported moderate operating profits amid the pandemic in the first six months of this year, mainly on the back of a spread between lending and deposit interest rates and a lower provision against default loans.
According to the central bank, the average interest rate on bank deposits in the first six months of last year was around 5.5-6%.
But in the January-April period of this year, the rate came down below 4.5%.
Bankers say most banks have invested their excess liquidity in treasury bonds due to low demand for loans. Lenders have received massive profits from there.
Again, due to the closure of loan classification as a result of the pandemic, banks had to keep much fewer reserves (provision) against loans than usual.
