Islami Bank incurs loss of Tk100cr in Jul-Sep, its first quarterly loss in decades

Islami Bank Bangladesh incurred a loss of Tk100 crore in the July-September quarter of this year, an unprecedented event for the country's largest private lender in over three decades.

According to its price-sensitive statement published on Wednesday (30 October), the bank suffered a Tk0.62 loss per share during the quarter.

As per the consolidated basis (including income of its subsidiaries), its loss came down to Tk89 crore during the quarter. Its consolidated loss per share during the quarter was Tk0.55.

The bank said in the statement that it incurred a loss in July-September as total provision against investment — loans and advance — increased compared to the previous corresponding period.

At the end of the first nine months of this year, its consolidated net profit stood at Tk267 crore, which was 39% lower than the previous year at the same time.

At the end of September, its consolidated earnings per share was Tk1.66.

A senior officer who joined the bank in 1993 told TBS that he had never seen the bank encountering such losses since starting his tenure.

On 22 August, Islami Bank was freed from the grip of the controversial S Alam Group after nearly seven years, with the Bangladesh Bank appointing a new five-member board of directors to oversee the bank's operations.

According to sources from the central bank and documents from Islami Bank, as of 18 August 2024, the total loan portfolio of Islami Bank stood at Tk1.5 lakh crore, with total deposits amounting to Tk1,53,274.

Of these loans, Tk74,972 crore has been identified as benefiting the S Alam Group, which constitutes half of the total loans. 

The loans amounting to Tk14,427 crore were directly under the name of seven S Alam Group companies.