NBFIs show mixed performances
Twenty-two out of 30 listed banks with the capital market posted a lower profit in the first nine months of this year compared with the corresponding period of 2012 due to existing poor business environment and a Bangladesh Bank’s directive to keep more provisions against defaulted loan.
On the other hand, non-bank financial institutions showed mixed performances in the first nine months of the present year compared with the same period last year. But NBFI sector people attributed unstable political situation and stock market downtrend to the present situation in the sector.
Concerned people in the banking and NBFI sector said that a large number of investors were waiting to make their next investment move as they found the present political situation risky for making fresh investment. That is why banks are paying interests against deposits without making any profit by lending the fund as loans, they said.
On the other hand, due to the poor business situation, the lenders are failing to pay instalments of loans in time which are pushing the amount of non-performing loans up and creating extra pressure on the financial institutions of keeping provisioning against the loan amount, they said.
The 22 listed banks which made less profit during July-September are: AB Bank, Al-Arafah Islami Bank, BRAC Bank, Dhaka Bank, Dutch-Bangla Bank, Eastern Bank, EXIM Bank, First Security Islami Bank, ICB Islamic Bank. Islami Bank Bangladesh, Jamuna Bank, Mercantile Bank, Mutual Trust Bank, National Bank, NCC Bank, One Bank, Prime Bank, Pubali Bank, Shahjalal Islami Bank, Social Islami Bank, Standard Bank and Trust Bank.
National Bank is the worst sufferer as the bank incurred losses of Tk 385.62 crore from January-September period against its profit of Tk 120.82 crore in the same period last year.
Banks made increased profit during the first nine of the current year are: Bank Asia Ltd, City Bank, IFIC Bank, Premier Bank, Rupali Bank, Southeast Bank, United Commercial Bank and Uttara Bank.
Pubali Bank managing director and chief executive officer Helal Ahmed Chowdhury told New Age on Thursday that there were several reasons for decline of the banks’ profit. An increase in defaulted loan, delay in business expansion due to the present political situation, fall of import which is one of the major income sources of the bank and increase of provisioning against the non-performing loan can cause profit fall of the banks.
‘I think that the situation will start to change in the next year when banks will start to come out of the increased number of bad loans against the backdrop of some connecting measures taken by Bangladesh Bank’, he said.
Then the listed banks will be able to declare some dividends for their shareholders, Helal said.
On the other hand, out of the 23 listed NBFIs, 20 disclosed their financial statements for the January-September period. Of them, 11 managed to improve their performance during the period compared with the same quarter of the previous year, while the rest nine companies made declined profit during the period.
The NBFIs showed improved performances during the period are: Bangladesh Industrial Finance Company, FAS Finance, First Lease Finance, GSP Finance Company (Bangladesh), IPDC, Islamic Finance, LankaBangla Finance, National Housing Finance, Prime Finance, United Leasing and Uttara Finance.
While, Bangladesh Finance, Bay Leasing, Fareast Finance, IDLC Finance, International Leasing, Peoples Leasing, Phoenix Finance, Premier Leasing, Union Capital, showed declining performance during the period.
Bangladesh Leasing and Finance Companies Association president Assad Khan told New Age that the NBFIs were the worst sufferer in the present gloomy business environment as the number of bad loan increased significantly due to the reason.
Most of the NBFIs failed to make any business last year due to the contractionary monetary policy taken by Bangladesh Bank in last year, but the situation is changing a bit which will take time to reflect in the financial statement, Assad said.
‘Capital market was an important sector of investment for the NBFIs, but now we are keeping provisioning against losses in the capital market,’ he said.
Bank profit/loss
Bank name Jan-Sept 2012 (Taka in million)
(Taka in million) Jan-Sept 2013
NBL 1,208.24 -3,856.20
Premier Bank -373.82 -1,131.17
ICB Islamic Bank -168.49 -414.13
Mutual Trust Bank 387.23 -107.73
Exim Bank 1,132.71 17.07
Jamuna Bank 776.26 264.07
SIBL 822.91 338.22
One Bank 728.81 346.39
NCCBL 629.12 385.22
Trust Bank 857.85 418.19
Dhaka Bank 497.30 424.45
FSIBL 507.68 426.08
Prime Bank 2,129.11 434.82
Standard Bank 796.88 484.72
AB Bank 1,035.98 621.92
City Bank 550.33 609.52
Bank Asia 262.48 736.23
Mercantile Bank 1,045.78 796.85
Rupali Bank 450.65 802.19
SJIBL 1,437.66 835.56
Uttara Bank 887.19 927.62
Eastern Bank 1,226.97 1,041.31
IFIC Bank 712.12 1,236.63
AIBL 1,783.83 1,313.97
Pubali Bank 1,336.49 1,325.34
BRAC Bank 1,272.88 1,364.79
DBBL 1,553.84 1,381.20
Southeast Bank 1,201.60 1,469.44
UCBL 723.77 1,526.93
Islami Bank 5,048.95 1,939.46
NBFI profit/loss
NBFI name Jan-Sept 2012 (Taka in million)
(Taka in million) Jan-Sept 2013
Fareast Finance -74.27 -96.30
International Leasing 43.66 -28.14
Premier Leasing 5.32 2.75
FAS Finance -17.41 2.95
BIFC -87.73 6.11
Bangladesh Finance 37.11 19.64
Union Capital 52.76 23.18
GSP Finance Company 51.70 66.52
IPDC 14.66 71.29
Islamic Finance 66.01 73.08
National Housing Finance -2.47 111.16
Bay Leasing 136.95 132.88
Prime Finance 60.41 151.95
First Lease Finance 88.99 155.64
United Leasing 142.19 193.25
Peoples Leasing 279.17 206.55
Phoenix Finance 247.79 236.42
IDLC Finance 560.83 361.71
LankaBangla Finance 379.44 429.16
Uttara Finance 691.65 705.38
-With New Age input
