Banks bank on low provisioning

Most of the listed banks witnessed rise in EPS (earnings per share) for July-September, 2020 compared to same period of the previous year.

Officials said the banks' EPS rose following the central bank's policy support provided for not classifying any loans till December to cope with the COVID-19 situation.

Many of 30 listed banks saw significant or moderate rise in EPS for July-September, while some banks reported positive earnings for July-September, 2020 against the loss incurred for same period of previous year.

"Banks were not required to classify any loans following the central bank's policy support. That's why the EPS rose as they did not keep provision against the loans," said Md. Abdul Halim Chowdhury, managing director at Pubali Bank.

Asked, a senior official of the central bank has also echoed with Mr. Halim Chowdhury.

The president of Bangladesh Association of Publicly Listed Companies (BAPLC) Azam J Chowdhury said EPS of the banks rose for July-September mainly for not keeping provision against bad loans.

"The payments of bad loans were deferred following the central bank's instruction for not classifying loans till December this year," said Mr. Chowdhury while he was skeptical about the growth of many banks' EPS.

Of the banks, EXIM Bank has reported a consolidated EPS of Tk 0.43 for July-September 2020 as against the loss of Tk 0.12 for July-September, 2019.

The bank's consolidated EPS also rose to Tk 1.43 for January-September 2020 as against Tk 0.44 for January-September 2019.

The City Bank posted consolidated EPS of Tk 1.99 for July-September 2020 as against Tk 0.76 for July-September 2019.

The consolidated EPS was Tk 3.04 for January-September, 2020 as against Tk. 2.58 for January-September, 2019.

The consolidated EPS of Al-Arafah Islami Bank rose to Tk 0.50 for July-September 2020 from a loss of Tk 0.27 per share for July-September 2019. The consolidated EPS was Tk 1.35 for January-September 2020 as against Tk. 0.24 for January-September 2019.

Trust Bank reported consolidated EPS of Tk 2.08 for July-September 2020 as against Tk 0.88 for July-September 2019. The bank's consolidated EPS was Tk 4.08 for January-September 2020 as against Tk 2.57 for January-September 2019.

Pubali Bank has reported consolidated EPS of Tk 1.50 for July-September 2020 as against Tk 0.56 for July-September 2019. The consolidated EPS was Tk. 2.94 for January-September 2020 as against Tk. 2.72 for January-September 2019.

The EPS of Dutch-Bangla Bank marginally declined for July-September, 2020 against same period of previous. But the bank's EPS advanced for nine months of 2020.

The bank's EPS was Tk. 2.35 for July-September, 2020 as against Tk. 2.64 for July-September, 2019, while the EPS was Tk. 6.29 for January-September, 2020 as against Tk. 6.11 for January-September, 2019.

BRAC Bank has reported its consolidated EPS of Tk 1.13 for July-September 2020 as against Tk 0.64 for July-September 2019. The consolidated EPS was Tk 2.01 for January-September 2020 as against Tk 2.52 for January-September 2019.

Islami Bank Bangladesh reported its consolidated EPS of Tk 0.36 for July-September 2020 as against Tk 0.14 for July-September 2019. The bank's consolidated EPS was Tk 2.30 for January-September 2020 as against Tk 2.19 for January-September 2019.

First Security Islami Bank posted consolidated EPS of Tk 0.51 for July-September 2020 as against Tk 0.32 for July-September 2019. The bank's consolidated EPS was Tk. 1.33 for January-September 2020 as against Tk 1.18 for January-September 2019.

Mercantile Bank has reported consolidated EPS Tk 0.65 for July-September, 2020 as against Tk 0.46 for July-September, 2019. The consolidated EPS declined to Tk 1.72 for January-September, 2020 from Tk 2.25 for January-September, 2019.

United Commercial Bank (UCB) has posted an EPS of Tk 0.73 for July-September 2020 as against Tk. 0.70 for July-September 2019. The bank's consolidated EPS, however, declined to Tk 1.45 for January-September 2020 from Tk 1.70 for January-September 2019.

Southeast Bank reported its consolidated EPS of Tk 0.75 for July-September, 2020 as against Tk. 0.58 for July-September, 2019.

The bank's consolidated EPS was Tk. 2.39 for January-September, 2020 as against Tk. 2.82 for January-September, 2019. AB Bank has reported consolidated EPS of Tk 0.11 for July-September 2020 as against Tk. 0.03 for July-September 2019.

Bank Asia has reported consolidated EPS of Tk 0.60 for July-September 2020 as against Tk 0.88 for July-September 2019. The bank's consolidated EPS marginally rose to Tk 1.97 for January-September 2020 as against Tk 1.94 for January-September 2019.

EPS of Mutual Trust Bank (MTB) declined for July-September, 2019-20 compared to same period of the previous year.

The MTB reported consolidated EPS of Tk 0.21 for July-September 2020 as against Tk 0.45 for July-September 2019. The consolidated EPS was Tk 1.68 for January-September 2020 as against Tk. 1.67 for January-September 2019.

The consolidated EPS of Shahjalal Islami Bank was Tk 0.49 for July-September 2020 as against Tk 0.28 for July-September 2019.

Of other banks whose EPS rose marginally, Dhaka Bank has reported consolidated EPS of Tk 0.52 for July-September, 2020, while Premier Bank reported Tk 0.54 and Prime Bank Tk 0.45, One Bank 0.24.

Of the banks whose EPS declined for July-September, 2020 compared to same period of previous year are IFIC, Social Islami Bank, NCC Bank, National Bank, and Rupali Bank.

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