Islami Bank posts Tk 32.86 billion loss in first nine months

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Islami Bank Bangladesh has reported a net loss of Tk 32.86 billion in the first nine months of the year, with its financial performance deteriorating in each successive quarter.

The private-sector bank disclosed its unaudited financial results for January–September to the Dhaka Stock Exchange (DSE) on Sunday. Its earnings per share (EPS) stood at a negative Tk 20.41 during the period.

By comparison, the bank earned Tk 0.62 per share during the same period last year, recording a net profit of Tk 998 million.

Based on the bank’s 1,609,990,668 outstanding shares, the negative EPS translates into a total loss of approximately Tk 32.86 billion over the nine months.

The bank’s quarterly losses continued to widen. Its EPS declined by Tk 1.79 in January–March, Tk 6.39 in April–June and Tk 12.24 in July–September.

The July–September quarter alone accounted for a loss of Tk 19.71 billion. In the corresponding quarter last year, the bank had reported a profit of Tk 0.20 per share.

The deteriorating performance has also affected the bank’s net asset value (NAV) per share, which fell to Tk 23.64 at the end of September from Tk 44.52 in December.

Meanwhile, net cash flow per share turned negative at Tk 36.12, compared with a positive Tk 12.44 during the same period last year.

The bank attributed its worsening financial position partly to a lack of returns from investments. It also cited a high volume of non-performing loans, funds allegedly siphoned off by parties associated with the bank and a sharp decline in deposit inflows during the latest quarter.

Higher interest expenses on deposits further contributed to the losses and negative cash flow, the bank said.