Exim Bank posts highest EPS riseMost banks' EPS up in Jan-Sept

FT ONLINE

The consolidated earnings per share (EPS) of most of the listed banks rose in nine months for January-September, 2019 compared to that of the same period last year.

Market analysts said most of the banks' earnings soared in January-September 2019, due to an increase in operating profit and decrease of required provision against loans and advances.

A merchant banker, however, said the banking sector remained volatile with ongoing liquidity crunch, soaring interest rates coupled with huge non-performing loans that affect the banks' profitability.

EPS is the portion of a company's profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company's profitability.

Out of the 30 listed banks, 26 have so far disclosed their earnings for January-September, 2019 period until Wednesday. Of them, the consolidated EPS of 19 banks rose while seven saw their EPS fall, according to the un-audited financial statements.

The EPS of banks whose EPS rose are Exim Bank, IFIC Bank, First Security Islami Bank, Jamuna Bank, Dutch-Bangla Bank, Dhaka Bank, City Bank, Bank Asia, Eastern Bank, Islami Bank, Mercantile Bank, Mutual Trust Bank, Premier Bank, Shahjalal Islami Bank, Southeast Bank, Standard Bank, Trust Bank, UCB and Uttara Bank.

The Exim Bank posted the highest EPS increase -- 300 percent to Tk 0.44 in January-September 2019, which was Tk 0.11 in the same period in the previous year, according to data available with the DSE.

The bank noted that earnings per share increased mainly due to an increase in operating income and a decrease in provisions for diminution in the value of shares.

However, the consolidated EPS was negative Tk 0.12 for July-September 2019 as against negative Tk 0.02 for July-September, 2018.

The consolidated EPS of IFIC Bank witnessed a 168 percent rise to Tk 1.45 for January-September, 2019 which was Tk 0.54 in the same period last year.

First Security Islami Bank's EPS also climbed 145 percent to Tk 1.30 in nine months for January-September, 2019, which was Tk 0.53 in January-September of 2018.

The consolidated EPS of Trust Bank also jumped 66 percent to Tk 2.70 for January-September, 2019 compared to the same quarter a year ago.