Islami Bank reports Tk 32.86bn in losses over nine months

Islami Bank has reported a total loss of Tk 32.86 billion in the first nine months of the current fiscal year, with the drop increasing in each quarter.

The private-sector bank disclosed its unaudited financial results for January to September to the Dhaka Stock Exchange (DSE) on Sunday.

Its earnings per share (EPS) stood at a negative Tk 20.41 during the period.

In the same period last year, the bank reported a profit of Tk 0.62 per share, with a total net profit of Tk 998 million.

According to DSE data, the bank has 1,609,990,668 shares. Based on its earnings per share, its total loss over the nine months totalled Tk 32.86 billion.

The bank's losses increased each quarter. It recorded a decline of Tk 1.79 per share in the January-March quarter, Tk 6.39 in April-June and Tk 12.24 in July-September.

The latest quarter alone accounted for a loss of Tk 19.71 billion.

In the corresponding period last year, the bank had reported a profit of Tk 0.20 per share.

The losses have also reduced the bank's net asset value (NAV) per share.

At the end of September, it stood at Tk 23.64, down 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 in 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 level of non-performing loans, large sums of investment funds allegedly siphoned off by parties associated with the bank, and a sharp decline in deposit inflows during the latest quarter.

Rising interest expenses on deposits have added to the losses and contributed to the negative cash flow, the bank said.