City Bank made Tk 638 crore profit in 2023

City Bank reported a consolidated net profit after tax of Tk 638 crore for the financial year 2023, which represented a 33.5 percent rise in net profit compared to the previous year.

Its profit stood at Tk 478 crore in the last fiscal year.

The bank made the disclosure at a board meeting held at its head office in Dhaka today.

The board recommended a 25 percent dividend, including a 15 percent cash dividend, for shareholders based on the superior financial performance, read a press release.

The recommendation will be presented for shareholder approval at the annual general meeting of the bank to be held on May 30.

The bank's foreign exchange income dropped by 74 percent compared to the previous year due to the foreign currency crisis in 2023.

However, the bank still reported an operating profit of Tk 1,391 crore, up from Tk 1,237 crore in 2022, as a result of containing its cost of deposit, growing its performing loan book, and earning substantially from its investments in government securities.

The net profit of Tk 638 crore resulted in an impressive 17.7 percent return on equity for City Bank in 2023.

One notable feature of the bank's earnings was that 26 percent of its total income came from fees and commissions, while 40 percent of that income was generated by its retail, cards, and small and micro lending businesses.

The bank's consolidated earnings per share stood at Tk 5.21, up from Tk 3.90 in 2022.

Its notable expansion across all business lines, together with its commitment to sustainable and environmentally-friendly goals and its focus on going fully digital, have garnered significant attention from investors worldwide in recent years.