Exim Bank suffers a massive Tk 566 crore loss in Q3

Exim Bank of Bangladesh PLC reported a staggering Tk 566 crore loss for the July-September quarter, as declining deposits and retained earnings plummeted its earnings.

The bank's consolidated loss per share hit Tk 3.91, a sharp downturn from the Tk 0.37 earnings per share it posted in the same period last year, according to a disclosure on the Dhaka Stock Exchange website.

This poor performance triggered a strong market reaction, with Exim Bank shares plunging 9.64 percent to Tk 7.5 as of 12:06 pm on the DSE floor. 

The bank attributed the earnings drop to a spike in provisions for investments.

Cash flow challenges compounded Exim Bank's difficulties, as its net operating cash flow per share (NOCFPS) for January- September 2024 registered a negative Tk 16.62. 

The decline in NOCFPS was primarily due to increased investments in customers and a fall in deposits.

Additionally, the bank's net asset value per share weakened, driven by reduced retained earnings compared to the prior period.

Exim Bank was founded in 1999, and it transitioned to Shariah-based banking in 2004, positioning itself as a key player in corporate, cottage and micro industries, and agricultural finance.