City Bank's Q1 profit surges 162%

City Bank PLC’s net profit more than doubled in the first quarter of 2026, though its top executive has warned of a worrying slowdown in credit growth across the banking sector.

The Dhaka-based lender’s profit after tax stood at Tk 241 crore in the January–March quarter, up from Tk 92 crore in the same period a year earlier — a rise of over 162 percent.

Its earnings per share climbed to Tk 1.6 from Tk 0.6, according to a press release.

“While I am happy with such a strong increase in profit, I am equally concerned about the sharp slowdown in credit growth in the first quarter,” said City Bank Managing Director and Chief Executive Officer Mashrur Arefin.

“The direction in which credit growth in our sector is heading is, quite frankly, a matter of great concern.”

The strong performance was driven primarily by growth across core income streams.

Interest income from loans rose 14 percent year-on-year to Tk 1,306 crore, while investment income grew more sharply, climbing from Tk 603 crore to Tk 1,014 crore, accounting for 32 percent of total operating income.

The bank’s fee and commission income rose 27 percent, led by foreign exchange earnings, card-related fees, and trade commissions.

City Bank’s total income grew more than 38 percent to Tk 1,338 crore. Expenses were contained at Tk 595 crore, pushing the cost-to-income ratio down to 44 percent from over 52 percent in Q1 2025.

Operating profit rose more than 61 percent to Tk 743 crore.

Improved asset quality also helped optimise provisioning levels, further supporting the bank’s bottom line.