City Bank (CITYBANK) investor relations material

Executive summary

• Consolidated 9M profit after tax rose 20.1% YoY to BDT 8.674bn; revenue increased 14.3% to BDT 41.638bn.

• Loans grew 7.8% YTD and consolidated deposits rose 22.5% amid subdued credit demand and tight liquidity.

Financial highlights

• Consolidated operating profit rose 8.9% YoY to BDT 22.750bn; profit before tax increased 25.8% to BDT 15.152bn.

• 9M interest income was BDT 42.551bn vs. BDT 40.259bn; investment income was BDT 30.018bn vs. BDT 27.753bn.

• Operating costs increased 21.7% to BDT 18.888bn; cost-to-income ratio rose to 45.4% from 42.6%.

• Consolidated provision charge declined 14.2% YoY to BDT 7.597bn; loan and investment provisions were BDT 6.887bn vs. BDT 8.548bn.

• Taxation rose 34.4% to BDT 6.479bn; provision expense included BDT 4.51bn of additional general provisions.

Outlook and guidance

• Management expects FY profit to exceed last year's BDT 13.26bn, citing stronger Q4 earnings; no specific full-year forecast was given.

• Policy rates are expected to remain unchanged or decline over the next 6–9 months if inflation and fuel-price conditions do not worsen; deposit funding costs are expected to ease while maintaining the 4.9% spread.

• Year-end targets include NPL below 3% and provision coverage near 120%; Blink, QR and digital-lending initiatives are planned for year-end or early next year.

• Bangladesh Bank lowered its private-sector credit growth target to 6.8% by Dec 2026 amid sluggish demand and cautious lending.