City Bank (CITYBANK) investor relations material

Executive summary

• H1 2026 consolidated revenue rose 17.0% YoY to BDT 26,798 mn and profit after tax increased 74.9% to BDT 5,267 mn, supported by lower provisions and higher income.

• Operating profit grew 12.0% to BDT 14,452 mn as operating costs rose 23.4%; cost-to-income ratio increased to 46.1% from 43.7%.

• Loans and deposits grew 8.4% and 15.6% YTD, respectively, while capital adequacy remained above the regulatory minimum.

Financial highlights

• Consolidated H1 revenue was BDT 26,798 mn, up 17.0% YoY; solo revenue was BDT 26,198 mn, up 16.9%.

• Net interest income rose 17.1% to BDT 2,237 mn; investment income increased 15.5% to BDT 19,107 mn, and commission, exchange and brokerage income rose 24.1% to BDT 5,288 mn.

• Operating profit increased 12.0% to BDT 14,452 mn; profit before tax rose 53.4% to BDT 9,709 mn and profit after tax rose 74.9% to BDT 5,267 mn.

• Provision charge declined 27.8% YoY to BDT 4,743 mn; taxation rose 33.8% to BDT 4,442 mn.

• Q2 consolidated net profit was BDT 2.86bn versus BDT 2.09bn YoY; quarterly EPS was BDT 1.63 versus BDT 1.19.

Outlook and guidance

• Management targets a 45% CASA ratio by year-end 2026 from 42%; retail represented 64% of deposits, with technology expected to support growth.

• Management targets $10bn in trade volume this year and expects credit growth across corporate, medium, micro, small and retail segments; lending growth will remain measured where demand is weak.

• Digital lending, small and microfinance, retail lending and cards are priority growth areas; a digital bank is in development and AI capabilities are being explored.

• Bangladesh Bank projects FY27 inflation at 7.5% and lowered its private-sector credit growth target to 6.8% by Dec 2026; sustainable-finance plans include a green bond.