City Bank (CITYBANK) Q1 2023 earnings summary

Executive summary

• Consolidated Q1 revenue rose 11.5% YoY to BDT 6,623 mn; net profit was BDT 893.8 mn versus BDT 883.2 mn, and EPS remained BDT 0.74.

• Loan growth and higher lending yields supported earnings, while deposit costs, operating expenses and inflation pressured results.

• Consolidated assets were Tk 542.6bn at 31 March 2023, up from Tk 514.9bn at 31 December 2022.

Financial highlights

• Consolidated interest income increased 46.7% YoY to BDT 7,739 mn; interest expense rose 63.8% to BDT 4,238 mn.

• Consolidated operating profit was BDT 2,996 mn, up 0.9%; profit before tax rose 5.8% to BDT 2,163 mn.

• Consolidated expenses increased 22.1% YoY to BDT 3,627 mn; staff expense rose 20.6% and other operating expenses 24.1%.

• Provision charge declined 10.1% to BDT 833 mn, while taxation increased 9.4% to BDT 1,269 mn.

• Solo revenue grew 14.4% YoY to BDT 6,388 mn and operating profit rose 12.8%; subsidiary performance moderated consolidated growth.

Outlook and guidance

• A prudent lending plan targeted 10% loan growth with a steadier, more vigilant risk-return structure; loans increased 10.0% YTD.

• Results exceeded 2023 estimates despite higher deposit rates, inflation and global uncertainty.

• Recovery efforts across business segments and additional provisions aimed to contain NPLs and limit further slippages during 2023.