City Bank (CITYBANK) Q1 2024 earnings summary

Executive summary

• Consolidated revenue rose 21.5% YoY to BDT 8,044mn and operating profit rose 36.5% to BDT 4,091mn; net profit after tax increased 3.4% to Tk 924.5mn.

• Consolidated assets reached Tk 600.4bn at Mar 31, 2024, versus Tk 564.9bn at Dec 31, 2023; loans grew 3.9% YTD and deposits 7.5% YTD.

Financial highlights

• Consolidated interest income rose 22.6% YoY to BDT 9,488mn; interest expense grew 28.4% to BDT 5,443mn, taking net interest income up 15.5% to BDT 4,045mn.

• Investment income rose 85.4% YoY to BDT 1,901mn, supported by higher government-security holdings and gains; operating expenses rose 9.0% to BDT 3,953mn.

• Profit before tax increased to Tk 2.44bn from Tk 2.16bn; tax provision rose to Tk 1.51bn from Tk 1.27bn.

• Higher average loan volumes and SMART-rate yield adjustments supported interest income; deposit growth and market-driven rates on long-term deposits increased interest expense.

• Solo revenue grew 22.5% YoY to BDT 7,823mn; standalone net profit was Tk 908.5mn versus Tk 831.5mn, with EPS of Tk 0.74 versus Tk 0.68.

Segment performance

• Corporate loans represented 50% of the Q1 2024 portfolio; versus 2020, Small & Microfinance loans grew 171%, Retail 72% and Commercial 60%.

• City Brokerage operating income rose 80.9% YoY to BDT 121.8mn and operating profit increased 305.2% to BDT 74.7mn; profit after tax rose 88.7% to BDT 20.7mn.

• CBCRL operating income fell 66.5% YoY to BDT 29.8mn and operating profit fell 99.7% to BDT 0.2mn; it recorded a BDT 18.5mn loss after tax.