City Bank (CITYBANK) Q2 2023 earnings summary

Executive summary

• Q2 2023 consolidated revenue rose 10.0% YoY to Tk13,561mn; operating profit increased 2.3% to Tk6,178mn and profit after tax rose 9.1% to Tk2,369mn.

• H1 2023 consolidated net profit after tax was Tk2.19bn, up from Tk2.06bn in H1 2022; consolidated EPS rose to Tk1.82 from Tk1.72.

• Consolidated total assets reached Tk574.03bn at 30 Jun 2023, versus Tk514.91bn at 31 Dec 2022; loans and advances rose to Tk401.04bn from Tk353.84bn.

• Loan growth and higher yields supported interest income and net interest income, while higher funding costs, provisions and weaker commission income constrained operating profit growth.

Financial highlights

• Q2 consolidated interest income increased 37.4% YoY to Tk15,959mn; interest expense rose 47.8% to Tk8,556mn; net interest income increased 27.0% to Tk7,403mn.

• Q2 investment income rose 24.2% YoY to Tk2,135mn; commission, exchange and brokerage income fell 20.1% to Tk3,098mn; other income increased 2.4% to Tk925mn.

• Operating costs increased 17.4% YoY to Tk7,383mn; consolidated cost-to-income ratio was 54.4%, versus 51.0% in Q2 2022.

• Q2 profit before tax decreased 2.9% YoY to Tk4,609mn; tax expense fell 13.0% to Tk2,239mn, contributing to 9.1% growth in profit after tax.

• H1 consolidated operating income was Tk13.56bn, compared with Tk12.34bn in H1 2022; net operating cash flow was Tk1.48bn, versus an outflow of Tk8.09bn.

Outlook and guidance

• Results exceeded internal estimations for 2023 despite higher deposit rates, inflation and global uncertainty; no specific forward targets were stated.