City Bank (CITYBANK) Q2 2025 earnings summary

Executive summary

• H1 consolidated revenue rose 24.1% to BDT 22,779mn and net profit after tax increased 20.7% to BDT 3,011mn; solo revenue grew 25.0%.

• Loans grew 13.0% YTD and deposits 17.2%; sharply higher funding costs and provisions constrained earnings growth.

• Higher investment income from government securities partly offset compressed net interest income and higher operating costs.

Financial highlights

• Interest income rose 28.6% to BDT 26,437mn, while interest expense climbed 98.5% to BDT 24,656mn; net interest income fell 78.1% to BDT 1,781mn.

• Investment income increased 192.6% to BDT 16,540mn; operating costs rose 23.8% to BDT 9,878mn.

• Operating profit grew 24.4% to BDT 12,901mn; profit before tax rose 5.7% to BDT 6,331mn and tax expense fell 5.1% to BDT 3,320mn.

• H1 consolidated assets totaled BDT 789.116bn, up from BDT 709.559bn at 31 December 2024.

Outlook and guidance

• Management expects deposit costs to ease as policy rates decline, potentially widening the spread; investment returns remain dependent on Central Bank policy.

• Management cited a prudent growth plan focused on sustainable loan growth and value creation; asset quality may improve as customers adapt to shorter repayment classification periods.

• Bangladesh Bank targeted inflation of 7% by August 2025 and 5% by year-end; June point-to-point inflation was 8.48%.

• GDP was cited at ~4%, with growth of 5.5%–6% viewed as possible as macro conditions normalize.