City Bank (CITYBANK) Q3 2023 earnings summary

Executive summary

• 9M 2023 consolidated revenue rose 11.5% YoY to BDT 20,483mn; profit after tax increased 14.7% to BDT 3,790mn, while profit before tax was nearly flat at BDT 7,047mn.

• Consolidated assets reached Tk 549.8bn at 30 Sep 2023, up from Tk 514.9bn at year-end 2022; loans and advances rose to Tk 392.0bn from Tk 356.3bn.

Financial highlights

• Consolidated interest income rose 33.5% YoY to BDT 24,590mn and net interest income increased 26.3% to BDT 11,484mn.

• Investment income grew 21.9% to BDT 3,276mn; commission, exchange and brokerage income declined 17.6% to BDT 4,313mn.

• Consolidated operating costs rose 16.9% to BDT 11,163mn, while the cost-to-income ratio improved to 52.0% from 54.5%; tax expense fell 13.9% to BDT 3,256mn.

• Standalone 9M net profit increased to Tk 3.60bn from Tk 3.12bn; EPS rose to Tk 2.94 from Tk 2.54.

Outlook and guidance

• Management said Q3 results exceeded 2023 estimates despite higher deposit rates, inflation and global uncertainty.

• Loan growth of 10.0% YTD reflected a prudent plan focused on steadier risk-return management.