National Bank’s losses reduced by 54pc in 2023
The bank incurred a loss of Tk 14.97b in 2023, as against Tk 32.61b in 2022
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National Bank Ltd, which is currently undergoing the process of merger with the United Commercial Bank, continued to suffer losses in 2023 owing to the waiver in interest due to rising non-performing loans and higher interest expenses on borrowings.
The private commercial bank incurred a loss of Tk 14.97 billion in 2023, which was 54 per cent lower than the previous year’s loss of Tk 32.61 billion in 2022.
Thus, the earnings per share stood at Tk (4.65) in 2023, down from Tk (10.13) in the year before, according to a disclosure on Sunday.
The bank’s consolidated net asset value per share stood at Tk 7.30 and consolidated net operating cash flow per share of Tk (1.84) for the year in 2023, as against, Tk 13 and Tk (17.21) respectively for 2022.
“The bank could not book interest on loans and advances due to non-recovery from defaulters,” said the bank in a filing on the Dhaka Stock Exchange (DSE) on Sunday.
Borrowers failed to repay instalments on time and became classified while the interest on such loans and advances could not be taken to the income segment of the balance sheet.
Moreover, the bank incurred higher interest expenses on borrowings. Consequently, the year concluded with an operating loss, with significant deviations observed in earnings per share, net asset value and net operating cash flow per share.
However, the new board and the new management are exerting the highest efforts to improve the bank's financial health by streamlining recovery drives and mobilising low-cost deposits and establishing good corporate governance, said the statement.
The bank has not provided any information regarding dividends, annual general meetings and record date for 2023, which is non-compliance of the Dhaka Stock Exchange (Listing) Regulations, 2015.
Despite losses, the share price surged 1.82 per cent to Tk 5.60 after two hours of trading on Sunday.
National Bank is currently undergoing the process of merging with the United Commercial Bank, according to the Bangladesh Bank.
Listed in 1984, the first-generation bank failed to declare a dividend for three consecutive years through 2023.