Written by editor
Correspondant editor
The Banking Post | June 6, 2025
DHAKA – Against a backdrop of soaring non-performing loans (NPLs) and liquidity shortages, five Bangladeshi banks have delivered exceptional financial performances in 2024. Standard Chartered Bangladesh (SCB), BRAC Bank, City Bank, Pubali Bank, and Prime Bank shattered profit records, collectively demonstrating resilience through strategic diversification, digital innovation, and disciplined risk management. SCB’s unprecedented net profit of Tk 3,300 crore – the highest in Bangladesh’s banking history – anchors this elite group, while Prime Bank’s 54% net profit surge highlights the growth potential of well-managed local institutions .
2024 Financial Performance Highlights
Table: Profitability & Growth Metrics
| Bank | Operating Profit (2024) | YoY Δ OP | Net Profit (2024) | YoY Δ NP | Key Strengths |
|---|---|---|---|---|---|
| Standard Chartered | Tk 5,506 crore | +28.25% | Tk 3,300 crore | +41% | Global connectivity, treasury gains |
| BRAC Bank | Tk 2,400 crore | +72% | Tk 1,432 crore | +73% | SME dominance, digital reach |
| City Bank | Tk 2,287 crore | +69% | Tk 1,014 crore | +59% | Consumer banking, liquidity |
| Pubali Bank | Tk 2,375 crore | +55% | Tk 780 crore | +12% | Deposit mobilization |
| Prime Bank | Tk 1,426 crore | +52% | Tk 745 crore | +54% | Treasury investments, dividends |
* Inferred from SCB’s benchmark; all surpassed Tk 2,000 crore operating profit except Prime Bank .
Financial Strength & Star Ratings
We evaluate each bank on capital adequacy, asset quality, innovation, governance, and regional competitiveness (5★ = exceptional):
- Standard Chartered Bangladesh (5★)
- Profit Drivers: 41% net profit surge to Tk 3,300 crore, fueled by 33% rise in net interest income (Tk 2,717 crore) and Tk 1,799 crore from government securities .
- Resilience Metrics: CRAR at 43.33% (vs. 12.5% regulatory minimum); NPL ratio 2.75% (industry avg: 20.2%) .
- Weakness: Limited retail penetration due to corporate-focused model.
- BRAC Bank (4.5★)
- Profit Drivers: Net profit of Tk 1,432 crore – highest among local peers .
- Resilience Metrics: CRAB AAA rating; leadership in SME financing with superior asset quality.
- Weakness: Moderate capitalization (Moody’s B2) restricts expansion.
- City Bank (4★)
- Profit Drivers: Crossed Tk 2,287 crore operating profit in 2023; 2024 growth driven by digital transformation .
- Resilience Metrics: Strong liquidity; high government securities holdings.
- Weakness: Corporate loan concentration risks.
- Pubali Bank (4★)
- Profit Drivers: Attracted Tk 8,500 crore deposits during 2024’s liquidity crunch .
- Resilience Metrics: Robust governance and service innovation.
- Weakness: High NPL provisions squeezed net profits.
- Prime Bank (3.5★)
- Profit Drivers: 54% net profit jump to Tk 745 crore; operating profit up 52% to Tk 1,426 crore .
- Resilience Metrics: CRAR 17.37% (above industry avg); Tk 693 crore treasury gains (+83% YoY) .
- Weakness: Low digital penetration; 71% drop in operating cash flow .
Future Opportunities & Threats
Growth Catalysts
- Digital Banking: With 24 crore mobile financial accounts in Bangladesh, City Bank and BRAC Bank’s AI-driven platforms could capture SME lending markets .
- Green Finance: Prime Bank’s AA1/ST-1 rating (CRAB) positions it to lead climate-resilient project financing .
- Treasury Gains: Rising interest rates (12.4% on 5-year bonds) will amplify profits for banks like SCB and Prime Bank .
Systemic Risks
- NPL Contagion: Sector-wide NPLs at 20.2% threaten spillover even to top performers .
- Liquidity Crunch: High deposit competition could erode margins.
South Asian Comparison: Bridging the Gap
Table: Regional Benchmarking (2024)
| Metric | Top Bangladeshi Banks | Indian Peers (HDFC) | Singaporean Peers (DBS) |
|---|---|---|---|
| Avg. ROA | 0.8–1.2% | 1.9% | 1.3% |
| Avg. ROE | 10–12% | 16.7% | 17% |
| Digital Spend | <0.1% of income | 2–3% | 20% |
| NPL Ratio | 2.75–8%* | 1.2% (HDFC) | 1.1% (DBS) |
* Excluding SCB’s outlier 2.75%; industry avg: 20.2% .
- Profitability Gap: SCB’s ROE (est. 18%) rivals DBS, but local peers lag due to higher funding costs .
- Scale Disparity: HDFC’s $483 billion assets dwarf BRAC Bank’s ~$10 billion.
Strategic Recommendations
- Scale Green Finance: Prime Bank and BRAC Bank should issue green bonds to fund the RMG sector’s renewable shift .
- Adopt Open Banking: Integrate mobile financial accounts to serve 75% of unbanked adults .
- Boost Digital Investment: Increase tech spending to 2% of income (vs. current <0.1%) to match DBS’s capabilities .
The Verdict
As SCB CEO Naser Ezaz Bijoy notes, “Prudent risk management and efficient liquidity deployment” fueled their historic Tk 3,300 crore profit . While SCB’s multinational leverage sets a high bar, Prime Bank’s 54% profit surge proves local banks can thrive via treasury expertise and governance. Yet to sustainably compete with regional giants like HDFC, all five must slash NPLs, digitize operations, and unlock green finance – turning Bangladesh’s banking crisis into a catalyst for transformation.
— With data from Bangladesh Bank, S&P Global, and bank disclosures.
