Written by The Banking Post
AB Bank has reported a record loss of Tk 15.03 billion for the April–June quarter of 2025, marking the steepest loss among all listed banks and shocking investors who had seen the bank post a marginal profit of Tk 36 million during the same period last year.
The latest loss brings the bank’s total loss for the first half of 2025 to Tk 17.58 billion—almost equal to the Tk 19 billion loss it incurred in the entire year of 2024. This sharp deterioration has exceeded the losses of even crisis-hit Shariah-based banks currently facing forced mergers due to liquidity issues.
The bank’s financial downfall stems from a massive surge in non-performing loans (NPLs), following the political transition in August last year. Once appearing profitable, AB Bank’s asset quality unraveled rapidly in the second half of 2024, revealing the extent of its deteriorating loan book.
Company Secretary Md Jasim Uddin revealed that 83 per cent of the bank’s total loans have turned bad. “We’re not earning interest from these loans, but we’re paying hefty interest on deposits. On top of that, we’ve had to set aside large provisions for NPLs,” he said, adding that rising overhead costs further worsened the situation.
The bank also missed opportunities to invest in high-yield government securities due to its acute liquidity crunch.
The Dhaka Stock Exchange (DSE) reacted swiftly to the disclosure. AB Bank’s share price dropped from Tk 7.10 to Tk 6.80 before closing at Tk 7.00 on Sunday. A deeper fall was likely avoided thanks to the broader market rally that lifted the DSEX index to a 10-month high.
AB Bank’s net asset value (NAV) per share stood at negative Tk 12.33 as of June, meaning the bank’s liabilities now exceed its assets—a red flag for regulators and investors alike.
