Exim Bank of Bangladesh PLC announced a significant loss of Tk 566 crore for the July-September quarter, primarily due to declining deposits and reduced retained earnings.
The bank's consolidated loss per share reached Tk 3.91, a stark decline from the Tk 0.37 earnings per share reported in the same quarter of the previous year.
This disappointing performance led to a notable market reaction, with Exim Bank shares dropping 9.64 percent to Tk 7.5 on the Dhaka Stock Exchange as of 12:06 pm.
Management attributed the earnings decline to increased provisions for investments, while cash flow issues exacerbated the situation. The bank's net operating cash flow per share (NOCFPS) for January-September 2024 fell to a negative Tk 16.62.
The drop in NOCFPS was largely driven by heightened investments in customers and a decrease in deposits. Furthermore, the bank's net asset value per share deteriorated due to lower retained earnings compared to the previous period.
Founded in 1999, Exim Bank transitioned to Shariah-based banking in 2004, focusing on corporate, cottage, micro industries, and agricultural finance.