City Bank’s Q1 profit jumps 162%

City Bank PLC reported a 162 percent year-on-year increase in net profit in the first quarter (Q1) of 2026, driven by robust growth in core banking income.

The bank’s profit after tax (PAT) rose to Tk 241 crore in the January-March period, up from Tk 92 crore a year earlier.

Earnings per share (EPS) also climbed to Tk 1.6 from Tk 0.6, reflecting improved returns for shareholders. Mashrur Arefin, managing director and CEO of the bank, welcomed the strong performance but flagged concerns over slowing credit growth.

“While I am happy with such a strong increase in profit, I am equally concerned about the sharp slowdown in credit growth in the first quarter,” he said.

“The direction in which credit growth in our sector is heading is, quite frankly, a matter of concern,” he added.

The bank’s performance was underpinned by solid gains in interest, investment, and fee-based income.

Interest income from loans grew 14 percent to Tk 1,306 crore from Tk 1,143 crore. Investment income surged to Tk 1,014 crore from Tk 603 crore, accounting for 32 percent of total operating income.

Fee and commission income also rose 27 percent, supported by higher foreign exchange earnings, card-related fees, and trade services.

Total income increased more than 38 percent to Tk 1,338 crore in the first quarter. Costs remained contained, with expenses at Tk 595 crore. As a result, the cost-to-income ratio improved to 44 percent, down from over 52 percent in the same period last year.

Operating profit jumped more than 61 percent to Tk 743 crore, compared to Tk 461 crore a year earlier.

Improved asset quality also helped optimise provisioning requirements, further supporting bottom-line growth, the bank said.