The private sector lender ONE Bank posted a net profit after tax of Tk127.97 crore in 2024, an 11.30% increase in earnings. However, its external auditor claims that if the bank had made full provisioning as required by the central bank, it would have actually suffered a huge net loss of Tk995.43 crore.
According to the auditor’s qualified view, the bank had Tk1,447.62 crore in total reserves as of December 2024, which included Tk53.81 crore for unclassified loans and Tk1,393.81 crore for classified loans and advances.
A instruction from the Bangladesh Bank dated April 29, 2024, said that Tk3,345.07 crore was needed as a contingency against loans and advances. This resulted in a Tk1,797.45 crore deficiency that the bank failed to account for in its financial statements.
The shortfall’s non-recognition was authorized by a letter from Bangladesh Bank dated 21 May 2024, which permitted the bank to postpone the necessary provision.
The auditor indicated that if the complete provision had been acknowledged without delay, the bank would have shown a net loss after tax of Tk995.43 crore. In such a scenario, the loss per share would have amounted to Tk9.34, and the net worth would have decreased to Tk1,223.29 crore – in contrast to the reported earnings per share (EPS) of Tk1.20 and total net worth of Tk2,345.41 crore.
The considerable disparity between the reported profit and actual financial responsibilities raises questions regarding transparency and the bank’s genuine financial condition, as noted by market analysts. Efforts to reach the bank’s secretary, John Sarkar, for a statement were unsuccessful, as he did not return the call.
The bank’s share price settled at Tk6.90 on the Dhaka Stock Exchange on Thursday.
In spite of the ongoing financial difficulties, the Board of Directors has sanctioned the issuance of ONE Bank Subordinated Bond VI, which will feature a floating interest rate. This issuance is contingent upon approval from the appropriate regulatory bodies. The bank intends to generate Tk600 crore through a private placement of this bond, which will have a duration of seven years.
The funds raised from this bond will be categorized as Tier-II Capital. This initiative is designed to bolster the bank’s capital foundation in accordance with Bangladesh Bank’s Risk-Based Capital Adequacy Guidelines, which are in line with the Basel III regulatory framework.
In 2024, ONE Bank’s net interest income increased to Tk608 crore, up from Tk452 crore the previous year. In the first quarter (January to March) of 2025, the private sector lender reported a net profit of Tk64 crore, compared to Tk41 crore during the same period the previous year. However, the bank’s net interest income in Q1 2025 fell to Tk78 crore, down from Tk130 crore in the corresponding quarter of the previous year.
Additionally, the bank’s earnings per share (EPS) rose from Tk0.38 to Tk0.60 during the same time last year. At the close of March 2025, the net asset value per share was Tk22.32. ONE Bank had 112 branches as of December 31, 2024, including two Islamic banking branches. In addition, the bank operated 177 ATMs, 19 collection booths, and 45 sub-branches nationwide.
Furthermore, the bank had two offshore banking facilities, one in Chattogram and one in Dhaka. Additionally, ONE Securities Limited and ONE Investments Limited are subsidiaries of ONE Bank.
