B Mirror Report:  National Credit and Commerce (NCC) Bank PLC has maintained additional provisions in line with Bangladesh Bank’s directives, according to its audited financial statements for the year ended December 31, 2025.

The bank’s auditor, Mahfel Huq & Co. Chartered Accountants, included an “Emphasis of Matter” paragraph in the audit report, highlighting specific issues in the financial statements. However, the auditor clarified that these matters did not require any modification to the audit opinion.

In the report, audit partner Wasekul H. Regan, FCA, said NCC Bank complied with Bangladesh Bank’s letter No. BSD-4 (Wing-3)/3201/2026-234 dated April 23, 2026, by maintaining the required provisions. The report also explained the reasons behind the restatement of certain financial figures and their impact on earnings per share (EPS), as disclosed in Notes 2.1(a) and 15.4.1.

According to Note 15.2, provisions against “other assets” increased significantly to Tk 98.76 crore in 2025 from Tk 57.92 crore a year earlier. Although the external auditor raised no objections regarding Exim Bank’s MTDR exposure, NCC Bank set aside Tk 4.77 crore as provision against accrued interest on the MTD balance under other assets.

The bank’s total provisions stood at Tk 1,256.78 crore at the end of 2025. This included Tk 565.58 crore in specific provisions against classified loans, Tk 451.49 crore in general provisions against unclassified loans, Tk 130.73 crore against off-balance-sheet items, and Tk 18.08 crore for its offshore banking unit.

The report further noted that the bank maintained Tk 507.92 crore in provisions against written-off exposures and an additional Tk 134.15 crore in provisions in compliance with Bangladesh Bank instructions.

NCC Bank also restated its previous year’s financial statements following a reassessment of advances, deposits and prepaid expenses under other assets and related deferred tax liabilities. As a result, its 2024 EPS was revised upward to Tk 3.94 from the previously reported Tk 2.09.

Similarly, the bank’s net asset value (NAV) per share for 2024 was revised to Tk 24.20 from Tk 22.24, while the 2023 NAV was restated to Tk 22.72 from Tk 21.70.

Regarding deferred taxes, NCC Bank’s total deferred tax liabilities rose to Tk 140.64 crore in 2025 from Tk 127.24 crore in 2024. Deferred tax assets also increased to Tk 292.54 crore from Tk 252.14 crore over the same period.

Consequently, the bank’s net deferred tax assets climbed to Tk 151.89 crore, up from Tk 124.90 crore in the previous year. The bank also recognised Tk 26.99 crore as deferred tax income in its profit and loss account during 2025.

Despite highlighting these matters, the auditor reaffirmed that the issues had no impact on the audit opinion, and the opinion on the financial statements remains unchanged.