Islami Bank Bangladesh PLC, a listed bank, has reported a massive net loss of Tk 3,303 crore after tax in the first nine months of 2026, compared to a net profit of nearly Tk 79 crore during the same period last year.

The bank also posted a net loss of Tk 1,976 crore in the July-September quarter of the 2026-27 financial year, according to its unaudited financial statements approved at the 414th meeting of its board of directors on Thursday.

The huge losses significantly affected the bank’s earnings per share (EPS). On a standalone basis, its EPS stood at a negative Tk 20.51 for January-September, against earnings of Tk 0.49 in the corresponding period last year. On a consolidated basis, EPS fell to negative Tk 20.41 from positive Tk 0.62.

For the July-September quarter alone, standalone EPS was negative Tk 12.27, compared to positive Tk 0.15 a year earlier. Consolidated EPS also declined to negative Tk 12.24 from positive Tk 0.20.

The bank’s net asset value (NAV) also declined sharply amid the mounting losses. As of September 30, its standalone NAV stood at Tk 3,584 crore, down from Tk 6,963 crore a year earlier. Consolidated NAV dropped to Tk 3,806.05 crore from Tk 7,161.06 crore.

Consequently, standalone net asset value per share (NAVPS) fell to Tk 22.27 from Tk 43.25, while consolidated NAVPS declined to Tk 23.64 from Tk 44.48.

The bank also experienced a significant deterioration in operating cash flow. Its standalone net operating cash flow per share (NOCFPS) turned negative at Tk 36.54 during the first nine months, compared to a positive Tk 11.89 in the same period last year. On a consolidated basis, NOCFPS fell to negative Tk 36.12 from positive Tk 12.44.

According to the board meeting documents, the losses were primarily driven by a substantial decline in investment income, particularly due to a high volume of non-performing investments, alleged fund embezzlement by influential groups and the lack of returns from those investments. Meanwhile, the bank’s profit expenses on deposits increased significantly.

The report also highlighted the bank’s troubled history following its takeover by the Chattogram-based S Alam Group in 2017. The group allegedly withdrew nearly Tk 1 lakh crore from the bank through various means, much of which subsequently turned into defaulted investments.

After the fall of the government on August 5, 2024, the group lost control of the bank. An independent board was subsequently appointed during the interim government, while Bangladesh Bank is currently overseeing its operations.