The bank’s main source of income is interest from loans that are issued. Interest paid on customer deposits, on the other hand, is the biggest expense. As is usually the case, income should exceed interest costs, but Midland Bank is an exception. In the first half of this year, which ran from January to June, the bank’s expenses were higher than its interest revenue.

In the first half of this year, the bank’s interest income from loans amounted to 348 crore 74 lakh taka. In contrast, the interest expenses related to customer deposits reached 389 crore 25 lakh taka. This resulted in expenses being 40 crore 51 lakh taka higher than income, indicating that the bank is falling short in its primary revenue source.

As a result, the bank’s operations in the first half of this year have experienced a significant downturn. The net profit, which was 28 crore 54 lakh taka in the first half of the previous year, has decreased to 11 crore 88 lakh taka this year. Additionally, the profit per share has dropped from 0.43 taka to 0.18 taka, reflecting a decline of 58%.

Beyond the fact that expenses have outstripped interest income, another contributing factor to this decline is the rise in savings. The bank’s savings expenses were Tk 566 million in the first half of the previous year, but they surged to Tk 111 million in the first half of this year, marking an increase of Tk 552 million or 98%.

Nevertheless, the bank would have reported a loss had it not seen an increase in income from investments. The income from investments in the first half of the previous year was Tk 105 million, while in the first half of this year, it rose to Tk 209 million. This indicates an increase of Tk 103 million or 98% in investment income.

The bank’s management informed the DSE that the decline in business is attributed to lower income generated in the first half of this year compared to the same period last year.