Senior Correspondent:
SBAC Bank Plc, a prominent banking service provider in Bangladesh’s banking sector, released its unaudited financial report for the first quarter of 2024 (January-March). The report, reviewed and approved by the bank’s board recently, reveals a mixed bag of results with growth in earnings per share (EPS) but a decline in cash flow per share.
The positive news for SBAC Bank lies in its consolidated EPS, which reached 24 paise for the first quarter of 2024. This represents a significant 20% increase compared to the 17 paise EPS reported for the same period in 2023. This growth in EPS indicates the bank’s profitability is improving, suggesting a potentially strong year ahead.
However, the report also highlights a potential area of concern – cash flow. The bank’s consolidated cash flow per share for Q1 2024 was negative at Tk 1.72. While this is an improvement compared to the negative Tk -0.43 reported in Q1 2023, a negative cash flow signifies that the bank’s operating expenses are exceeding its cash inflows. This could raise questions about the bank’s short-term liquidity and its ability to meet future obligations.
The report also includes the bank’s consolidated net asset value per share (NAVPS) as of March 31, 2024. This figure stood at Tk 13.84, indicating a relatively stable position compared to the previous year’s figures. NAVPS reflects the underlying value of a bank’s shares, and its stability suggests that SBAC Bank’s overall financial health remains sound.
The contrasting performance in EPS and cash flow might create uncertainty for investors. While the growth in EPS suggests improved profitability, the negative cash flow could raise concerns about the bank’s ability to sustain this growth. Investors will likely be looking for further details and clarifications from the bank’s management regarding its plans to improve cash flow and ensure long-term financial stability.
Overall, SBAC Bank’s Q1 2024 results present a mixed picture. The positive growth in EPS is encouraging, but the negative cash flow requires close attention. Investors and analysts will be keenly watching how the bank addresses this issue and its impact on future performance.
