The audit report of listed Standard Bank PLC for 2025 has highlighted several major financial risks and irregularities, raising fresh concerns over the bank’s financial health.

In the “Emphasis of Matter” section of the audit report, the auditors disclosed significant provisioning shortfalls related to investments, off-balance sheet exposures, and investments in shares and bonds.

According to the report, based on a tripartite meeting held on April 12, 2026 involving Bangladesh Bank, external auditors, and the bank, along with two directives from the central bank, the total required provision against the bank’s investments and other assets stood at Tk 68.32 billion as of December 31, 2025.

However, the bank-maintained provisions of only Tk 9.27 billion, resulting in a shortfall of Tk 59.04 billion, equivalent to 29.89 percent of the bank’s total investments.

The auditors noted that if the bank had maintained the full provision as instructed by Bangladesh Bank, its post-tax losses would have increased significantly, negatively affecting its Capital to Risk-Weighted Assets Ratio (CRAR), earnings per share (EPS), and other key financial indicators.

The report also stated that Standard Bank recorded investment income of Tk 16.96 billion in 2025, including a Tk 900 million adjustment made in line with Bangladesh Bank directives.

However, auditors found that the bank recognised Tk 2.48 billion in income from classified investments during the year, which should have been transferred to profit suspense and compensation accounts. Had the adjustment been made, the bank’s reported profit would have declined further.

Meanwhile, Standard Bank has investments of Tk 1.50 billion in SBL Capital Management Limited and Tk 800 million in Standard Bank Securities Limited, its subsidiary entities.

The auditors said that although the net asset values (NAVs) of the companies appeared comparatively higher due to delayed provisioning under Bangladesh Securities and Exchange Commission (BSEC) directives, the actual financial condition of the entities remained weak because of falling share prices.

The report also disclosed provisioning shortfalls of Tk 2.51 billion at SBL Capital Management and Tk 473.7 million at Standard Bank Securities.