Listed banks in Bangladesh collectively incurred a net loss of Tk 1,424 crore in the July-September quarter of 2026, as losses from their core lending businesses continued to mount despite earnings from investments.
Of the 31 listed banks that published their third-quarter financial results, nine reported combined losses of Tk 5,126 crore, while the remaining 22 posted aggregate profits of Tk 3,702 crore. The profits were insufficient to offset the losses, resulting in an overall deficit for the sector.
An analysis of financial statements based on Dhaka Stock Exchange (DSE) data shows that 16 banks recorded higher profits than in the same period last year, six saw their profits decline, and nine incurred losses.
Trading in five of the 36 banks listed on the country’s two stock exchanges remains suspended due to merger-related developments and special audit processes.
The growing dependence on investment income has become evident in banks’ latest financial results. Pubali Bank posted the highest net profit of Tk 900 crore during the quarter, marking a 170 per cent year-on-year increase. However, the bank incurred a loss of Tk 150 crore from its core lending operations.
The bank’s strong profitability was largely supported by investment income, including coupon earnings from government Treasury bonds offering returns of 11.5 to 12.5 per cent.
BRAC Bank ranked second with a net profit of Tk 697.50 crore, up from Tk 629.95 crore in the same quarter last year, representing growth of 10.72 per cent.
City Bank ranked third with a profit of Tk 341 crore, although its earnings declined 19 per cent year-on-year.
Prime Bank posted a profit of Tk 251.66 crore, while Dutch-Bangla Bank earned Tk 182.33 crore. Eastern Bank recorded a profit of Tk 235 crore despite incurring losses from its lending operations.
Among the loss-making banks, Islami Bank Bangladesh PLC reported the worst performance, posting a net loss of Tk 1,970 crore in the July-September quarter, compared with a profit of Tk 32.36 crore in the same period last year.
The bank also incurred a loss of Tk 1,499 crore from its core interest- and investment-earning operations.
AB Bank reported a loss of Tk 880 crore, followed by IFIC Bank with Tk 838 crore and National Bank with Tk 729 crore. Their lending operations also suffered substantial losses.
AB Bank incurred a loss of Tk 755 crore from lending, while the figures stood at Tk 746 crore for IFIC Bank and Tk 1,041 crore for National Bank.
Rupali Bank’s quarterly loss increased to Tk 355 crore from Tk 168 crore a year earlier. In contrast, Premier Bank reduced its loss to Tk 169 crore from Tk 541 crore.
Standard Bank also moved into the red, reporting a loss of Tk 159 crore after posting a profit in the corresponding period last year.
The financial results further highlight growing weaknesses in banks’ core lending businesses. According to the available data, 16 banks incurred losses from lending operations, while eight recorded declines in net interest income. Only three banks reported growth in interest income.
Bangladesh Bank data show that private sector credit growth stood at 4.75 per cent in August 2026, down from 6.35 per cent in the same month last year.
In contrast, credit growth in the public sector reached 32.45 per cent, while the government’s net borrowing growth stood at 36.40 per cent.
Reluctance among businesses to invest, high borrowing costs, energy shortages and economic uncertainty have weakened private sector demand for loans. At the same time, rising default loans have made banks more cautious about fresh lending.
Banking sector insiders said rising non-performing loans, weak corporate governance and inadequate monitoring of lending activities have put additional pressure on banks’ financial health.
The need to maintain higher provisions against defaulted loans has also affected profitability. Against this backdrop, income from government Treasury bond investments, including coupon earnings and capital gains, has increasingly become an alternative source of revenue for banks.
