Eastern Bank's profits almost doubled year-on-year in the July-September quarter despite lower interest income amid the coronavirus pandemic.
Analysis of the quarter shows that the listed lender's profits had soared 92 per cent to Tk 138.05 crore in the quarter. Similar net profit comparison of the past nine months shows that it has risen 28 per cent, well over the industry's 3.49 per cent.
The bank's profits rose riding on its higher income from stock market investments, investment in government securities, and lower provisioning.
"The interest income was normal," said EBL Managing Director and CEO Ali Reza Iftekhar. "This year, our interest income was low due to the 9 per cent lending rate."
The lender's net interest income dropped 24 per cent to Tk 151 crore in the quarter while that of the industry by 25 per cent.
In the past nine months, Eastern Bank's net interest income declined 27 per cent year-on-year to Tk 463 crore.
Income from investments doubled to Tk 128.86 crore in the third quarter of the year.
Its provisioning stood at Tk 3.72 crore in the negative. It was Tk 58.14 crore in the same period the previous year, shows the financial report.
"We have kept enough provisioning for the January-September period as a whole," said Iftekhar.
He said the bank, which started its journey in 1992, had never failed to meet the provisioning requirement.
"In the next quarter, we will keep provision as per the central bank's direction along with our judgement for the betterment of the bank," he said.
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