Despite a challenging macroeconomic landscape, City Bank PLC has achieved the highest profit in its history for the year 2025. The bank reported a consolidated net profit of BDT 1,324 crore, marking a significant 31% increase (BDT 110 crore) compared to the previous year.
According to data released by the bank on Friday (April 10), the solo net profit stood at BDT 1,306 crore, with an additional BDT 18 crore contributed by its four subsidiary companies. This robust growth is attributed to consistent revenue streams, disciplined expense management, and prudent risk control.
Key Financial Highlights (2025)
The bank’s financial health showed improvement across several critical metrics:
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Interest Income: Revenue from loans grew by 24%, reaching BDT 5,452 crore.
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Asset Quality: The Non-Performing Loan (NPL) ratio improved significantly, dropping to 2.5% from 3.7% the previous year.
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Operating Income: Total operating income reached BDT 4,888 crore.
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Cost of Deposits: Despite inflationary pressures, the bank maintained its deposit cost at 5.5%.
Strategic Investment and Trade Leadership
To mitigate rising funding costs, City Bank pivoted toward strategic investments in government securities. This sector contributed 26% to the total operating income. After adjusting for funding costs, the net investment income stood at BDT 1,274 crore.
Furthermore, City Bank solidified its position as a leader in trade finance, handling $8.01 billion in trade business—the highest among domestic banks in 2025. This generated BDT 526 crore in commission and fee income. When combined with BDT 471 crore from retail banking and card services, the total fee and commission income reached BDT 997 crore, accounting for 21% of total operating income.
Efficiency and Provisioning
City Bank demonstrated strong operational efficiency by maintaining a cost-to-income ratio of 44%, despite a new salary structure implemented in December 2024 and ongoing inflation. Total expenses were recorded at BDT 2,160 crore against an income of BDT 4,888 crore.
The bank also prioritized long-term stability by increasing its provision cover:
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Provision Expense: Increased to BDT 815 crore (up from BDT 628 crore in 2024).
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Provision Coverage Ratio: Rose to 128% by year-end.
“Our net profit could have reached BDT 1,500 crore if not for the higher provisioning, which we chose to do for future security,” said Mashrur Arefin, Managing Director and CEO of City Bank.
Performance by Segment
Mr. Arefin noted that all core segments performed strongly. Notably, income from Retail Banking and Cards grew by 33%, surpassing Corporate Banking for the first time. He expressed satisfaction with the quality of small business, nano-loans, and credit card portfolios.
While he identified the bank’s ability to control deposit costs and its leadership in the LC (Letter of Credit) business as core strengths, he remained cautious about the corporate and medium-enterprise sectors due to global macroeconomic pressures.
“For a large bank with nearly 8,000 employees, keeping the cost-to-income ratio below 45% is one of our greatest achievements,” Arefin concluded.
