Eastern Bank PLC.(EBL) reported a 28% year-on-year growth in consolidated profit in the first quarter of 2026, supported by strong investment income, higher foreign exchange earnings and lower provisioning expenses, a press release said.
The bank’s consolidated profit after tax stood at Tk 199 crore for the quarter ended 31 March 2026, compared to Tk 155 crore in the same period last year. Earnings per share rose to Tk 1.24 from Tk 0.97 a year earlier, while net asset value per share increased to Tk 32.75 from Tk 26.41.
EBL Managing Director Hassan O. Rashid said the bank delivered resilient performance despite slower credit growth environment. “We continue to remain focused on maintaining strong asset quality, capital strength and liquidity while deepening customer relationships and expanding digital capabilities,” he added.
Net interest income — the spread between what a bank usually earns on loans and pays on deposits — declined to Tk 117 crore from Tk 228 crore a year ago, reflecting a structural shift in how the bank deployed its funds during the quarter. With private sector credit demand slowing, EBL channeled a larger share of its fund into government securities rather than loans — a strategy that compressed the traditional lending spread but generated significantly higher and safer returns through the investment portfolio.
Interest expense rose 16% to Tk 1,073 crore as funding costs remained elevated, while interest income from loans grew only 3% to Tk 1,190 crore. The bank offset this gap through investment income, which surged 24% to Tk 478 crore, effectively converting a headwind in net interest income into a broader income diversification story.
Non-funded income, including fees, commissions and foreign exchange earnings, increased 14% to Tk 192 crore. Foreign exchange income posted strong growth of 54% to Tk 57 crore, driven by higher trade flows and card business transactions.
EBL maintained strong asset quality with its non-performing loan (NPL) ratio standing at 2.80% on a standalone basis at the end of March 2026, virtually unchanged from 2.79% a year ago and significantly below the industry average.
The bank’s capital position remained strong. The Capital to Risk Weighted Assets Ratio (CRAR) stood at 16.71% on a standalone basis and 16.09% on a consolidated basis, well above the
regulatory minimum of 12.5%. The bank’s liquidity remained ample, with its Liquidity Coverage Ratio (LCR) at 236.94% and Net Stable Funding Ratio (NSFR) at 114.97% — both well above regulatory minimums of 100%.
Total deposits of the bank grew 20% year-on-year to Tk 56,207 crore, while standalone total assets increased 17% to Tk 76,961 crore.
Eastern Bank holds an AAA long-term and ST-1 short-term domestic credit rating from CRAB — the highest possible rating — for the third consecutive year. Moody’s reaffirmed the bank’s B2 rating in December 2025, in line with Bangladesh’s sovereign rating ceiling.
