STAR BUSINESS REPORT

National Bank’s losses grew in 2024 due to rising interest expenses and continued non-recovery from defaulters.

The bank posted a consolidated loss of around Tk 1,706 crore for the year, reflecting a 14 percent year-on-year downturn.

Its consolidated loss per share stood at Tk 5.30 last year, compared to a restated loss of Tk 4.65 in 2023, the bank said in a filing on the Dhaka Stock Exchange (DSE) yesterday.

The lender’s share price remained unchanged at Tk 3.70 on the DSE.

According to the disclosure, the bank could not book interest income from loans and advances during the year due to continued non-recovery from defaulters. It also faced higher interest expenses on borrowings, resulting in an operating loss.

The bank’s consolidated net operating cash flow per share stood at negative Tk 19.68 in 2024, down sharply from negative Tk 1.84 in the previous year.

It also noted significant deterioration in its net asset value and earnings per share.

The board of directors recommended no dividend for the year ending December 31, 2024.

National Bank last issued a cash dividend in 2019 and a stock dividend in 2020.

The bank said its newly appointed board and management are placing emphasis on improving its health through enhanced recovery drives and increased mobilisation of low-cost deposits.

For the first quarter of 2025, National Bank reported a consolidated loss of Tk 222.16 crore.

Its consolidated loss per share narrowed to Tk 0.69 from Tk 1.48 year-on-year.

Similar to previous periods, the bank cited an inability to book interest on loans due to defaulters and higher interest expenses on deposits and borrowings as key reasons for the loss.

As of the end of March this year, 15.53 percent of the bank’s shares were held by sponsors and directors, 38.81 percent by institutional investors, 0.36 percent by foreign investors, and 45.30 percent by the general public, according to DSE data.