AHSAN HABIB

For three banks, 2024 brought cause for celebration as they crossed the milestone of Tk 1,000 crore in annual profits for the first time. But for nine others, it was a year of reckoning, marked by mounting losses and a desperate fight for survival.

This stark divide followed sweeping reforms in the banking sector that were introduced following the July uprising last year. As political influence lost its grip on the industry, governance improved, and long-buried toxic assets began to surface.

The fault lines separating strong lenders from struggling institutions became clearer, bringing the governance issue to the forefront.

Leveraging good governance and capitalising on solid customer trust last year, three banks joined the Tk 1,000 crore profit club, while nine of their market peers posted a combined loss of Tk 9,500 crore, according to an analysis by The Daily Star.

The findings are based on the latest available financial statements of 50 banks. Islami Bank Bangladesh, the country’s largest shariah-based lender, was not included in the review as it has yet to publish its report.

Islami Bank made headlines during the previous regime several times over allegations of loan irregularities and corruption. Had its data been available, the divide in fortunes would likely have appeared even more dramatic.

Standard Chartered Bank led the profit-makers, posting a record-breaking Tk 3,300 crore in profits last year, the highest annual profit ever recorded by a bank in Bangladesh. This marked a 41 percent jump from its 2023 figure of Tk 2,335 crore, shows the analysis.

BRAC Bank, HSBC Bangladesh, and City Bank also crossed the Tk 1,000 crore profit threshold for the first time. BRAC Bank’s earnings surged by 73 percent year-on-year, while City Bank saw a 60 percent increase.

“The real game-changer here is governance,” said Asif Khan, president of CFA Society Bangladesh, a platform for investment professionals.