Amid Bangladesh’s Banking Turmoil, City Bank Shines Bright with Tk 1,000 Crore Profit

11 Oct 2025

Bangladesh’s banking sector is going through one of the toughest periods in its history.

Soaring defaulted loans, eroding public trust, liquidity pressure, corruption, and weak governance have all combined to create what economists call a “systemic financial crisis.”

While the government scrambles to merge failing banks to contain the damage,

one financial institution—City Bank PLC—has emerged as a shining example of stability, discipline, and performance,

recording a profit exceeding Tk 1,000 crore amid the chaos.

In a time of darkness, City Bank has become the rare beacon of light.

According to Bangladesh Bank data, default loans in the country’s banking sector have now reached around Tk 600,000 crore.

When hidden defaults—such as rescheduled, written-off, or stayed loans—are included,

analysts estimate the real figure could exceed Tk 900,000 crore.

In response, the government has initiated an unprecedented bank merger program in 2025,

combining five troubled Islamic banks into one new state-controlled institution.

For some, this merger is a bold step toward reform.

For others, it’s a desperate attempt to save a collapsing system.

At a time when many banks are struggling to survive,

City Bank PLC has delivered an extraordinary financial performance—

defying the odds, stabilizing operations, and achieving a record consolidated net profit of Tk 1,014 crore in 2024.

Its standalone profit stood at Tk 1,085 crore,

a 59% increase from Tk 638 crore in 2023.

This makes City Bank not only a standout performer in Bangladesh but also one of the most profitable private banks in South Asia.

City Bank reduced its cost-to-income ratio from 60% to 42%,

indicating that for every Tk 100 of income, only Tk 42 went toward operating costs—a mark of strong financial discipline.

The bank’s flagship digital platform, Citytouch, significantly expanded its reach,

enhancing customer engagement and transaction volume.

Strong returns from government securities, bonds, and corporate investments contributed to higher income stability.

In 2024, deposits grew by 31% (Tk 12,177 crore) and loans increased by 12% (Tk 4,831 crore).

City Bank maintained an exceptionally low non-performing loan (NPL) ratio—around 3%,

compared to the national average of nearly 10%.

Indicator Industry Average City Bank

Default Loans (NPL) ~10% <3%

Cost-to-Income Ratio ~65% 42%

EPS (Earnings Per Share) Tk 3.50 Tk 7.53

Dividend 10–15% 25% (12.5% Cash + 12.5% Bonus Shares)

While several banks are struggling to stay solvent,

City Bank continues to reward its shareholders with consistent returns and long-term growth potential.

City Bank’s story is more than just a success—it’s a blueprint for sustainable banking.

It proves that even in a distressed sector, profit and integrity can coexist.

Key takeaways include:

• ✅ Smart cost management and operational discipline

• ✅ Technology-driven innovation

• ✅ Strong corporate governance

• ✅ Transparent leadership and accountability

These factors combined to turn City Bank into a symbol of resilience and trust in a sector under siege.

Challenges Ahead

Even with its success, City Bank faces the same macroeconomic challenges as others:

• Inflationary pressure and exchange rate volatility

• Ensuring compliance with the Basel III standards

• Maintaining independence from political and corporate influence

• Strengthening capital adequacy in a tightening regulatory environment

However, the management’s long-term vision—anchored in digital banking and customer-centric service—

positions the bank well for future growth.

A Light in the Dark

Bangladesh’s banking sector is at a crossroads.

Amid widespread failures, corruption, and uncertainty, City Bank stands as a beacon of hope—

proving that integrity, innovation, and leadership can still drive profitability and trust.

“While others fight for survival, City Bank shows the way forward.”

Sources

• The Business Standard (TBS News), 2025

• The Financial Express, 2025

• Prothom Alo & Bonik Barta

• CPD Policy Review, 2025

• City Bank Annual Report 2024