The earnings of the listed financial companies mostly declined in the first half (January-June) of the current calendar year compared with that in the same period of the previous year.
Out of the 30 listed banks, the earnings per share of 15 declined and that of the rest 15 increased, while out of the 23 non-bank financial institutions, the EPS of 18 dropped and that of the rest five rose in the first half of 2018 compared with that in the same period of 2017.
Market experts attributed the dullness to scams, colossal amount of non-performing loans and poor monitoring in the financial secotors.
They said the turmoil in the financial sectors also kept the stock market on the edge that also affected earnings of the listed banks and NBFIs.
The bearish trend at the market ate into profits of the financial institutions as a major portion of their profits comes from the capital market, they said.
The key index of Dhaka Stock Exchange, DSEX, plunged by 839 points, or 13 per cent, in the first six months of the year.
Earnings per share of ONE Bank, Standard Bank, Exim Bank, Al-Arafah Islami Bank and AB Bank declined by more than 50 per cent in the period.
Besides, Trust Bank, First Security Islami Bank, Rupali Bank, Uttara Bank, IFIC Bank, City Bank, Eastern Bank, UCB and Prime Bank saw their EPS decline while ICB Islami Bank posted further loss in January-June of 2018, according to the DSE web site data.
The banks that saw their EPS increase in the first half of this year are Mutual Trust Bank, Pubali Bank, Bank Asia, Southeast Bank, Jamuna Bank, National Bank, NCC Bank, Dutch-Bangla Bank, Social Islami Bank, BRAC Bank, Premier Bank, Islami Bank, Shahjalal Islami Bank, Dhaka Bank and Mercantile Bank.
Among the NBFIs, the EPS of Bay Leasing, BD Finance, BIFC, Fareast Finance, FAS Finance, First Finance, GSP Finance, ICB, IDLC Finance, Islamic Finance, LankaBangla Finance, Midas Financing, National Housing Finance, Phoenix Finance, Peoples Leasing, Premier Leasing, Prime Finance and United Finance plummeted in January-June of 2018, while the EPS of Delta Brac Housing Finance, International Leasing Finance, IPDC Finance, Union Capital and Uttara Finance increased in the period.
Market experts said lack of new investments due to liquidity shortage in the banking sector reduced profits of the NBFIs in the first six months of the current calendar year.
Increased cost of funds and higher provisioning requirements due to non-performing loans and losses from capital market investments drained the profits of the NBFIs.
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