City Bank PLC reported its highest-ever profit in 2025 despite a challenging economic environment.
The bank posted a consolidated net profit of Tk 13.24, registering an impressive 31 per cent growth from Tk 10.14 billion in the previous year. On a standalone basis, the bank earned Tk 13.06 billion, while its four subsidiary companies contributed an additional Tk 180 million in net profit, said a press release.
This growth was driven by a combination of strong income generation, disciplined cost management, and prudent risk practices.
Interest income from loans grew significantly by 24 per cent, rising from Tk 44.03 billion to Tk 54.52 billion. The bank also improved its asset quality. The non-performing loan (NPL) ratio declined to 2.5 per cent at the end of 2025, down from 3.7 per cent a year earlier, reflecting robust credit risk management.
Despite persistent inflationary pressure, the bank maintained its cost of deposits at 5.5 per cent. Although borrowing costs increased significantly during the year, the impact was effectively offset by strategic investments in high-yield government securities. As a result, the contribution of such investments to the total operating income of Tk 48.88 billion rose to 26 per cent. Net investment income, after accounting for fund costs, stood at Tk 12.74 billion.
The bank also recorded the highest trade business volume among local banks at USD 8.01 billion, contributing to strong commission and fee income. Earnings from trade services amounted to Tk 5.26 billion, while retail banking and cards generated Tk 4.71 billion. Total fee and commission income, therefore, reached Tk 9.97 billion, representing 21 per cent of the bank’s total operating income.
Cost efficiency remained a key strength. Despite inflation and the full-year impact of salary revisions implemented in December 2024, the bank successfully contained its cost-to-income ratio at 44 per cent. Against a total income of Tk 48.88 billion, total costs stood at Tk 21.60 billion.
To further strengthen its financial resilience, the bank increased its provision expenses to Tk 8.15 billion, up from Tk 6.28 billion in the previous year. This strategic move enhanced the provision coverage ratio to a robust 128 per cent by the end of 2025.
The bank’s Managing Director and CEO, Mashrur Arefin, expressed satisfaction with the performance, while noting that higher-than-average provisioning for bad debts prevented profit from reaching Tk 15 billion, which was his personal target.
He added, 'Encouragingly, at City Bank, strong income is being generated across all core banking segments. Retail banking and cards have already overtaken corporate banking income, posting a 33 per cent growth over the previous year. From a credit quality perspective, our small business loans, nano loans, retail loans, and credit card portfolios have performed exceptionally well. Our leadership in LC business and our ability to maintain the cost of deposits at 5.5 per cent remain key strengths. That said, we do have concerns regarding our corporate and medium enterprise lending portfolios, given both domestic macroeconomic conditions and global factors.'
He concluded by saying, 'maintaining a cost-to-income ratio below 45 per cent for a bank of 8,000 people has been, in my view, our most significant achievement.'