City Bank has reported an annual profit exceeding Tk 10 billion for the first time since its inception in 1983, marking a 59% year-on-year growth in 2024, bolstered by strong investment returns from government securities and rising interest income.

According to its audited financials, approved by the board on Tuesday, the bank’s consolidated net profit reached Tk 10.14 billion, while its standalone profit stood at Tk 10.85 billion.

A minor decline in consolidated profit was attributed to provisioning against unrealised losses in capital market investments by two of its subsidiaries.

The bank’s earnings came amid inflationary pressures, which CEO Mashrur Arefin said were countered by cost management and increased public confidence. “Our cost-to-income ratio dropped from 60% to just 42%, leading to a substantial rise in net profit,” he noted in a statement.

Deposits grew by 31% year-on-year to Tk 121.77 billion, while loans expanded by 12%, or Tk 48.31 billion. A significant share of the surplus was channelled into Treasury bills and bonds, contributing 19% of total revenue. Core banking activities, including interest income on loans, accounted for 76% of the bank’s income.

The board has proposed a 25% dividend for 2024—split equally between cash and bonus shares—to strengthen the bank’s capital base. Tk 1.68 billion will be disbursed as a cash dividend to shareholders.

Following the announcement, City Bank’s shares rose 1.77% to Tk 23 on the Dhaka Stock Exchange. The AGM is scheduled for 19 June, with the record date set for 22 May.