Earnings per share (EPS) of most of the listed banks marked rise in the first quarter (Q1) for January-March, 2020 compared to the same quarter of the previous year despite Covid-19 pandemic.
EPS is the portion of a company's profit that is allocated to every individual stock. In short, it serves as an indicator of a company's profitability.
Of the 30 banks listed on the Dhaka Stock Exchange, 27 have disclosed their January-March, 2020 earnings as of Tuesday.
According to the un-audited financial statements for January-March, 2020, the consolidated EPS of 19 banks surged while seven banks' EPS declined and one remained unchanged.
Banking sector insiders said most banks' EPS rose in January-March, 2020 due to increase in operating profit and decrease of non-performing loans, due to the special facilities the central bank offered to defaulters.
"The non-performing loans are now under control and the banks are now abiding by the rules set by the central bank, which helped most banks' EPS surge,"said a managing director of a leading private bank preferring anonymity.
Analysts, however, said the un-audited EPS of a company often does not reflect actual financial health of a listed firm, but indicates profitability that influences investors towards their long-term investment.
As per the un-audited financial statements, ONE Bank registered the highest EPS surged by 260 per cent as its EPS stood at Tk 0.83 for January-March, 2020, which was Tk 0.23 in the same quarter of the previous year.
The EPS of Standard Bank also jumped 245 per cent to Tk 0.38 for January-March, 2020 which was Tk 0.11 in the same quarter a year ago.
The NCC Bank's EPS soared 110 per cent to Tk 0.84 for January-March, 2020, which was Tk 0.40 in the January-March, 2019.
The National Bank's EPS also rose 106 per cent to Tk 0.31 in the first quarter of 2020, which was Tk 0.15 in the same quarter last year.
The EPS of Jamuna Bank rose 103 per cent to Tk 1.42 for January-March, 2020, as against Tk 0.70 in the same quarter of the previous year.
The EPS of City Bank remained same at Tk 0.75 for January-March, 2020, which was also Tk 0.75 in January-March, 2019.
The Bank Asia's EPS jumped 96 per cent to Tk 1.16 for January-March, 2020 which was Tk 0.59 in the same quarter of the previous year.
On the other hands, Exim Bank saw the highest EPS fall by 84 per cent to Tk 0.04 in January-March, 2020, which was Tk 0.25 in the same quarter last year.
Exim Bank has also informed that EPS declined mainly due to decrease in operating income and increase in provisions for diminution in value of shares.
The EPS of Brac Bank also fell 32 per cent to Tk 0.71 for January-March, 2020.
ICB Islamic Bank continued to incur losses. The bank's per share incurred a loss of Tk 0.09 in January-March, 2020, as against Tk 0.16 in the same quarter in the previous year.
