Eastern Bank PLC, one of Bangladesh’s largest private commercial banks, reported a consolidated profit of Tk 7,503.9 million for the year 2024, marking a 22.8% year-on-year increase from 2023. The robust earnings growth was primarily driven by a sharp rise in interest and investment income, particularly from loans and government securities.
Strong Growth in Interest From Investment
EBL’s income from loans and advances jumped 48.0% to Tk 39,269.7 million. Despite persistent economic uncertainty since early August, the bank expanded its loans and advances portfolio by 16.2%, supporting the surge in interest income and reflecting resilient credit demand across sectors.
The bank also benefited from the removal of the SMART-based interest rate cap, previously regulated by Bangladesh Bank. Additionally, a 25% rise in deposit collection to Tk 457,692 million played a key role in supporting the expansion of its Loans and Advances portfolio.
Robust Gains from Investments in Government Securities
EBL’s investment income rose by 32.4% in 2024, reaching Tk 10,170.8 million, with the bulk of earnings driven by government securities. The bank generated Tk 8,237.0 million from interest income on treasury bills and bonds, accounting for 81% of its total investment income—more than double the Tk 3,908.5 million earned from similar instruments in 2023.
Capitalizing on the high-yield, low-risk nature of government securities, EBL strategically increased its exposure amid a favorable rate environment offering double-digit returns.
Increased Provisioning by the Bank
Driven by higher interest and investment income, Eastern Bank’s total operating income rose by 29.7% year-on-year to Tk 26,626.5 million in 2024. Profit before provision stood at Tk 10,687.4 million, supported by controlled cost growth—operating expenses increased by a moderate 17.7% from the previous year.
However, the bank significantly increased its provisioning, which surged by 78.4% to Tk 2,964.0 million. This rise is likely linked to a slight deterioration in portfolio quality. The bank’s non-performing loans (NPLs) rose by 25.4% to Tk 13,718 million. As a percentage of total loans, the NPL ratio edged up to 3.34% in 2024 from 3.10% a year earlier.
A Resilient Year for Eastern Bank
Despite a modest rise in non-performing loans, Eastern Bank delivered a strong financial performance in 2024. With an NPL coverage ratio of 114.49%, the bank remains one of the most resilient institutions in Bangladesh’s banking sector. Backed by its strong brand presence and strategic focus on interest and investment income, EBL reported a solid profit of Tk 7,503.9 million for the year.
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