City Bank PLC has posted the highest profit in its corporate history for the financial year 2025, achieving a record-breaking performance despite an adverse macroeconomic backdrop characterised by inflationary pressure, tighter liquidity conditions, and persistent global economic uncertainty.
According to disclosures made on Friday (10 April), the bank recorded a consolidated net profit of Tk 1,324 crore, marking an increase of Tk 110 crore, or 31 per cent, compared with the previous year. This consolidated figure includes contributions from four subsidiary entities, which collectively added Tk 18 crore to the overall earnings.
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Financial Performance Overview (2025)
| Indicator | Value (Tk crore) | Remarks |
|---|---|---|
| Consolidated net profit | 1,324 | +31% year-on-year |
| Standalone net profit | 1,306 | Core banking result |
| Subsidiary contribution | 18 | From 4 associate firms |
| Interest income | 5,452 | +24% growth |
| Total operating income | 4,888 | Includes investment & fees |
| Fee & commission income | 997 | 21% of operating income |
| Operating expenses | 2,160 | Cost-to-income ratio 44% |
| Provision expense | 815 | Higher prudential buffer |
| NPL ratio | 2.5% | Improved from 3.7% |
| Provision coverage ratio | 128% | Stronger risk protection |
Strong Core Income Momentum
The bank’s performance was driven primarily by sustained growth in core banking income, disciplined expenditure management, and prudent credit risk oversight. Interest income rose sharply by 24 per cent to Tk 5,452 crore, up from Tk 4,403 crore a year earlier, reflecting both stronger lending activity and improved yield management.
Asset quality also showed marked improvement. The non-performing loan (NPL) ratio declined to 2.5 per cent from 3.7 per cent, indicating enhanced recovery efforts and tighter credit underwriting standards.
Despite inflationary pressure and rising competition for deposits, City Bank successfully contained its cost of funds at around 5.5 per cent. This was achieved through a balanced funding strategy and increased reliance on government securities, which helped stabilise returns in a volatile interest rate environment.
Investment operations played a significant role in supporting profitability. Of the Tk 4,888 crore in total operating income, approximately 26 per cent was generated from the bank’s investment portfolio. After accounting for funding costs, net investment income stood at Tk 1,274 crore.
Diversified Revenue Streams
City Bank maintained a strong position in trade finance, executing around USD 8.01 billion in trade transactions during 2025, placing it among the leading banks in the country in this segment. This business line generated Tk 526 crore in fee and commission income.
Retail banking and card operations delivered particularly strong growth, contributing Tk 471 crore. Overall, fee and commission income reached Tk 997 crore, representing 21 per cent of total operating income and highlighting the bank’s continued diversification beyond traditional corporate lending.
Cost Efficiency and Risk Management
The bank sustained strong cost discipline despite inflationary pressures and the implementation of a revised salary structure from December 2024. The cost-to-income ratio was maintained at 44 per cent, with total operating expenses recorded at Tk 2,160 crore against operating income of Tk 4,888 crore.
Provisioning expenses rose to Tk 815 crore from Tk 628 crore in the previous year, reflecting a more conservative risk approach. This contributed to a strengthened provision coverage ratio of 128 per cent, providing a robust buffer against potential future loan losses.
Management Perspective
Managing Director and Chief Executive Officer Masrur Arefin welcomed the record results, noting that higher provisioning had moderated net profit growth, preventing it from reaching the Tk 1,500 crore threshold.
He emphasised that all core business segments had delivered strong contributions. Notably, retail banking and card services have now surpassed corporate banking in revenue generation, recording a 33 per cent year-on-year increase.
He further highlighted healthy asset quality across small and nano loans, retail credit, and credit card portfolios, alongside City Bank’s continued strength in letters of credit (LC) operations. Effective control over deposit costs, he added, remained a key competitive advantage.
However, he cautioned that corporate and mid-sized enterprise lending could face continued pressure amid ongoing global and domestic macroeconomic uncertainty.
Concluding, he noted that maintaining a cost-to-income ratio below 45 per cent in an institution employing nearly 8,000 staff represents a significant operational achievement, reinforcing City Bank’s position as one of the most efficiently managed financial institutions in Bangladesh.