Exim Bank Narrows Quarterly Loss by 41% but Faces Ongoing Cash Strain

Export Import (Exim) Bank of Bangladesh PLC has reported a 41% reduction in its quarterly losses, narrowing the deficit to Tk333 crore for the July-September period of 2025, compared to the same quarter last year.

Despite this improvement, the shariah-based private lender continues to struggle with a severe liquidity crisis and mounting provisioning pressures.

According to the bank’s unaudited financial statement, released today on the Dhaka Stock Exchange (DSE), the loss per share stood at Tk2.30, down from Tk3.91 in the corresponding period of 2024. This signals a gradual recovery from the significant losses suffered last year.

For the first nine months of 2025, Exim Bank reported a cumulative loss of Tk314 crore, a 22% reduction from the Tk401 crore loss recorded during the same period in 2024. During this period, the consolidated loss per share was Tk2.17, compared to Tk2.77 a year earlier.

However, despite this reduction in losses, the bank’s liquidity position remains under intense strain. Its net operating cash flow per share turned negative, registering Tk20.80, indicating that cash outflows significantly outpaced inflows during the nine-month period.

Following the earnings announcement, Exim Bank’s share price dropped by 3.13%, closing at Tk3.10.

The bank’s financial challenges are compounded by ongoing regulatory and governance issues. In August 2024, Bangladesh Bank dissolved Exim Bank’s board of directors, citing irregularities and governance failures. The central bank subsequently appointed five new members to the reconstituted board and removed former chairman Md Nazrul Islam Mazumder and his wife Nasreen Islam from their posts.

Exim Bank is also under close regulatory scrutiny as it proceeds with a merger process with four banks affiliated with the controversial S Alam Group. The merger is intended to help stabilise the financially troubled group and its associated entities.

Exim Bank’s financial performance has been declining for the past two years. In 2024, the bank posted a small net profit of Tk26 crore, a dramatic 92% drop from Tk338 crore in 2023. In light of these results, the bank did not declare a dividend for 2024, in contrast to the 10% cash dividend paid out in 2023.