Social Islami Bank PLC (SIBL) has reported a staggering net loss of over Tk 1,704 crore for the first nine months of 2025, marking its largest financial setback since the bank’s listing on the stock market in 2000. This significant loss contrasts sharply with a net profit of Tk 51 crore recorded during the same period in 2024.
According to the bank’s unaudited financial report for the third quarter (July-September), SIBL’s net loss after tax for the nine-month period from January to September 2025 amounted to Tk 704.48 crore. This is a dramatic decline from the net profit of Tk 51.16 crore in the corresponding period of the previous year.
The bulk of the loss occurred in the third quarter, which alone accounted for a staggering net loss of Tk 1,235 crore. This is a sharp deterioration from the Tk 28.98 crore loss reported in the third quarter of 2024.
The primary factors behind the massive loss include a significant rise in interest expenses and the need for substantial provisioning against loans.
Rising Interest Payouts and Loan Provisions
During the January-September period, SIBL paid a total of Tk 2,444 crore in interest, marking a 32% increase compared to the same period in 2024. Of this, Tk 1,552 crore was paid to depositors, while Tk 891 crore went towards covering the costs of borrowed funds.
The bank also set aside Tk 401 crore as provisioning against loans and advances at risk of becoming non-performing, further adding to its financial strain.
Additionally, SIBL reported an operating loss of Tk 648 crore from its income sources, including shares, brokerage commissions, and other related activities.
High Cost of Funds and Increased Provisions
An official from SIBL, speaking anonymously, confirmed that the major cause of the bank’s significant losses was the “sharp rise in the cost of funds,” largely driven by high interest rates on deposits and the increased interest costs on borrowed capital.
Provisioning for loans at risk of turning into non-performing loans (NPLs) also contributed to the financial difficulties faced by the bank. The official noted that this was a critical factor in the overall poor performance during the period.
SIBL’s financial woes come amid a broader banking sector struggle with rising interest rates and the challenge of managing high levels of non-performing loans, which have put considerable pressure on liquidity and profitability.