City Bank PLC has reported the highest profit in its corporate history for the year 2025, delivering a landmark financial performance despite a challenging macroeconomic environment marked by inflationary pressures, liquidity constraints, and global economic uncertainty.
According to disclosures made on Friday (10 April), the bank posted a consolidated net profit of Tk 1,324 crore, representing an increase of Tk 110 crore, or 31 per cent, compared with the previous year. The figure includes contributions from the bank’s four subsidiary companies, which collectively added Tk 18 crore to the overall profit.
Financial Performance Snapshot (2025)
| Indicator | Value (Tk crore) | Change / Notes |
|---|---|---|
| Consolidated net profit | 1,324 | +31% year-on-year |
| Standalone net profit | 1,306 | Core banking performance |
| Subsidiary contribution | 18 | From 4 associate companies |
| Interest income | 5,452 | +24% from previous year |
| 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 | Up from 628 previous year |
| NPL ratio | 2.5% | Improved from 3.7% |
| Provision coverage ratio | 128% | Strengthened risk buffer |
Strong Core Banking Growth
The bank attributed its record profitability to sustained growth in core income streams, disciplined cost management, and prudent risk controls. Interest income from loans rose by 24 per cent to Tk 5,452 crore, compared with Tk 4,403 crore in the previous year, reflecting both expansion in lending activity and improved pricing discipline.
At the same time, asset quality improved significantly. The ratio of classified loans, or non-performing loans (NPLs), declined to 2.5 per cent from 3.7 per cent a year earlier, signalling stronger credit risk management and recovery efforts.
City Bank also managed to contain its cost of funds at around 5.5 per cent despite persistent inflationary pressures and rising deposit costs across the banking sector. The institution strategically increased its investment in government securities, allowing it to offset funding pressures while maintaining stability in returns.
Investment income played a key role in overall performance. Of the bank’s Tk 4,888 crore total operating income, 26 per cent was generated from its investment portfolio. After adjusting for funding costs, net investment income stood at Tk 1,274 crore.
Trade and Fee-Based Expansion
The bank maintained a leading position in trade finance, executing approximately USD 8.01 billion in trade business during 2025—among the highest volumes in Bangladesh’s banking sector. This segment generated Tk 526 crore in commission and fee income.
Retail banking and card services also delivered strong growth, contributing an additional Tk 471 crore. Combined fee and commission income reached Tk 997 crore, accounting for 21 per cent of total operating income, highlighting the bank’s increasing diversification away from traditional lending.
Efficiency and Cost Discipline
Despite inflationary pressures and the implementation of a revised salary structure from December 2024, City Bank successfully maintained its cost-to-income ratio at 44 per cent. Total expenses stood at Tk 2,160 crore against operating income of Tk 4,888 crore, reflecting strong operational discipline.
Provisioning expenses increased to Tk 815 crore from Tk 628 crore in the previous year, reflecting a more conservative stance on credit risk. As a result, the provision coverage ratio improved to 128 per cent, strengthening the bank’s buffer against potential loan defaults.
Management Commentary
Managing Director and Chief Executive Officer Masrur Arefin welcomed the results, noting that higher provisioning had restrained net profit from reaching the Tk 1,500 crore mark. He emphasised that all core business segments had contributed strongly to the overall performance.
He highlighted that retail banking and card operations have now surpassed corporate banking in revenue contribution, registering a 33 per cent year-on-year increase. He also noted healthy asset quality across small business, nano loans, retail lending, and credit card portfolios.
Mr Arefin further underscored the bank’s leadership in letters of credit (LC) operations and its ability to control deposit costs as key competitive advantages. However, he cautioned that corporate and mid-sized enterprise lending may face continued pressure due to global and domestic macroeconomic uncertainty.
He concluded that maintaining a cost-to-income ratio below 45 per cent for an institution with nearly 8,000 employees represents a significant operational achievement, reinforcing City Bank’s position as one of the most efficiently managed financial institutions in the country.