First Security Islami Bank incurs Tk 31cr loss in Q3

First Security Islami Bank PLC suffered a loss of Tk 31.31 crore in the third quarter of this year, as its investment income fell and the cost of deposits increased.

The bank's loss in the July-September quarter reflects a sharp reversal from Tk 38.41 crore profit posted in the same period last year.

Its losses per share was Tk 0.26 in the July-September quarter of this year compared to earnings of Tk 0.31 during the same period a year ago, according to the bank's latest unaudited financial statements.

The Shariah-based commercial lender, which saw its board restructured by the central bank in September, said its net profit declined 63 percent year on year to Tk 58.91 crore in the January-September period of the current year from Tk 159.67 crore the previous year.

The bank's loss in the July-September quarter reflects a sharp reversal from Tk 38.41 crore profit posted in the same period last year

Majority owned by S Alam Group, an influential industrial conglomerate during the recently ousted Awami League government, First Security Islami Bank attributed the downturn in profit to a Tk 135.35 crore drop in net investment income, citing factors such as increased profit rates on deposits.

The bank's consolidated net operating cash flow per share for January to September stood at a negative Tk 27.16.

The lender said the cash flow declined because an amount of Tk 2,828.02 crore in interbank placements was paid off.

Shares of the bank rose 6.35 percent to Tk 6.7 yesterday at the Dhaka Stock Exchange.