City Bank, a leading private commercial bank in Bangladesh, recorded a staggering 162 percent growth in its net profit for the first quarter (Q1) ending March 31, 2026.

According to a press release issued by the bank on Thursday, its Profit After Tax (PAT) surged to Tk 241 crore in Q1 2026, up from Tk 92 crore during the same period last year.

Consequently, the bank's Earnings Per Share (EPS) rose significantly to Tk 1.6, compared to Tk 0.6 in the previous year.

The strong financial performance was largely driven by robust core banking income. Interest income from loans grew by 14 percent, reaching Tk 1,306 crore, up from Tk 1,143 crore. Investment income also saw a sharp rise, jumping from Tk 603 crore to Tk 1,014 crore, accounting for 32 percent of the total operating income.

The bank’s fee and commission income grew by 27 percent, fueled by increased earnings from foreign exchange transactions, card fees, and trade commissions. Total income for the quarter stood at Tk 1,338 crore, marking a 38 percent overall increase.

Operating profit rose by 61 percent to Tk 743 crore, compared to Tk 461 crore in the first quarter of last year. Improved cost management brought the Cost-to-Income ratio down to 44 percent from 52 percent. Additionally, enhanced asset quality resulted in lower provisioning requirements, further boosting the net profit.

Despite the stellar financial results, City Bank’s Managing Director and CEO, Mashrur Arefin, expressed caution regarding the broader banking landscape. While welcoming the profit growth, he voiced concern over a decline in loan growth.

"The downward trend in credit growth is a matter of concern for the entire banking sector," Arefin noted, highlighting the challenges facing the industry's traditional lending model.