ICB Islamic Bank makes a profit for the first time in its history
The ICB Islamic Bank, considered the “problematic bank” since its inception, finally managed to turn a profit for the first time in its history.
In the April to June quarter 2022, the bank’s net profit was Tk 10.09 crore and earnings per share (EPS) was Tk 0.15.
But from January to June this year, its net profit fell to Tk 1.23 crore and its EPS to Tk 0.02, year-on-year, due to the loss in the January-March quarter.
Muhammad Shafiq Bin Abdullah, the managing director of ICB Islamic Bank, told The Business Standard: “Right now, we are emphasizing fee-based income like letter of credit (LC) and equity financing. perennial payouts (EMF), and we’ve earned a lot of these types of investments that will continue over the next few years to support our strong earnings.”
“Apart from product diversification, the bank has now recovered the bad loan partly due to management’s effort alone, which also enabled us to post a profit for the first time,” he added.
The origins of ICB Islamic Bank date back to 1987, when it operated as Al-Baraka Bank. In 1994, it became a “problematic bank”. Then, in 2004, it started operating as a regular commercial bank under a new name, “Oriental Bank”.
In June 2006, Bangladesh Bank dissolved the board of Oriental Bank after detecting massive corruption. To safeguard the interests of depositors, the central bank took full control of the bank.
Then, in August 2007, the central bank issued a tender to sell the majority of the bank’s shares.
Two bidders participated in the call for tenders, the Swiss group ICB leaving with the participation. The bank was renamed ICB Islamic Bank in 2008.
In addition, the central bank has also granted the bank a period of time to gradually repay depositors’ money.
According to the annual report for 2021, its bad debt accounted for 81% of the total disbursement and the capital shortfall was Tk 1,660 crore.
It was listed on the stock exchange in 1990. At the end of Thursday’s trading session, its shares closed at Tk5 each on the Dhaka Stock Exchange.