City Bank PLC has posted a record consolidated net profit of Tk1,324 crore for 2025, marking a strong 31% growth from the previous year. Reflecting this performance, the bank’s board has recommended a 30% dividend, including 15% cash and 15% stock.
The growth was largely driven by a significant increase in investment income, particularly from government Treasury bills and bonds. Income from these instruments more than doubled during the year, playing a key role in boosting the bank’s overall earnings despite challenges in core banking operations.
While interest income from loans saw moderate growth, rising funding costs put pressure on net interest margins. As a result, the bank’s profitability relied more on non-core income streams such as investments, fees, and commissions.
Over the past five years, City Bank has demonstrated consistent financial improvement, with profits rising steadily from Tk549 crore in 2021 to over Tk1,300 crore in 2025. Key financial indicators also showed strong performance, including growth in earnings per share and net asset value.
The bank’s performance reflects a broader trend in the sector, where financial institutions are increasingly shifting toward government securities amid slower private sector credit growth. This strategy has helped banks maintain profitability, though analysts note potential risks if market conditions change in the future.