Banking Sector Review
At the end of 2022, total assets in the banking sector increased by 7.50% and stood at BDT 21,962 billion, which was 10.99% growth at the end of 2021. Total loans and advances escalated by 13.45%, and stood at BDT 15,026 billion at the end of 2022. Total deposit of banking sector stood at BDT 16,029 billion, and saw a 5.6% growth in December 2022. Credit growth was much higher than the deposit growth, and this higher credit growth might entail stress in liquidity management of banks in the future. Net profit after tax (NPAT) of banking sector reached at BDT 142 billion with a robust 184.0% growth (YoY) at the end of 2022, which was BDT 50 billion in 2021.
Return on assets (ROA) of the banking sector increased to 0.62% in 2022 compared to 0.25% in 2021. On the other hand, the return on equity (ROE) increased remarkably to 10.70% from 4.37% in 2021. The non-performing loan (NPL) in the banking sector reached 8.16% at the end of December 2022, up from 7.93% in the preceding year. The growing trend in NPLs has been mostly attributed to poor corporate governance, relaxed regulations implemented by the central bank, and political instability.
At the end of December 2022, total loan disbursement of banking sector stood at BDT 13,877 billion, a 14.6% growth from previous year of BDT 12,105 billion. At the end of 2022, four sectors, namely large Industries, wholesale and retail trade, miscellaneous, and import financing experienced a double digit share i.e. 26.5%, 18.2%, 12.3% and 10.1% respectively.
Among the listed banks, JAMUNABANK paid the highest cash dividend (17.5% cash and 3% stock) in 2022, followed by DUTCHBANGL (17.5% cash and 2% stock), PRIMEBANK (17% cash), BANKASIA (15% cash and 7.5% stock).
