Dhaka, Sept 21 (V7N) – Sonali Bank PLC, the country's largest state-owned commercial bank, posted a 193 percent year-on-year surge in consolidated net profit to Tk 1,878 crore in the first half of 2026, supported mainly by higher investment income and lower provisioning requirements.
The bank's consolidated earnings per share (EPS) rose to Tk 41.47 during January-June 2026, from Tk 14.14 in the corresponding period of 2025, according to its recently released financial statements. The performance put Sonali Bank's half-year net profit above that of leading private commercial banks, with BRAC Bank reporting Tk 1,423 crore in net profit during the same period.
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Consolidated Net Profit | Tk 1,878 crore | Tk 641 crore | +193% |
| EPS | Tk 41.47 | Tk 14.14 | +193% |
| Net Interest Income | Tk 424.88 crore | Tk 574 crore | -26% |
| Investment Income | Tk 4,824 crore | Tk 4,426 crore | +9% |
| Operating Profit | Tk 3,546 crore | Tk 3,772 crore | -6% |
| Provisions | Tk 1,113 crore | Tk 2,715 crore | -59% |
Sonali Bank's net interest income declined 26 percent year-on-year to Tk 424.88 crore in the first half, mainly due to higher borrowing costs. The bank offset the decline in interest income through stronger treasury operations, with investment income rising 9 percent to Tk 4,824 crore during the period. Despite the higher investment income, the bank's operating profit—consolidated profit before tax and provision—fell 6 percent to Tk 3,546 crore, mainly due to increased administrative expenses.
The sharp rise in net profit was largely driven by a significant reduction in provisions against non-performing loans. Sonali Bank maintained Tk 1,113 crore in provisions during the first half of 2026, down 59 percent from the provision maintained in the same period of the previous year.
Meanwhile, the bank's classified loans increased to 18.27 percent of its total loans at the end of June 2026, from 15.78 percent at the end of 2025, according to Bangladesh Bank data. At the end of June 2026, Sonali Bank's consolidated net asset value (NAV) per share stood at Tk 332.03.
The rise in classified loans remains a concern for the state-owned bank, which has been working to improve its asset quality and recover defaulted loans. The government has been implementing various reforms in the banking sector, including strengthening loan recovery efforts and improving corporate governance in state-owned banks.
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