BB profit up 15pc to Tk 26,023cr
Bangladesh Bank (BB)’s net profit rose 15 percent year-on-year to Tk 26,023 crore in the 2025-26 fiscal year, driven largely by higher interest income from lending to commercial banks and returns from investing the country’s foreign exchange reserves.
The central bank’s earnings increased despite a slowdown in economic activity, as weaker government revenue and greater borrowing by the government and commercial banks boosted its lending income, officials said.
The board of directors of Bangladesh Bank approved the financial statements for FY26 at a meeting on Sunday, chaired by Governor Md Mostaqur Rahman.
The banking regulator recorded a gross profit of Tk 35,016 crore during the fiscal year, while its expenditure stood at Tk 8,993 crore. It subsequently transferred Tk 25,977 crore to the government.
A significant share of the central bank’s earnings came from lending operations. Officials from its accounts and budgeting department said lending remained strong despite the economic slowdown.
As government revenue weakened, both the government and commercial banks increased their borrowing from Bangladesh Bank, resulting in higher interest income for the central bank.
Bangladesh Bank also earned strong returns from investing its foreign exchange reserves in different countries, further contributing to the increase in its overall profit.
The rise in profit comes despite the broader economic slowdown, highlighting the unusual relationship between the central bank’s earnings and economic conditions.
Bank officials said Bangladesh Bank generally earns lower profits when the economy is performing well, as demand for borrowing from the central bank tends to be weaker.
Its profits tend to rise during economic downturns, when the government and commercial banks rely more heavily on central-bank financing.
Six-month bonus approved
The Bangladesh Bank board also approved an incentive bonus equivalent to six times the basic salary for its officials.
As a result, all employees of the central bank will receive a bonus equivalent to six months of their basic salary. Bangladesh Bank employees received a similar bonus in the previous fiscal year.
The central bank’s higher earnings have therefore coincided with increased borrowing by the government and commercial banks, raising questions about the underlying drivers of its profitability.
While the stronger returns provide additional income for the government, officials stressed that the pattern is closely linked to borrowing demand and returns on reserve investments rather than a broad-based improvement in economic conditions.
