Sonali Bank’s H1 profit jumps 193pc to Tk1,878cr

Sonali Bank PLC, the country’s largest state-owned commercial bank, posted a 193 percent year-on-year surge in consolidated net profit to Tk1,878 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 Tk41.47 during January-June 2026, from Tk14.14 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 Tk1,423 crore in net profit during the same period.

Sonali Bank’s net interest income, however, declined 26 percent year-on-year to Tk424.88 crore in the first half, mainly due to higher borrowing costs.

The bank offset the decline in interest income through stronger treasury operations. Its investment income rose 9 percent year-on-year to Tk4,824 crore during the period.

Despite the higher investment income, the bank’s operating profit – consolidated profit before tax and provision – fell 6 percent to Tk3,546 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 Tk1,113 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 Tk332.03.