Islami Bank plunges into Tk 1,028cr loss in Q2

Islami Bank Bangladesh, the leading Shariah-based lender, plunged into a loss of Tk 1,028 crore in the April-June quarter of 2026, weighed down by a slump in investment income and a rise in non-performing investments.

Its consolidated loss per share in the second quarter stood at Tk 6.39, against earnings per share (EPS) of Tk 0.24 a year earlier, the bank stated in a price-sensitive disclosure yesterday.

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Earnings per share fell compared to the previous period mainly due to profit paid on deposits, lower investment income from rising non-performing investments, and reduced income from placements with other banks, the bank reported.

The Shariah-based lender said it has taken measures in line with Bangladesh Bank’s recent guidance to improve asset quality, strengthen investment recovery, and boost income generation, which are expected to aid future earnings and EPS.

Including the earnings of the latest quarter, Islami Bank’s losses stood at Tk 1,316 crore in the first six months of 2026, compared to a profit of Tk 64 crore in the same period the previous year.

During the first half of this year, the bank’s consolidated net operating cash flow per share stood at Tk 9.66 for January-June 2026, against Tk 17.68 a year earlier, mainly due to a decline in deposits during the second quarter.

The bank said it is taking steps in line with BB’s regulatory stance to strengthen deposit mobilisation, maintain adequate liquidity, and improve operating cash flow.

Shares of Islami Bank Bangladesh fell 2.82 percent to Tk 31 as of 1:12 pm on the Dhaka Stock Exchange (DSE) yesterday.

As of June 30, 2026, institutions held 75.08 percent of the bank’s shares, while foreign investors held 17.91 percent; the remaining shares are owned by sponsors, directors, the government, and the public.