January 03, 2012

Company Profile

ONE Bank Limited, a third generation bank, commenced its banking operation in July, 1999. It was listed in DSE & CSE in 2003. Presently, the bank has 55 branches across Bangladesh as per last audited report. In addition, the company has a subsidiary in capital market, ONE Securities Ltd.

Key Revenue Drivers & Company Insight

Interest rate hike driven by liquidity squeeze in financial sector caused core banking business growth to decline, as YoY Net Interest Income (NII) growth reached 5.7% from 80% in 2010. Whereas gloomy capital market of 2011 shrank investment income by 9.2% vis-à-vis 115.8% growth in 2010. Although capital adequacy improved to 11.2%, asset quality deteriorated a bit as NPL climbed up to 4.47% from 3.71% in 2010.

Financial Performance

Hit by rise in interest rates and a depressed capital market, NPAT growth 2011 dropped to -32.6%, compared to capital market boom driven 159.7% growth in 2010. Whereas at present, NPAT declined by 38% YoY due to heavy loan and tax provisioning in principal.

As per un-audited nine month's accounts as on 30.09.12 (Jan'12 to Sep'12), consolidated net profit after tax (excluding non-controlling interest) was Tk. 726.538 million with consolidated EPS of Tk. 1.75 for the period of nine months as against Tk. 1181.298 million and Tk. 2.85 respectively for the same period of the previous year.