Rate challenges squeeze interest income at Bangladeshi banks

Ongoing disruptions caused by the Covid-19 pandemic has squeezed a key performance metric at Bangladeshi banks. 

Net interest income (NII) at leading lenders fell last year, following the double blow of falling rates and a regulatory interest rate cap of 9% on most loans. 

Standard Chartered Bank Bangladesh, the largest lender in the country by Tier 1 capital, saw NII decline 12% year-on-year from $204m in 2019 to $179m in 2020, while sharia-compliant Islami Bank Bangladesh saw NII decline 4% year-on-year from $362m to $348m, according to The Banker Database.

Both banks had seen NII steadily increase between 2016 and 2019, with Standard Chartered Bank Bangladesh posting a 69% rise during the period and Islami Bank Bangladesh posting a 22% rise. 

Trends identified using The Banker Database, an online database providing comprehensive financial data and insight for 4000 of the world's leading banks in 190 countries. Contact us.