Southeast Bank financial analysis: NPL 7.5% after write-offs, shortfall cleared, negative NII and no cash dividend under Tk2,000 crore rule (Oct 2026)
Southeast Bank: NPL halved to 7.5% and the Tk1,539 crore provision shortfall cleared, but net interest income turned negative in H1 2026
Write-offs of BDT 21.5bn cut classified loans from 14.82% to 7.51% of loans in 2025 and the 2024 BB-deferred shortfall is gone, yet special mention loans rose to 14.8% of the book, interest expense exceeded interest income in H1 2026, and paid-up capital below Tk2,000 crore bars cash dividends from FY2026.
For information only, not investment advice. AnalystBro accepts no responsibility for decisions made on it. Full disclaimer.
- Gross NPL fell from 14.82% to 7.51% in 2025 after BDT 21,488m of loans were written off; bad/loss loans fell from BDT 46,359m to 21,170m [1 p.88] [1 p.53] [1 p.54] →
- The 2024 provision shortfall of BDT 15,394m was deferred by BB letter of 22-May-2025; it equalled 48.9% of equity and cut 2024 book value per share from BDT 23.56 to 12.05. At Dec-2025 required and maintained provision both stood at BDT 22,673m [1 p.55] [1 p.54] [14] →
- Special mention loans rose from BDT 11,013m to BDT 55,270m (14.8% of loans) in 2025, the pool the 90-day rule can move into classification [1 p.54] [1 p.55] →
- Interest expense was 111% of interest income in H1 2026, so net interest income was BDT -1,631m; investment income was 85% of operating income [2 p.3] [14] →
- Post-bonus paid-up capital of Tk1,431 crore is below the Tk2,000 crore line in BB SPCD Circular 06, so no cash dividend can be declared for FY2026 [4 p.1] [14] →
Investment considerations: a write-off cleared the 2024 shortfall and halved NPL, but SMA loans, negative NII and the Tk2,000 crore rule now set the path
Southeast Bank PLC is a second-generation private commercial bank incorporated in 1995, with 135 branches at the end of 2024, 3,196 employees and a balance sheet of BDT 554.4bn at the end of 2025 on a consolidated basis [3 p.45] [1 p.10] [2 p.15]. It runs a conventional book with five Islamic banking branches, an offshore banking unit, and three subsidiaries: a merchant bank, a payment service provider and a South African remittance house [3 p.39] [3 p.40]. On 30 June 2026 it held deposits of BDT 466.1bn, loans of BDT 397.0bn and investments of BDT 175.3bn [2 p.1].
The bank came out of 2024 with the worst numbers in its ten-year record: gross NPL of 14.82%, group profit after tax of BDT 433m, ROE of 1.36% and a provision shortfall of BDT 15,394m that Bangladesh Bank (BB) allowed it to defer [3 p.45] [1 p.55]. In 2025 it wrote off BDT 21.5bn of loans, reported a 7.51% NPL, no shortfall, CRAR of 13.71% and group profit of BDT 3,350m [1 p.88] [1 p.12]. The board changed after August 2024 and the managing director left in 2025 [10] [12]. The questions for an investor are how much of the 2025 recovery is durable, what the negative net interest income of H1 2026 says about the franchise, and what BB's dividend rule leaves for shareholders.
Strengths an investor would weigh
- The 2024 shortfall is gone on the reported basis: required and maintained provision were both BDT 22,673m at Dec-2025, against a BDT 15,394m gap a year earlier [1 p.54] [1 p.55].
- Capital rebuilt: CRAR rose from 11.71% to 13.71% and total regulatory capital from BDT 41,536m to 50,993m in 2025, a surplus of BDT 4,488m above the requirement [1 p.88].
- Earnings recovered: group profit after tax rose from BDT 433m (2024) to 3,350m (2025) and to BDT 2,188m in H1 2026, up 64% year on year [1 p.12] [2 p.3] [14].
- Deposits kept growing through the sector's stress: +6.5% in 2024, +6.8% in 2025 and +6.1% in H1 2026 [14].
- The Islamic branches earned BDT 1,208m before tax in 2025, 27% of bank profit before tax on 7.8% of its assets [1 p.95] [1 p.96] [14].
Weaknesses an investor would weigh
- The NPL fall is a write-off, not a recovery: loans written off rose from BDT 7,606m (2024) to 21,488m (2025); the cumulative written-off stock is BDT 49,898m, all under lawsuit [1 p.53].
- Special mention loans are 14.8% of loans (BDT 55,270m), up from 3.0% a year earlier [1 p.54] [1 p.55] [14]. Under the 90-day classification rule this pool can move into NPL.
- Provisioning was set with BB in a tripartite meeting and a BB quick-summary letter dated 23-Apr-2026, which the auditor cites; BDT 5,938m of the requirement relates to loans under court stay orders [1 p.8] [1 p.54].
- Margin collapse: net interest income fell from BDT 4,021m (2024) to 2,116m (2025) and was BDT -1,631m in H1 2026; the reported cost of funds rose from 6.90% to 8.59% [1 p.12] [2 p.3] [1 p.88].
- Profit now rests on treasury income: investment income was 57.4% of 2025 operating income and 85.3% in H1 2026, funded in part by borrowings that tripled to BDT 52.4bn in six months [14] [2 p.1].
- No cash dividend for FY2026 under SPCD Circular 06 while paid-up capital is under Tk2,000 crore; authorised capital of Tk1,500 crore is itself below that line [4 p.1] [2 p.16].
Data
| Nov 25 | Dec 25 | Jan 26 | Feb 26 | Mar 26 | Apr 26 | May 26 | Jun 26 | Jul 26 | Aug 26 | Sep 26 | Oct 26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SOUTHEASTB | 8.41 | 8.60 | 8.51 | 9.07 | 9.07 | 9.25 | 9.07 | 10.30 | 10.60 | 11.60 | 11.30 | 11.90 |
| Item | Value |
|---|---|
| Price (week of 25-Oct-2026) | BDT 11.9 |
| 52-week range (adjusted) | BDT 7.3-12.9 |
| Market cap (post-bonus shares) | BDT 17.0bn |
| Shares after 7% stock dividend (derived) | 1,431.0m |
| NAV per share (Jun-2026, solo, post-bonus) | BDT 25.22 |
| P/B (Jun-2026 solo NAV) | 0.47x |
| P/E on FY2025 group EPS (post-bonus) | 5.1x |
| Gross NPL (Dec-2025, solo) | 7.51% (14.82% Dec-2024) |
| Provision shortfall | Nil at Dec-2025; BDT 15,394m at Dec-2024 (BB-deferred) |
| CRAR (Dec-2025, solo) | 13.71% (11.71% Dec-2024) |
| FY2025 dividend | 3% cash + 7% stock |
| Paid-up capital vs Tk2,000 crore rule | Tk1,431 crore post-bonus: no cash dividend from FY2026 |
| Fiscal year end | 31 December |
| Auditor (FY2025) | Shafiq Basak & Co. (unmodified, emphasis of matter) |
Business: an industrial and trade lender whose NPL rose from 3% to 15% in four years before the 2025 clean-up
Southeast Bank makes money in four ways: interest on corporate, trade and SME loans; income from government securities and shares; commission and exchange on import, export and remittance business; and small amounts from its subsidiaries [1 p.12] [3 p.434]. The loan book is industrial: of the BDT 374.4bn solo book at Dec-2025, unclassified standard loans included BDT 183.6bn of industrial credit and BDT 39.7bn of CMSME loans, against BDT 6.8bn of housing and BDT 0.8bn of consumer loans [1 p.54].
Trade is the fee franchise. Import business handled was BDT 310.2bn and exports BDT 280.3bn in 2024, with inward remittance of BDT 210.2bn [3 p.45]. Commission, exchange and brokerage peaked at BDT 6,735m in 2022, when FX margins were wide, and was BDT 4,881m in 2025 [3 p.246] [1 p.12]. The deposit base is term-heavy: fixed deposits were 72.1% of deposits at Dec-2025 and current plus savings accounts 26.9% [14].
What changed over the decade. From 2015 to 2019 the bank grew loans 10-22% a year and kept NPL between 4.3% and 6.0% [3 p.46] [14]. Loan growth then slowed to 1-5% a year from 2021, while NPL climbed from 3.10% (2020) to 9.65% (2023) and 14.82% (2024) [3 p.45]. ROE fell from 11.86% in 2015 to 1.36% in 2024 [3 p.45] [3 p.46]. The 2025 accounts reset the book: large write-offs, a cleared shortfall and a return to a 10% ROE on our calculation [14]. Underneath, the margin kept shrinking, and the balance sheet tilted towards investments funded with term deposits and borrowings.
Data
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Deposits | 210,431.00 | 229,973.00 | 269,828.00 | 298,335.00 | 329,250.00 | 359,536.00 | 376,701.00 | 371,143.00 | 386,402.00 | 411,344.00 | 439,235.00 |
| Loans | 168,878.00 | 191,866.00 | 234,317.00 | 267,672.00 | 296,753.00 | 322,251.00 | 336,329.00 | 347,744.00 | 354,353.00 | 372,907.00 | 377,259.00 |
| Investments | 58,829.00 | 61,732.00 | 62,911.00 | 65,610.00 | 77,310.00 | 97,074.00 | 113,453.00 | 98,926.00 | 113,140.00 | 123,734.00 | 123,899.00 |
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating profit before provisions | 8,034 | 8,503 | 9,062 | 9,783 | 8,983 | 8,265 | 8,671 | 10,430 | 8,858 | 11,721 | 11,978 |
| Net profit after tax | 3,069 | 2,435 | 1,169 | 2,473 | 2,509 | 2,149 | 1,784 | 1,752 | 2,134 | 433 | 3,350 |
| Gross NPL | 4.2% | 4.9% | 6.0% | 5.9% | 4.9% | 3.1% | 4.8% | 6.5% | 9.7% | 14.8% | 7.5% |
| CRAR | 11.5% | 12.2% | 10.8% | 12.4% | 11.5% | 14.3% | 13.9% | 12.8% | 13.4% | 11.6% | 13.7% |
| ROE (model) | — | 9.1% | 4.5% | 9.2% | 8.6% | 7.1% | 6.0% | 5.8% | 6.8% | 1.4% | 10.2% |
Line items: deposit costs overtook loan income, and investment income now earns the profit
Net interest income is the weakest line. It was BDT 2,481m in 2020, peaked at BDT 4,021m in 2024 and fell to BDT 2,116m in 2025 [3 p.246] [1 p.12]. Interest expense rose from 88.8% of interest income in 2020 to 93.6% in 2025 and 110.6% in H1 2026, when interest paid (BDT 17,013m) exceeded interest earned (BDT 15,381m) [2 p.3] [14]. Two things drive it. On the cost side, interest expense over average deposits rose from 4.35% (2021) to 7.33% (2025) as deposit rates rose in 2024-2025 and the deposit mix moved further into fixed deposits [14]; the bank's own cost-of-fund measure went from 6.61% (2023) to 6.90% (2024) and 8.59% (2025) [3 p.411] [1 p.88]. On the income side, interest on classified loans is taken to suspense rather than income, and interest charged to suspense reached BDT 27,738m by 2025 [1 p.53]; interest income fell 5.8% in H1 2026 even as loans grew [2 p.3] [14].
History gives the sensitivity: on 2025 average deposits of BDT 425bn, each 10bp of deposit cost was about BDT 425m of interest expense, or 13% of 2025 profit after tax [14].
Investment income carries the bank. It rose from BDT 6,751m in 2020 to BDT 11,383m in 2025 and BDT 8,533m in H1 2026 alone, up 71% on H1 2025 [3 p.246] [1 p.12] [2 p.3]. Its share of operating income went from 49.0% (2020) to 57.4% (2025) [14]. Investments jumped from BDT 123.9bn to 175.3bn in the first half of 2026 while borrowings rose from BDT 17.5bn to 52.4bn [2 p.1]: the bank is earning a carry on government securities that its loan book no longer produces. A fall in treasury yields moves this line directly.
Fees and other income were 31.9% of operating income in 2025 [14]. Commission, exchange and brokerage tracks trade volumes and FX spreads: it rose to BDT 6,735m in 2022 and has been BDT 4.9bn a year since 2024 [3 p.246] [1 p.12]. Operating expenses were BDT 7,840m in 2025, with salaries of BDT 2,908m; cost/income has held between 38.8% and 47.2% since 2020 [1 p.12] [14]. Salaries rose 34% year on year in H1 2026, to BDT 1,920m [2 p.3].
Provisions take most of operating profit. Total provisions were 62%-84% of profit before provisions in 2020-2024 and 62% in 2025 [14]. In 2025 the BDT 7,483m charge was BDT 7,178m of general provision and nil specific provision at group level, after the write-off used existing specific provisions [1 p.12] [1 p.64]. In H1 2026 provisions fell to BDT 1,576m, which explains the profit rise more than operations do [2 p.3]. Tax swings with disallowed provisions: the effective rate was 76.9% in 2024, 25.5% in 2025 and 47.9% in H1 2026 [14].
Data
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Net interest income | 2,481.00 | 2,922.00 | 3,144.00 | 2,661.00 | 4,021.00 | 2,116.00 |
| Investment income | 6,751.00 | 6,750.00 | 6,671.00 | 7,923.00 | 9,145.00 | 11,383.00 |
| Commission, exchange, brokerage | 3,536.00 | 3,906.00 | 6,735.00 | 5,260.00 | 4,893.00 | 4,881.00 |
| Other | 1,002.00 | 1,095.00 | 1,038.00 | 935.00 | 1,104.00 | 1,439.00 |
Data
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | H1-26 | |
|---|---|---|---|---|---|---|---|
| Interest expense / interest income | 0.89 | 0.85 | 0.84 | 0.88 | 0.86 | 0.94 | 1.11 |
Data
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Interest expense / avg deposits | 0.06 | 0.04 | 0.05 | 0.05 | 0.06 | 0.07 |
| BDT mn | H1 2025 | H1 2026 |
|---|---|---|
| Interest income | 16,323 | 15,381 |
| Interest paid on deposits and borrowings | 14,760 | 17,013 |
| Investment income | 4,993 | 8,533 |
| Commission, exchange and brokerage | 2,326 | 2,296 |
| Other operating income | 632 | 801 |
| Operating expenses | 3,683 | 4,222 |
| Loan provisions (general + specific) | 3,428 | 1,580 |
| Total provisions | 3,636 | 1,576 |
| Tax charge | 858 | 2,013 |
| Net profit after tax | 1,335 | 2,188 |
| Net interest income | 1,563 | -1,631 |
| Total operating income | 9,513 | 9,999 |
| Profit before provisions | 5,830 | 5,776 |
| Profit before tax | 2,194 | 4,201 |
| Interest expense / interest income | 90.4% | 110.6% |
| Investment income / operating income | 52.5% | 85.3% |
| Effective tax rate | 39.1% | 47.9% |
| Profit growth | — | 63.8% |
From the Half-years tab of the model.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Cost / income | 40.0% | 40.9% | 40.7% | 47.2% | 38.8% | 39.6% |
| Credit cost | 1.6% | 1.4% | 1.6% | 1.5% | 1.9% | 1.9% |
| Provisions / profit before provisions | 61.8% | 62.4% | 63.2% | 60.3% | 84.0% | 62.5% |
| Effective tax rate | 31.9% | 45.2% | 54.3% | 39.3% | 76.9% | 25.5% |
Asset quality: a BDT 21.5bn write-off halved NPL and closed the BB-deferred shortfall, while SMA loans rose to 15% of the book
Gross NPL was 3.10% in 2020, rose every year to 14.82% (BDT 54,814m) in 2024, and fell to 7.51% (BDT 28,128m) in 2025 [3 p.45] [1 p.88]. Bad/loss loans were 85% of classified loans in 2024 [14]. The fall came from write-offs: loans written off in the year rose from BDT 7,606m to BDT 21,488m, and BDT 18,211m of debts were written off against specific provision, so the specific provision balance fell by BDT 18,957m [1 p.53]. Recoveries of previously written-off loans were BDT 997m in 2025 and BDT 1,616m in 2024 [1 p.53].
The provisioning history matters for book value. At Dec-2024 the bank needed BDT 48,104m of provision (BDT 31,865m on loans, BDT 9,942m for stay-order loans, BDT 6,297m for rescheduled loans) and held BDT 32,710m, a shortfall of BDT 15,394m that BB allowed it to defer by letter DOS (CAMS) 1157/41(Dividend)/2025-3116 of 22-May-2025 [1 p.55]. On solo equity of BDT 31,507m, the shortfall was 48.9%: book value per share would have been BDT 12.05 rather than 23.56, before any tax effect [14].
At Dec-2025 the requirement was BDT 22,673m (BDT 5,465m general on unclassified and SMA loans, BDT 11,072m specific, BDT 5,938m for stay-order loans, BDT 198m for rescheduled loans) and the bank held exactly that [1 p.54]. The auditor states that provisions were set in line with a tripartite meeting of BB, management and the auditor, summarised in a BB quick-summary letter of 23-Apr-2026, and adds an emphasis of matter on the BB classification and provisioning basis; the opinion is unmodified [1 p.2] [1 p.8]. So the clean 2025 number is a reported, BB-agreed one; there is no separate measured shortfall to deduct. Specific provision plus the interest-suspense balance was 138% of classified loans; part of that suspense balance may relate to loans already written off, so this overstates loss absorption, and the F01 net-NPL haircut adds nothing [14].
The pipeline is the concern. Special mention loans rose from BDT 11,013m to BDT 55,270m in 2025, from 3.0% to 14.8% of loans [1 p.54] [1 p.55]. Sub-standard (BDT 6,561m) and doubtful (BDT 396m) loans are smaller, but their base for provision is reduced by eligible security [1 p.54]. The H1 2026 statements do not include the classification table, so the Jun-2026 NPL is not known from filings [2 p.15]. Against peers' own 2025 filings, Southeast's 7.51% NPL was 3.5pp above the median of NCC, Prime, Jamuna and Bank Asia [14].
Data
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross NPL | 0.04 | 0.05 | 0.06 | 0.06 | 0.05 | 0.03 | 0.05 | 0.07 | 0.10 | 0.15 | 0.08 |
| 2024 | 2025 | |
|---|---|---|
| Specific provision (SS, DF, BL) | 29,041 | 11,072 |
| Stay-order loans | 9,942 | 5,938 |
| Rescheduled loans | 6,297 | 198 |
| Total required | 48,104 | 22,673 |
| Total maintained | 32,710 | 22,673 |
| Shortfall | 15,394 | 0 |
| Shortfall / equity | 48.9% | 0.0% |
| 2024 | 2025 | |
|---|---|---|
| Equity (solo) | 31,507 | 34,366 |
| Less shortfall | 15,394 | 0 |
| Equity after shortfall (pre-tax) | 16,113 | 34,366 |
| Book value per share | 23.56 | 25.70 |
| After shortfall | 12.05 | 25.70 |
| BDT mn | FY2024 | FY2025 |
|---|---|---|
| Loans and advances (solo) | 369,987 | 374,424 |
| Special mention account | 11,013 | 55,270 |
| Sub-standard | 7,874 | 6,561 |
| Doubtful | 581 | 396 |
| Bad/loss | 46,359 | 21,170 |
| Specific provision required | 29,041 | 11,072 |
| Required provision for stay-order loans | 9,942 | 5,938 |
| Required provision for rescheduled loans | 6,297 | 198 |
| Total required provision | 48,104 | 22,673 |
| Total provision maintained | 32,710 | 22,673 |
| Interest suspense (balance) | 22,520 | 27,738 |
| Loans written off in the year | 7,606 | 21,488 |
| Cumulative loans written off | 30,182 | 49,898 |
| Shareholders' equity (solo) | 31,507 | 34,366 |
| Shares outstanding (mn) | 1,337.4 | 1,337.4 |
| Classified loans (SS + DF + BL) | 54,814 | 28,128 |
| Gross NPL ratio | 14.8% | 7.5% |
| SMA / loans | 3.0% | 14.8% |
| Bad/loss share of classified | 84.6% | 75.3% |
| Provision shortfall (required - maintained) | 15,394 | 0 |
| Shortfall / equity | 48.9% | 0.0% |
| Equity after the shortfall (pre-tax) | 16,113 | 34,366 |
| Book value per share (solo) | 23.56 | 25.70 |
| Book value per share after the shortfall | 12.05 | 25.70 |
| (Specific provision + interest suspense) / classified | 94.1% | 138.0% |
| Net NPL after specific provision and suspense (floor 0) | 3,253 | 0 |
| Provision maintained / loans | 8.8% | 6.1% |
From the Asset quality tab of the model.
| 2024 | 2025 | |
|---|---|---|
| Written off in year | 7,606 | 21,488 |
| Cumulative written off | 30,182 | 49,898 |
| Recovered from written-off loans | 1,616 | 997 |
| Interest charged to suspense | 22,520 | 27,738 |
Capital and dividends: CRAR back to 13.7%, but Tk1,431 crore of paid-up capital rules out cash dividends from FY2026
CRAR has stayed above 10% in every year since 2015 but was below today's 12.5% requirement (10% plus the conservation buffer) in 2015 and 2019 (11.52% each), 2017 (10.84%), 2018 (12.38%) and 2024 (11.64% group, 11.71% solo) [3 p.45] [3 p.46] [1 p.88]. In 2025 total capital rose to BDT 50,993m and CRAR to 13.71%, a surplus of BDT 4,500m above 12.5% on implied risk-weighted assets of BDT 371,941m [1 p.88] [14]. Capital includes BDT 5.0bn of subordinated bonds and a BDT 5.0bn perpetual bond; the subordinated bonds amortise (BDT 8.0bn at Dec-2024) [1 p.60].
Dividends followed the cycle: 15-20% cash in 2015-2016, stock-only in 2017-2018, mixed cash and stock in 2019-2023, nothing for 2024 and 3% cash plus 7% stock for 2025 [3 p.45] [3 p.46] [1 p.88]. The 2025 dividend was declared once the 2024 deferral had been cleared: the 2025 accounts show no shortfall outstanding [1 p.54].
From FY2026 the binding rule is SPCD Circular 06 of 23-May-2026: a bank with paid-up capital below Tk2,000 crore cannot pay any cash dividend, and banks that can must keep cash to at most 50% of the total dividend; it applies to the year ending 31-Dec-2026 and later [4 p.1]. Southeast's paid-up capital is Tk1,337 crore before and about Tk1,431 crore after the 7% FY2025 bonus [2 p.16] [14]. It needs 40% more capital, BDT 5,690m; that is 3.5 years of 10% stock dividends or 4.9 years at the FY2025 rate [14]. Authorised capital is Tk1,500 crore, so shareholders must first approve an increase [2 p.16]. More shares also dilute per-share earnings.
Data
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CRAR | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.14 | 0.14 | 0.13 | 0.13 | 0.12 | 0.14 |
| Requirement | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
Data
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 0.15 | 0.20 | 0.00 | 0.00 | 0.07 | 0.10 | 0.08 | 0.06 | 0.06 | 0.00 | 0.03 |
| Stock | 0.00 | 0.00 | 0.15 | 0.10 | 0.03 | 0.00 | 0.04 | 0.04 | 0.04 | 0.00 | 0.07 |
| BDT mn | Value |
|---|---|
| Paid-up capital, Jun-2026 (pre 7% bonus) | 13,374 |
| Stock dividend for FY2025 | 7% |
| SPCD C06 threshold for any cash dividend | 20,000 |
| Authorised capital | 15,000 |
| Total regulatory capital, Dec-2025 (solo) | 50,993 |
| CRAR, Dec-2025 (solo) | 13.7% |
| FY2025 group profit after tax | 3,350 |
| Paid-up capital after the 7% bonus | 14,310 |
| Shortfall to Tk2,000 crore | 5,690 |
| New capital needed, % of post-bonus paid-up | 39.8% |
| Years of 10% stock dividends to reach it | 3.5 |
| Years of 7% stock dividends (the FY2025 rate) | 4.9 |
| Authorised capital below the threshold by | 5,000 |
| Risk-weighted assets implied | 371,941 |
| Capital above 12.5% | 4,500 |
| Shortfall to threshold / FY2025 profit (years of full retention) | 1.7 |
From the Capital and dividend tab of the model.
Ratios: ROE back to 10% in 2025, but NPL and funding cost sit above peers
Returns: ROE on our average-equity basis was 9.1% in 2016, 8.6% in 2019, between 5.8% and 6.8% in 2021-2023, 1.4% in 2024 and 10.2% in 2025 [14]. ROA was 0.61% in 2025. The 2025 recovery is mostly lower specific provisions and treasury income, not core margin [1 p.12]. Growth: deposits grew 6.8% in 2025 against loans 1.2%, so loans/deposits fell to 85.9% [14]. Leverage: equity was 6.2% of assets, down from 10.4% in 2015 [14].
Peers on the same basis (each bank's own 2025 filing): Southeast's NPL of 7.51% compares with 4.12% at NCC, 2.73% at Prime, 3.94% at Jamuna and 8.38% at Bank Asia; its CRAR of 13.71% with 15.54% at NCC and 15.32% at Bank Asia; and its 8.59% cost of fund with NCC's 6.57% cost of deposits and borrowings and Jamuna's 6.70% cost of deposits [5 p.183] [5 p.184] [6 p.286] [7 p.83] [8 p.156] [1 p.88]. Definitions differ slightly across banks; the cost gap of about 2.0pp is large enough to survive that [14].
Data
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.09 | 0.04 | 0.09 | 0.09 | 0.07 | 0.06 | 0.06 | 0.07 | 0.01 | 0.10 |
| ROA | 0.01 | 0.00 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 |
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| NII share of operating income | 18.0% | 19.9% | 17.9% | 15.9% | 21.0% | 10.7% |
| Investment income share | 49.0% | 46.0% | 37.9% | 47.2% | 47.7% | 57.4% |
| Loans / deposits | 89.6% | 89.3% | 93.7% | 91.7% | 90.7% | 85.9% |
| Deposit growth | 9.2% | 4.8% | -1.5% | 4.1% | 6.5% | 6.8% |
| Loan growth | 8.6% | 4.4% | 3.4% | 1.9% | 5.2% | 1.2% |
| Equity / assets | 6.4% | 6.0% | 6.2% | 6.3% | 5.8% | 6.2% |
| Payout (paid-up basis) | 55.3% | 80.0% | 70.6% | 60.3% | 0.0% | 39.9% |
| BDT mn | Value |
|---|---|
| SOUTHEASTB gross NPL | 7.5% |
| NCCBANK gross NPL | 4.1% |
| PRIMEBANK gross NPL | 2.7% |
| JAMUNABANK gross NPL | 3.9% |
| BANKASIA gross NPL | 8.4% |
| SOUTHEASTB CRAR | 13.7% |
| NCCBANK CRAR | 15.5% |
| BANKASIA CRAR | 15.3% |
| SOUTHEASTB cost of fund (reported) | 8.6% |
| NCCBANK cost of deposits and borrowings | 6.6% |
| JAMUNABANK cost of deposits | 6.7% |
| SOUTHEASTB NPL minus peer median (NCC, Prime, Jamuna, Bank Asia) | 3.5% |
| SOUTHEASTB cost of fund minus NCC and Jamuna average | 2.0% |
From the Peers tab of the model.
Balance sheet: fixed deposits are 73% of funding and borrowings tripled in H1 2026 to fund securities
Deposits were BDT 466.1bn at Jun-2026, of which fixed deposits BDT 339.1bn (72.8%) and current plus savings 25.8%, down from 30.0% at Dec-2024 [2 p.1] [14]. Current deposits fell from BDT 79.1bn to 71.5bn over those eighteen months while fixed deposits rose by BDT 54.4bn [14]. Loans/deposits was 85.2% at Jun-2026, under the 87% cap. Borrowings rose from BDT 17.5bn to BDT 52.4bn in H1 2026, mostly other borrowings of BDT 42.4bn, and investments from BDT 123.9bn to 175.3bn [2 p.1]. Equity was 5.8% of assets.
Cash flow: H1 2026 net operating cash flow was BDT 52,674m (consolidated), which the bank attributes to higher borrowings and deposits from banks and customers [2 p.16]. For a bank this measures funding movements rather than earnings quality. Contingent liabilities were BDT 186.6bn at Jun-2026, mainly acceptances (BDT 75.9bn) and letters of credit (BDT 53.6bn) [2 p.2]. Directors' and officers' loans were BDT 2,049m at Dec-2025 [1 p.53].
Data
| Dec-24 | Dec-25 | Jun-26 | |
|---|---|---|---|
| Current | 79,106.00 | 72,826.00 | 71,488.00 |
| Savings | 44,214.00 | 45,494.00 | 48,934.00 |
| Fixed | 284,711.00 | 316,768.00 | 339,140.00 |
| Bills payable | 3,313.00 | 4,147.00 | 6,579.00 |
| BDT mn | Dec-2024 | Dec-2025 | Jun-2026 |
|---|---|---|---|
| Current deposits | 79,106 | 72,826 | 71,488 |
| Bills payable | 3,313 | 4,147 | 6,579 |
| Savings deposits | 44,214 | 45,494 | 48,934 |
| Fixed deposits | 284,711 | 316,768 | 339,140 |
| Borrowings incl. sub-debt and perpetual bonds | 34,873 | 17,485 | 52,359 |
| Loans and advances | 372,907 | 377,259 | 396,974 |
| Investments | 123,734 | 123,899 | 175,290 |
| Total assets | 545,859 | 554,425 | 628,430 |
| Shareholders' equity | 31,544 | 34,419 | 36,328 |
| Deposits | 411,344 | 439,235 | 466,141 |
| Current + savings / deposits | 30.0% | 26.9% | 25.8% |
| Fixed deposits / deposits | 69.2% | 72.1% | 72.8% |
| Loans / deposits | 90.7% | 85.9% | 85.2% |
| Investments / total assets | 22.7% | 22.3% | 27.9% |
| Borrowings / total assets | 6.4% | 3.2% | 8.3% |
| Equity / total assets | 5.8% | 6.2% | 5.8% |
| Deposit growth (period) | — | 6.8% | 6.1% |
From the Balance sheet tab of the model.
Islamic windows: 8% of assets and 27% of 2025 bank profit before tax
Southeast runs Islamic banking through five Islamic branches, a sub-branch, 84 agent outlets and Islamic banking service desks in 130 conventional branches [3 p.267]. The Islamic branches publish their own statements: total assets of BDT 43.1bn, deposits of BDT 36.8bn (BDT 30.0bn mudaraba fixed) and investments (financing) of BDT 27.9bn at Dec-2025 [1 p.95]. Profit on investments was BDT 3,776m and profit paid to depositors BDT 2,746m, a net BDT 1,030m; with fees, operating income was BDT 1,360m and profit before tax BDT 1,208m after a net provision release of BDT 105m [1 p.96].
Those branches made 27% of the bank's 2025 profit before tax on 7.8% of its assets, and, unlike the whole bank, their net financing margin was positive: profit paid was 73% of profit earned, against 94% for the group [1 p.96] [14]. The 2025 figure is flattered by the provision release; in 2024 the same branches made BDT 244m before tax [1 p.96]. Their investment/deposit ratio was 75.8% [14].
| BDT mn | FY2024 | FY2025 |
|---|---|---|
| Islamic branches: total assets | 40,030 | 43,061 |
| Islamic branches: deposits | 33,817 | 36,774 |
| Islamic branches: investments (financing) | 25,140 | 27,872 |
| Islamic branches: total operating income | 958 | 1,360 |
| Islamic branches: profit before tax | 244 | 1,208 |
| Bank (solo) total assets | 544,153 | 551,643 |
| Bank (solo) profit before tax | 1,900 | 4,444 |
| SEBL Capital Services: net profit | -1,097 | — |
| Telecash: net profit | 228 | — |
| Southeast Exchange (South Africa): net profit | 31 | — |
| Group net profit | 433 | 3,350 |
| Bank (solo) net profit | 500 | 3,344 |
| Islamic branches share of bank assets | 7.4% | 7.8% |
| Islamic branches share of bank PBT | 12.8% | 27.2% |
| Islamic investment / deposit ratio | 74.3% | 75.8% |
| Group minus solo net profit (subsidiaries and eliminations) | -67 | 6 |
From the Islamic and subsidiaries tab of the model.
Subsidiaries: a loss-making merchant bank, a profitable payments unit, and no material group contribution in 2025
Southeast Bank Capital Services Ltd (merchant bank, set up 2010, paid-up Tk550 crore, 99.82% owned) is the largest. It lost BDT 1,097m in 2024 after BDT 1,081m of provisions against loans and other assets, and the bank booked a BDT 916m impairment on its BDT 5,490m investment [3 p.40] [3 p.434] [3 p.375]. Telecash Ltd (payment service provider, incorporated 2023, 90% owned) earned BDT 228m in 2024, and Southeast Exchange Company (South Africa) Pty Ltd (remittance, 2014, 100%) BDT 31m [3 p.40] [3 p.434]. All three were consolidated in 2025 [1 p.8].
In 2025 group profit after tax was BDT 3,350m against bank profit of BDT 3,344m, so subsidiaries and eliminations added a net BDT 6m [1 p.12] [1 p.88] [14]. None is material to group value on these numbers; the risk is the merchant bank's margin-loan book if share prices fall again. The separate 2025 subsidiary accounts are not in the filing in our corpus.
| Subsidiary | Business | Owned | 2024 net profit |
|---|---|---|---|
| Southeast Bank Capital Services | Merchant bank | 99.82% | -1,097 |
| Telecash | Payment service provider | 90% | 228 |
| Southeast Exchange (South Africa) | Remittance | 100% | 31 |
Governance: a board change in 2024, a forced-leave MD in 2025 and BB-agreed provisioning
Board. According to The Daily Star (30-Sep-2024), the board elected founding chairman M A Kashem as chairman at its 743rd meeting, ending Alamgir Kabir's chairmanship since 2004; Kashem and other directors had been removed from the board in 2022 and were regaining their seats after the August 2024 change of government [10]. The same report describes earlier allegations by founder directors against the former chairman; these are allegations reported by a single outlet. We found no BB order dissolving or reconstituting the board in the filings or the allowlisted outlets we read; the change was made by the board itself.
Management. The Daily Star reported on 5-May-2025 that the new board sent managing director Nuruddin Md Sadeque Hossain on three months' leave pending an audit of alleged irregularities in the former chairman's tenure [11]. The Financial Express reported on 31-Jul-2025 that he resigned on health grounds, with additional managing director Abidur Rahman Chowdhury acting as MD [12]. Each of these is a single-outlet report.
BB actions recorded in the filings: the BB letter of 22-May-2025 deferring the 2024 provision shortfall of Tk1,539.42 crore [1 p.55], and the tripartite meeting and BB quick-summary letter of 23-Apr-2026 on which 2025 provisions were set [1 p.8]. Auditor: Shafiq Basak & Co. gave an unmodified opinion on 2025 with an emphasis of matter on the BB classification and provisioning basis and a key audit matter on loan provisions [1 p.1] [1 p.2]. An EGM record date was set for 21-Jun-2026 [9]; its agenda is not in the sources we read.
| Date | Event | Source |
|---|---|---|
| 2022 | M A Kashem and other directors removed from the board | Daily Star (single outlet) |
| 30-Sep-2024 | M A Kashem elected chairman; Alamgir Kabir era ends | Daily Star (single outlet) |
| 5-May-2025 | MD sent on three months' leave pending audit | Daily Star (single outlet) |
| 22-May-2025 | BB defers the 2024 shortfall of Tk1,539.42 crore | AR2025 p.55 (filing) |
| 28-Jul-2025 | MD resignation on health grounds | Financial Express (single outlet) |
| 23-Apr-2026 | BB quick-summary letter on 2025 provisions | AR2025 p.8 (filing) |
| 21-Jun-2026 | EGM record date | DSE |
What's next: Q3 results, SMA migration, stay-order cases, treasury yields and a stock-only FY2026 dividend
Q3 2026 results: the board meeting for Q3 was set for 29-Oct-2026 [9]; the statements are not yet in our filings. They will show whether net interest income stays negative and whether provisions stay low.
FY2026 classification: with SMA at BDT 55.3bn and the 90-day rule in force, the FY2026 classification table is the test of the 2025 clean-up [1 p.54]. Migration raises specific provisions and lowers interest income (more to suspense).
Stay-order loans: BDT 5,938m of 2025 provision relates to loans under court stay orders [1 p.54]; court outcomes move the provision and the NPL count.
Treasury yields: with investment income at 85% of H1 2026 operating income and borrowings funding part of the BDT 175bn portfolio, lower T-bill and bond yields cut the largest income line [14].
FY2026 dividend: under SPCD C06 the FY2026 dividend can only be stock unless paid-up capital reaches Tk2,000 crore; any increase in authorised capital or a rights issue would show first in an EGM notice [4 p.1].
Risks: SMA migration, deposit costs and treasury yields matter most
Each risk below is tied to the line it moves. Size them against 2025 profit before provisions of BDT 11,978m and solo equity of BDT 34.4bn [14].
| Risk | Line it moves | Evidence |
|---|---|---|
| SMA migration to NPL | Specific provisions, interest income | SMA BDT 55.3bn = 14.8% of loans |
| Deposit costs stay high | Interest expense, NII | NII BDT -1,631m in H1 2026; FDs 73% of deposits |
| Falling treasury yields | Investment income | 85% of H1 2026 operating income |
| Borrowing-funded securities | Interest expense, liquidity | Borrowings BDT 17.5bn to 52.4bn in H1 2026 |
| Stay-order loans | Provisions, NPL | BDT 5,938m required provision (2025) |
| BB-agreed provisioning revisited | Equity, CRAR | 2024 shortfall was 48.9% of equity |
| Dividend rule | Shareholder cash returns | No cash dividend below Tk2,000 crore |
| Merchant bank margin loans | Group profit | BDT -1,097m in 2024 |
| Governance follow-up | Provisions, reputation | Audit of former chairman's tenure (Daily Star) |
Key questions: NPL durability, the margin, treasury dependence and the route to Tk2,000 crore
Key questions and the signposts that answer them
- Is 7.5% NPL durable? Signpost: classified and SMA loans in the FY2026 notes (SMA BDT 55.3bn at Dec-2025).
- Can net interest income turn positive? Signpost: interest expense below interest income in Q3 and FY2026 (111% in H1 2026).
- How much of profit is treasury? Signpost: investment income share of operating income (85% in H1 2026).
- Will the 2025 provisioning stand? Signpost: required vs maintained provision and the auditor's emphasis of matter in FY2026.
- How will the bank reach Tk2,000 crore paid-up? Signpost: an authorised-capital increase, rights issue or stock dividends in the FY2026 declaration.
SOUTHEASTB at BDT 11.9 trades at 0.47x Jun-2026 solo NAV and 5.1x FY2025 group EPS, both on the post-bonus share count [13] [14]. The company reported year-end P/E of 23.94x for 2024 and 3.62x for 2025 [1 p.88]. These are facts about the price, not a view on it.
The model
History
| BDT mn | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Paid-up capital | 9,170 | 9,170 | 9,170 | 10,545 | 11,599 | 11,889 | 11,889 | 12,365 | 12,860 | 13,374 | 13,374 |
| Deposits | 210,431 | 229,973 | 269,828 | 298,335 | 329,250 | 359,536 | 376,701 | 371,143 | 386,402 | 411,344 | 439,235 |
| Loans and advances | 168,878 | 191,866 | 234,317 | 267,672 | 296,753 | 322,251 | 336,329 | 347,744 | 354,353 | 372,907 | 377,259 |
| Investments | 58,829 | 61,732 | 62,911 | 65,610 | 77,310 | 97,074 | 113,453 | 98,926 | 113,140 | 123,734 | 123,899 |
| Total assets | 260,718 | 291,798 | 339,288 | 381,576 | 422,313 | 465,293 | 495,842 | 493,093 | 510,864 | 545,859 | 554,425 |
| NAV per share (reported, BDT) | 29.67 | 28.93 | 28.16 | 26.66 | 26.29 | 24.98 | 25.22 | 24.87 | 24.92 | 23.59 | 25.74 |
| Interest income | — | — | — | — | — | 22,250 | 18,922 | 20,187 | 22,048 | 29,120 | 33,296 |
| Interest paid on deposits and borrowings | — | — | — | — | — | 19,769 | 16,001 | 17,043 | 19,387 | 25,099 | 31,180 |
| Investment income | — | — | — | — | — | 6,751 | 6,750 | 6,671 | 7,923 | 9,145 | 11,383 |
| Commission, exchange and brokerage | — | — | — | — | — | 3,536 | 3,906 | 6,735 | 5,260 | 4,893 | 4,881 |
| Other operating income | — | — | — | — | — | 1,002 | 1,095 | 1,038 | 935 | 1,104 | 1,439 |
| Operating expenses | — | — | — | — | — | 5,506 | 6,002 | 7,157 | 7,922 | 7,442 | 7,840 |
| Operating profit before provisions (reported) | 8,034 | 8,503 | 9,062 | 9,783 | 8,983 | 8,265 | 8,671 | 10,430 | 8,858 | 11,721 | 11,978 |
| Loan provisions (general + specific) | — | — | — | — | — | 5,026 | 4,736 | 5,423 | 5,096 | 6,762 | 7,178 |
| Total provisions | — | — | — | — | — | 5,109 | 5,413 | 6,593 | 5,344 | 9,848 | 7,484 |
| Tax charge | — | — | — | — | — | 1,007 | 1,474 | 2,085 | 1,380 | 1,441 | 1,144 |
| Net profit after tax (group) | 3,069 | 2,435 | 1,169 | 2,473 | 2,509 | 2,149 | 1,784 | 1,752 | 2,134 | 433 | 3,350 |
| Gross NPL ratio (reported) | 4.2% | 4.9% | 6.0% | 5.9% | 4.9% | 3.1% | 4.8% | 6.5% | 9.7% | 14.8% | 7.5% |
| CRAR (reported) | 11.5% | 12.2% | 10.8% | 12.4% | 11.5% | 14.3% | 13.9% | 12.8% | 13.4% | 11.6% | 13.7% |
| Total regulatory capital (Tier-1 + Tier-2) | 28,510 | 34,056 | 33,765 | 38,860 | 36,093 | 40,373 | 41,327 | 41,127 | 45,940 | 41,582 | 50,993 |
| Cash dividend (% of par) | 15.0% | 20.0% | 0.0% | 0.0% | 7.5% | 10.0% | 8.0% | 6.0% | 6.0% | 0.0% | 3.0% |
| Stock dividend (% of par) | 0.0% | 0.0% | 15.0% | 10.0% | 2.5% | 0.0% | 4.0% | 4.0% | 4.0% | 0.0% | 7.0% |
| Ratios | |||||||||||
| Shareholders' equity (NAV per share x shares) | 27,206 | 26,527 | 25,821 | 28,113 | 30,495 | 29,700 | 29,985 | 30,752 | 32,046 | 31,549 | 34,425 |
| Net interest income | — | — | — | — | — | 2,481 | 2,922 | 3,144 | 2,661 | 4,021 | 2,116 |
| Total operating income | — | — | — | — | — | 13,771 | 14,673 | 17,587 | 16,779 | 19,163 | 19,818 |
| Profit before provisions | — | — | — | — | — | 8,265 | 8,671 | 10,430 | 8,858 | 11,721 | 11,978 |
| Profit before tax | — | — | — | — | — | 3,156 | 3,258 | 3,837 | 3,514 | 1,874 | 4,495 |
| NII share of operating income | — | — | — | — | — | 18.0% | 19.9% | 17.9% | 15.9% | 21.0% | 10.7% |
| Investment income share of operating income | — | — | — | — | — | 49.0% | 46.0% | 37.9% | 47.2% | 47.7% | 57.4% |
| Fee and other income share of operating income | — | — | — | — | — | 33.0% | 34.1% | 44.2% | 36.9% | 31.3% | 31.9% |
| Interest expense / interest income | — | — | — | — | — | 88.8% | 84.6% | 84.4% | 87.9% | 86.2% | 93.6% |
| Interest expense / average deposits | — | — | — | — | — | 5.7% | 4.3% | 4.6% | 5.1% | 6.3% | 7.3% |
| Cost / income | — | — | — | — | — | 40.0% | 40.9% | 40.7% | 47.2% | 38.8% | 39.6% |
| Credit cost (loan provisions / avg loans) | — | — | — | — | — | 1.6% | 1.4% | 1.6% | 1.5% | 1.9% | 1.9% |
| Provisions / profit before provisions | — | — | — | — | — | 61.8% | 62.4% | 63.2% | 60.3% | 84.0% | 62.5% |
| Effective tax rate | — | — | — | — | — | 31.9% | 45.2% | 54.3% | 39.3% | 76.9% | 25.5% |
| ROE (avg equity) | — | 9.1% | 4.5% | 9.2% | 8.6% | 7.1% | 6.0% | 5.8% | 6.8% | 1.4% | 10.2% |
| ROA (avg assets) | — | 0.9% | 0.4% | 0.7% | 0.6% | 0.5% | 0.4% | 0.4% | 0.4% | 0.1% | 0.6% |
| Deposit growth | — | 9.3% | 17.3% | 10.6% | 10.4% | 9.2% | 4.8% | -1.5% | 4.1% | 6.5% | 6.8% |
| Loan growth | — | 13.6% | 22.1% | 14.2% | 10.9% | 8.6% | 4.4% | 3.4% | 1.9% | 5.2% | 1.2% |
| Loans / deposits | 80.3% | 83.4% | 86.8% | 89.7% | 90.1% | 89.6% | 89.3% | 93.7% | 91.7% | 90.7% | 85.9% |
| Investments / total assets | 22.6% | 21.2% | 18.5% | 17.2% | 18.3% | 20.9% | 22.9% | 20.1% | 22.1% | 22.7% | 22.3% |
| Equity / total assets | 10.4% | 9.1% | 7.6% | 7.4% | 7.2% | 6.4% | 6.0% | 6.2% | 6.3% | 5.8% | 6.2% |
| Classified loans implied (NPL ratio x loans) | 7,177 | 9,382 | 14,036 | 15,712 | 14,452 | 9,990 | 16,177 | 22,742 | 34,195 | 55,265 | 28,332 |
| Risk-weighted assets implied (capital / CRAR) | 247,479 | 280,299 | 311,486 | 313,894 | 313,310 | 281,342 | 298,175 | 322,561 | 342,581 | 357,234 | 371,941 |
| Total dividend / profit (paid-up basis) | 44.8% | 75.3% | 117.7% | 42.6% | 46.2% | 55.3% | 80.0% | 70.6% | 60.3% | 0.0% | 39.9% |
Half-years
| BDT mn | H1 2025 | H1 2026 |
|---|---|---|
| Interest income | 16,323 | 15,381 |
| Interest paid on deposits and borrowings | 14,760 | 17,013 |
| Investment income | 4,993 | 8,533 |
| Commission, exchange and brokerage | 2,326 | 2,296 |
| Other operating income | 632 | 801 |
| Operating expenses | 3,683 | 4,222 |
| Loan provisions (general + specific) | 3,428 | 1,580 |
| Total provisions | 3,636 | 1,576 |
| Tax charge | 858 | 2,013 |
| Net profit after tax | 1,335 | 2,188 |
| Net interest income | 1,563 | -1,631 |
| Total operating income | 9,513 | 9,999 |
| Profit before provisions | 5,830 | 5,776 |
| Profit before tax | 2,194 | 4,201 |
| Interest expense / interest income | 90.4% | 110.6% |
| Investment income / operating income | 52.5% | 85.3% |
| Effective tax rate | 39.1% | 47.9% |
| Profit growth | — | 63.8% |
Balance sheet
| BDT mn | Dec-2024 | Dec-2025 | Jun-2026 |
|---|---|---|---|
| Current deposits | 79,106 | 72,826 | 71,488 |
| Bills payable | 3,313 | 4,147 | 6,579 |
| Savings deposits | 44,214 | 45,494 | 48,934 |
| Fixed deposits | 284,711 | 316,768 | 339,140 |
| Borrowings incl. sub-debt and perpetual bonds | 34,873 | 17,485 | 52,359 |
| Loans and advances | 372,907 | 377,259 | 396,974 |
| Investments | 123,734 | 123,899 | 175,290 |
| Total assets | 545,859 | 554,425 | 628,430 |
| Shareholders' equity | 31,544 | 34,419 | 36,328 |
| Deposits | 411,344 | 439,235 | 466,141 |
| Current + savings / deposits | 30.0% | 26.9% | 25.8% |
| Fixed deposits / deposits | 69.2% | 72.1% | 72.8% |
| Loans / deposits | 90.7% | 85.9% | 85.2% |
| Investments / total assets | 22.7% | 22.3% | 27.9% |
| Borrowings / total assets | 6.4% | 3.2% | 8.3% |
| Equity / total assets | 5.8% | 6.2% | 5.8% |
| Deposit growth (period) | — | 6.8% | 6.1% |
Asset quality
| BDT mn | FY2024 | FY2025 |
|---|---|---|
| Loans and advances (solo) | 369,987 | 374,424 |
| Special mention account | 11,013 | 55,270 |
| Sub-standard | 7,874 | 6,561 |
| Doubtful | 581 | 396 |
| Bad/loss | 46,359 | 21,170 |
| Specific provision required | 29,041 | 11,072 |
| Required provision for stay-order loans | 9,942 | 5,938 |
| Required provision for rescheduled loans | 6,297 | 198 |
| Total required provision | 48,104 | 22,673 |
| Total provision maintained | 32,710 | 22,673 |
| Interest suspense (balance) | 22,520 | 27,738 |
| Loans written off in the year | 7,606 | 21,488 |
| Cumulative loans written off | 30,182 | 49,898 |
| Shareholders' equity (solo) | 31,507 | 34,366 |
| Shares outstanding (mn) | 1,337.4 | 1,337.4 |
| Classified loans (SS + DF + BL) | 54,814 | 28,128 |
| Gross NPL ratio | 14.8% | 7.5% |
| SMA / loans | 3.0% | 14.8% |
| Bad/loss share of classified | 84.6% | 75.3% |
| Provision shortfall (required - maintained) | 15,394 | 0 |
| Shortfall / equity | 48.9% | 0.0% |
| Equity after the shortfall (pre-tax) | 16,113 | 34,366 |
| Book value per share (solo) | 23.56 | 25.70 |
| Book value per share after the shortfall | 12.05 | 25.70 |
| (Specific provision + interest suspense) / classified | 94.1% | 138.0% |
| Net NPL after specific provision and suspense (floor 0) | 3,253 | 0 |
| Provision maintained / loans | 8.8% | 6.1% |
Capital and dividend
| BDT mn | Value |
|---|---|
| Paid-up capital, Jun-2026 (pre 7% bonus) | 13,374 |
| Stock dividend for FY2025 | 7% |
| SPCD C06 threshold for any cash dividend | 20,000 |
| Authorised capital | 15,000 |
| Total regulatory capital, Dec-2025 (solo) | 50,993 |
| CRAR, Dec-2025 (solo) | 13.7% |
| FY2025 group profit after tax | 3,350 |
| Paid-up capital after the 7% bonus | 14,310 |
| Shortfall to Tk2,000 crore | 5,690 |
| New capital needed, % of post-bonus paid-up | 39.8% |
| Years of 10% stock dividends to reach it | 3.5 |
| Years of 7% stock dividends (the FY2025 rate) | 4.9 |
| Authorised capital below the threshold by | 5,000 |
| Risk-weighted assets implied | 371,941 |
| Capital above 12.5% | 4,500 |
| Shortfall to threshold / FY2025 profit (years of full retention) | 1.7 |
Islamic and subsidiaries
| BDT mn | FY2024 | FY2025 |
|---|---|---|
| Islamic branches: total assets | 40,030 | 43,061 |
| Islamic branches: deposits | 33,817 | 36,774 |
| Islamic branches: investments (financing) | 25,140 | 27,872 |
| Islamic branches: total operating income | 958 | 1,360 |
| Islamic branches: profit before tax | 244 | 1,208 |
| Bank (solo) total assets | 544,153 | 551,643 |
| Bank (solo) profit before tax | 1,900 | 4,444 |
| SEBL Capital Services: net profit | -1,097 | — |
| Telecash: net profit | 228 | — |
| Southeast Exchange (South Africa): net profit | 31 | — |
| Group net profit | 433 | 3,350 |
| Bank (solo) net profit | 500 | 3,344 |
| Islamic branches share of bank assets | 7.4% | 7.8% |
| Islamic branches share of bank PBT | 12.8% | 27.2% |
| Islamic investment / deposit ratio | 74.3% | 75.8% |
| Group minus solo net profit (subsidiaries and eliminations) | -67 | 6 |
Peers
| BDT mn | Value |
|---|---|
| SOUTHEASTB gross NPL | 7.5% |
| NCCBANK gross NPL | 4.1% |
| PRIMEBANK gross NPL | 2.7% |
| JAMUNABANK gross NPL | 3.9% |
| BANKASIA gross NPL | 8.4% |
| SOUTHEASTB CRAR | 13.7% |
| NCCBANK CRAR | 15.5% |
| BANKASIA CRAR | 15.3% |
| SOUTHEASTB cost of fund (reported) | 8.6% |
| NCCBANK cost of deposits and borrowings | 6.6% |
| JAMUNABANK cost of deposits | 6.7% |
| SOUTHEASTB NPL minus peer median (NCC, Prime, Jamuna, Bank Asia) | 3.5% |
| SOUTHEASTB cost of fund minus NCC and Jamuna average | 2.0% |
FAQ
- What is Southeast Bank's NPL ratio?
- 7.51% at 31-Dec-2025, down from 14.82% at Dec-2024 after BDT 21,488m of loans were written off [1 p.88] [1 p.53].
- Does Southeast Bank have a provision shortfall?
- Not at Dec-2025: required and maintained provision were both BDT 22,673m, set with BB in a tripartite meeting. The Dec-2024 shortfall of BDT 15,394m was deferred by BB [1 p.54] [1 p.55] [1 p.8].
- Can Southeast Bank pay a cash dividend for 2026?
- Not under SPCD Circular 06 while paid-up capital is below Tk2,000 crore [4 p.1].
- What is Southeast Bank's capital adequacy?
- CRAR 13.71% at Dec-2025, up from 11.71% [1 p.88].
- Why was net interest income negative in H1 2026?
- Interest paid (BDT 17,013m) exceeded interest earned (BDT 15,381m) as deposit costs rose and classified-loan interest went to suspense [2 p.3] [1 p.53].
- Which results does this report use?
- Consolidated ten-year data 2015-2024, audited 2025 statements and the unaudited H1 2026 statements. Q3 2026 statements are not yet in our corpus.
Sources
- Southeast Bank PLC audited financial statements 2025 (year to 31-Dec-2025) · link · accessed 2026-10-31
- Southeast Bank PLC unaudited financial statements, six months to 30-Jun-2026 · link · accessed 2026-10-31
- Southeast Bank PLC Annual Report 2024 (incl. ten-year indicators 2015-2024) · link · accessed 2026-10-31
- Bangladesh Bank SPCD Circular No. 06, 23-May-2026, dividend declaration policy for banks (Bangla) · link · accessed 2026-10-31
- NCC Bank PLC Annual Report 2025 (peer NPL, CRAR, cost of funds) · link · accessed 2026-10-31
- Prime Bank PLC Annual Report 2025 (peer NPL) · link · accessed 2026-10-31
- Jamuna Bank PLC Annual Report 2025 (peer NPL, cost of deposits) · link · accessed 2026-10-31
- Bank Asia PLC Annual Report 2025 (peer NPL, CRAR) · link · accessed 2026-10-31
- DSE announcements via AnalystBro events: Q2 2026 results (22-Jul-2026), EGM record date 21-Jun-2026, Q3 2026 board meeting 29-Oct-2026 · link · accessed 2026-10-31
- The Daily Star, 'Alamgir Kabir era ends at Southeast Bank after 20 years' (30-Sep-2024) · link · accessed 2026-10-31
- The Daily Star, 'Southeast Bank sends its MD on forced leave' (5-May-2025) · link · accessed 2026-10-31
- The Financial Express, 'Southeast Bank Managing Director Sadeque Hossain resigns' (31-Jul-2025) · link · accessed 2026-10-31
- AnalystBro price data (TradingView feed): DSE:SOUTHEASTB weekly bars to the week of 25-Oct-2026 · link · accessed 2026-10-31
- AnalystBro model for this report (workbook tabs below) · link · accessed 2026-10-31
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