City Bank is Setting Up Remittance Business in Singapore

City Bank to expand overseas business in Singapore

City Bank will be embarking overseas to Singapore with a Tk. 12.55 crore (SGD 2 million) investment. The bank will operate in Singapore through a subsidiary firm to help out the remittances with the wage earners currently living in SIngapore. The announcement was made on the Dhaka Stock Exchange website.

The directors of City Bank have already approved the investments, and according to the disclosure is awaiting clearance approval from both the Bangladesh Bank and the Monetary Authority of Singapore.

From the bank’s representatives, they are already operating their remittance services in Malaysia, where the business was established through CBL Money Transfer from 2013 and they offer their services in 13 branches and have collected over $218 million dollars where $152 million came to Bangladesh in the year 2020.

Singapore houses a total of 814,000 wage earners and an additional 21,000 migrants have migrated there, and according to Bangladesh Bank data, they are responsible for $578 million remittance into the country. 

The bank in 2019 has already established a subsidiary which is named City Hong Kong Limited, for the purpose of a strategic geographic initiative expansion purposes, but it was reported to be incurring losses.

City bank’s earning per share has increased to Tk. 2.97 this year, compared to Tk. 2.89 in the previous year. They were also able to attain a net profit of Tk. 401 crore in 2020, where they disbursed 17.5% as cash and 5% stock for the year.

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