‘ACHIEVING A PROFIT OF 10.93 MILLION POUNDS IN 2024’

Special report, Desh desk London, 12 February 2025: Sonali Bangladesh UK Limited (SBUK) is not just a financial institution – it is a testament to adaptability and innovation in a dynamic economic landscape. Established to serve the Bangladeshi community in the United Kingdom, SBUK has undergone a remarkable journey, overcoming challenges and emerging as a leader in trade finance and corporate financial services.

A Remarkable Turnaround: From Banking to Non-Banking Financial Institution (NBFI)

SBUK’s transformation into an NBFI marked a pivotal chapter in its history. Following the revocation of its banking license in 2022, the firm transitioned seamlessly to a trade-focused entity, maintaining its SWIFT status and operational capabilities. Through Project Phoenix, SBUK addressed historical regulatory concerns, implementing robust governance frameworks and compliance measures. The project is still ongoing as the firm aims to make its operations fully aligned with regulatory expectations, paving the way for reapplying for a UK banking license and achieving sustainable long-term growth.

With a strategic focus on trade services and correspondent banking for Bangladeshi commercial banks, SBUK achieved exceptional financial outcomes, recording profits of £3.1 million in 2023 and a projected £10.93 million for 2024 – a 130% increase over budget.

Innovation Driving Operational Excellence

SBUK’s success stems from its commitment to innovation and efficiency. Recent upgrades include:

• DOKA by Surecomp: Automating trade finance processes to reduce risks and increase productivity.
• Finastra’s Finansys: A robust financial management system replacing outdated tools, streamlining accounting operations.
• Traydstream: AI-driven trade document automation, enhancing accuracy and compliance.

These initiatives demonstrate SBUK’s ability to modernize while adhering to regulatory standards, ensuring a strong operational foundation.

Diversified Growth Strategy

In 2024, SBUK took significant steps to diversify its business portfolio:

• Trade Finance Expansion: SBUK strategically expanded its trade finance operations into high-potential regions in Africa and South Asia. By establishing partnerships with local banks and financial institutions in these regions, SBUK is accessing new markets, mitigating concentration risks, and boosting profitability. This regional diversification reduces reliance on its core Bangladesh-UK corridor, ensuring long-term stability and growth.
• Corporate Finance: The institution has entered the corporate finance arena by selectively working with A+ rated UK retailers. SBUK has recently financed £30 million, backed by secure collateral such as inventory, receivables, and bills of exchange. This cautious yet bold move showcases SBUK’s ability to tailor its financial products to meet the demands of the UK’s retail sector while managing risk effectively.
• Real Estate Finance: To further diversify revenue streams, SBUK ventured into UK real estate bridging finance with an initial pilot portfolio of £10 million. By the end of 2024, £7.7 million had already been allocated, with an additional £2.4 million to be disbursed by Q1 2025. With strict underwriting criteria, SBUK ensured this new business line maintained a high standard of risk management.
  Buoyed by early success, SBUK plans to scale this portfolio and introduce Islamic Sharia-compliant financing, catering to a broader customer base and aligning with its heritage.

This diversification highlights SBUK’s innovative approach to risk mitigation and profitability enhancement.

Record-Breaking Achievements in 2024

• Outstanding Profitability: SBUK recorded a profit of £10.93 million in 2024—a staggering 130% increase compared to its budgeted target of £4.7 million. This impressive figure was driven by the following:

Ø  Trade Finance Momentum: Monthly revenues exceeded £1 million, reflecting strong performance in its core business operations.

Ø  New Revenue Streams: Ventures into real estate and corporate finance significantly contributed to this profitability.

Ø  Macroeconomic Tailwinds: Higher interest rates throughout the year enhanced net interest income (NII).

• Dividend Declaration: For the first time in SBUK’s history, the institution declared a £2 million dividend in 2024, a testament to its remarkable financial performance and strategic revival. This achievement is not just a first for SBUK but also marks the highest dividend ever declared by a Bangladeshi foreign company, setting a new benchmark for excellence and profitability among overseas Bangladeshi enterprises.

This milestone reflects SBUK’s dedication to delivering tangible value to its shareholders, underscoring the strength of its turnaround strategy and operational efficiency. It signals the confidence the institution has regained among its stakeholders, demonstrating its ability to translate financial growth into meaningful rewards.

• Operational Efficiency: SBUK’s cost-to-income ratio dropped to an impressive 32%, significantly outperforming its target of 50% and the prior year’s ratio of 45%. This efficiency was achieved through:

Ø  Rigorous cost optimization measures.

Ø  Streamlined operations powered by advanced platforms like DOKA, Finansys, and Traydstream.

• Balance Sheet Growth: SBUK’s balance sheet expanded to £166 million by the end of 2024, driven by:

Ø  Investments in high-quality liquid assets like treasury bills.

Ø  Access to new credit line facilities, supporting ongoing business expansion.

Looking Ahead: A Bright Future

Under the visionary leadership of CEO Masum Billah and the strategic guidance of industry veterans like Moorad Choudhry and David Hayes, SBUK is confidently charting its course for a prosperous future. The firm’s flagship initiative, Project Phoenix, is not merely about recovering a UK banking license but represents a broader mission to redefine SBUK’s role in the financial sector. With PwC’s strategic expertise, SBUK is meticulously working to align its operations with the highest regulatory standards, laying the groundwork for sustainable growth and a return to full banking capabilities.

Central to SBUK’s vision is its deep-rooted commitment to serving the Bangladeshi diaspora in the United Kingdom. This community has long sought financial services that truly understand and cater to their unique needs and aspirations. SBUK is tailoring its offerings to support the financial well-being of Bangladeshi individuals, families, and businesses in the UK, empowering them to achieve their goals while maintaining strong cultural and economic ties to their heritage.

Moreover, SBUK is dedicated to fostering the economic relationship between the UK and Bangladesh, a vital corridor of trade and financial intermediation. By providing trade finance and correspondent banking services, SBUK ensures that Bangladeshi businesses have access to essential financial tools to thrive in an increasingly interconnected global market. In doing so, SBUK not only facilitates cross-border economic activity but also contributes to the development of Bangladesh’s economy and infrastructure.

The institution is equally committed to serving local communities in Bangladesh, aiming to represent their interests on the global stage. By bridging financial gaps and creating economic opportunities, SBUK seeks to strengthen its role as an ambassador for Bangladeshi resilience, innovation, and progress.

SBUK’s remarkable turnaround and record-breaking achievements underscore its resilience and capacity to adapt to a dynamic financial environment. From its diversified business strategies to its ambitious regulatory agenda, the company stands poised to deliver sustainable growth. Its commitment to operational excellence, community engagement, and innovation positions SBUK as a pivotal player in shaping the future of financial services for the Bangladeshi diaspora and contributing to the economic prosperity of both the UK and Bangladesh.

Looking forward, SBUK envisions a future where it serves as a beacon of financial strength and cultural representation, connecting the aspirations of the Bangladeshi diaspora with the opportunities available in the global economy. Through its efforts, SBUK reaffirms its role not just as a financial institution, but as a bridge between two nations, driving progress and empowering communities on both sides of the economic corridor.

For more information, visit www.sbuk.com or contact SBUK at contact@sbuk.com.