Brac Bank continues strong growth in customer deposits, loans and advances in 2022

Despite a difficult business environment in 2022, Brac Bank has significantly increased its balance sheet.

The consolidated entity of Brac Bank (i.e. Brac Bank with all its subsidiaries) achieved a net profit after tax (NPAT) of Tk 380 crore in the first nine months of 2022, reflecting a growth of 12 % compared to the same period of 2021.

On a stand-alone basis, the NPAT of Brac Bank stood at Tk 392 crore.

The bank shared its financial results for the third quarter (Q3) 2022 along with other operational performance and achievements as part of a virtual earnings disclosure program on Nov. 16, a press release read.

Local and foreign investment analysts, portfolio managers and financial market experts participated in the event which was broadcast live on social media for the bank’s stakeholders.

the Managing Director and CEO of Brac Bank, Selim RF Hussain; DMD and CFO Mr Masud Rana; DMD and COO Md Sabbir Hossain; DMD and Head of Corporate Banking Tareq Refat Ullah Khan; DMD and Head of SME Banking Syed Abdul Momen; DMD and Head of Treasury and Financial Institutions Md Shaheen Iqbal; Head of Alternative Banking Channels Nazmur Rahim; Head of Branches Sheikh Mohammad Ashfaque; Ahmed Rashid Joy, Head of Credit Risk Management, and Sarah Anam, Head of Deposits and NFB, Retail Banking, presented the financial results and operational achievements.

A Q&A session was held at the end of the disclosure event.

Highlights of the bank’s year-to-date performance in the third quarter of 2022:

• Deposits increased by Tk 4,621 crore (or 20% annualized) and loans and advances to customers increased by Tk 7,380 crore (or 31% annualized) in the previous nine months.
• The bank’s NPL, at 3.9%, is both comprehensive and well managed and has not increased from a year ago despite the removal of Covid forbearances. The bank maintained an NPL hedge of 114% to absorb possible shocks.
• Total revenue increased by 15% (consolidated) and 8% (solo) from Q3 2021 – despite a 90 basis point decline in net interest margin (NIM) due to the rise bail fees. Revenue growth driven by new bank customer acquisition and balance sheet growth.
• The bank continued its long-term strategy of investing in human resources, technology and infrastructure. Year-over-year, total operating costs increased 22%, primarily due to regulatory compensation requirements and overall inflation.
• Net operating cash flow per share decreased from Tk 10.57 to Tk 1.74 due to higher mobilization of deposits and additional funds borrowed in 2022.
• Earnings per share (EPS) was 2.53 Tk for the consolidated entity, compared to 2.67 Tk last year.
• The net asset value (NAV) per Bank share fell from 38.21 BDT in the same period last year to 39.66 BDT..

Commenting on the financial results, Managing Director and CEO, Selim RF Hussain, explained, “The economy of Bangladesh, along with many other developing countries, has been heavily impacted by global economic challenges over the past nine months. In these difficult times, we are happy to validate once again the sustainability of our economic model. The bank’s extensive physical distribution network, combined with customer-centric digital services and product innovation, has supported our strong growth in 2022.”

“I would like to thank the talented Brac Bank team for their commitment, the Board of Directors for their continuous guidance and Bangladesh Bank for their proactive regulatory support during these challenging times,” he added.

The detail of the financial result is available on the Brac Bank website: https://www.Bracbank.com/en/investor-relations#financialStatements