Despite a challenging business environment in 2022, Brac Bank has grown its balance sheet strongly.
The consolidated Brac Bank entity (i.e., Brac Bank with all its subsidiaries) has earned 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 standalone basis, Brac Bank's NPAT stood at Tk392 crore.
The bank shared its financial results for third quarter (Q3) 2022 along with other performance and operational achievements in a virtual earnings disclosure programme on 16 November, reads a press release.
Local and foreign investment analysts, portfolio managers and capital market experts joined the event which was broadcast live on social media for the bank's stakeholders.
Brac Bank's Managing Director and CEO Selim RF Hussain; DMD and Chief Financial Officer M Masud Rana; DMD and Chief Operating Officer 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 Alternate Banking Channels Nazmur Rahim; Head of Branches Sheikh Mohammad Ashfaque; Head of Credit Risk Management Ahmed Rashid Joy and Head of Deposits & NFB, Retail Banking Sarah Anam presented the financial results and operational achievements.
A Q&A session was conducted at the end of the disclosure event.
Highlights of the bank's year to date Q3 2022 performance:
- Deposits grew by Tk4,621 Crore (20% annualised) and Customer Loans & Advances grew by Tk7,380 crore (or 31% annualised) in the preceding nine months.
- The bank's NPL, at 3.9%, is both comprehensive and well managed and has not increased from last year despite the removal of Covid forbearances. The bank has maintained a 114% NPL coverage to absorb possible shocks.
- Total revenue grew by 15% (consolidated) and 8% (solo) compared to Q3 2021 – despite a 90 bps drop in the Net Interest Margin (NIM) on account of higher deposit costs. Revenue growth is driven by new to bank customer acquisition and balance sheet growth.
- The bank has continued its long-term strategy of investing in People, Technology and Infrastructure. Year on Year Total Operating Costs increased by 22%, mainly driven by regulatory compensation requirements and overall inflation.
- Net Operating Cash Flow per share rose to Tk1.74 from Tk10.57 due to higher deposit mobilisation and additional funds borrowed in 2022.
- Earnings per Share (EPS) stood at Tk2.53 for the Consolidated Entity, compared to Tk2.67 last year.
- The Bank's Net Asset Value (NAV) Per Share rose to BDT 39.66 from BDT 38.21 at the same time last year.
Commenting on the financial results, Managing Director and CEO, Selim RF Hussain, elaborated, "The Bangladesh economy, along with many other developing nations, has been heavily impacted by global economic challenges over the past nine months. During these difficult times, we are pleased to once again validate the sustainability of our business model. The bank's large physical distribution network allied with customer centric digital services and product innovation have underpinned our strong growth in 2022."
"I want to thank the talented Brac Bank Team for their commitment, the Board of Directors for their continuous guidance and the Bangladesh Bank for their pro-active regulatory support during these difficult times", he added.
The details of the financial result are available on the Brac Bank website: https://www.Bracbank.com/en/investor-relations#financialStatements