BRAC Bank achieves 35pc growth in Q1-2024
Business Report :
BRAC Bank achieved a 35% growth in its consolidated Net Profit After-Tax (NPAT) for 2023 during challenging market conditions.
The bank’s consolidated financials, which include all of its subsidiaries, showed an NPAT of Tk828 crore in 2023, a significant increase from the Tk614 crore reported in 2022.
BRAC Bank’s standalone NPAT was Tk730 crore in 2023, representing a 27% increase from 2022.
Despite the stressed industry conditions, the Bank delivered strong balance sheet growth, with deposits growing by 34% and loans and advances increasing by 26 percent.
In the first quarter (Q1) of 2024, BRAC Bank’s consolidated Net Profit After Tax (NPAT) stood at Tk318 crore, after an incredible 91% year-over-year growth compared to the same period last year.
The bank’s financial and operational accomplishments for FY 2023 and Q1 2024 and earnings were unveiled during a virtual earnings disclosure event on May 13, 2024.
The event, broadcast live on social media, was attended by investment analysts, portfolio managers, and capital market experts from local and foreign markets who were the bank’s stakeholders.
BRAC Bank’s Managing Director and CEO, Selim RF Hussain, and other senior officials presented the financial results, operational achievements, and strength of the bank and outlined the Bank’s strategic focus for the future.
At the end of the disclosure event, a Q&A session was conducted.
Highlights of the Bank’s performance in FY 2023:
* Earnings per share (EPS) increased to Tk4.73 on a consolidated basis in 2023 from Tk3.75 in 2022;
* The bank’s consolidated net asset value (NAV) per share raised to Tk41.36 from Tk38.03 compared to last year;
* BRAC Bank’s loan portfolio grew by 26% YoY, compared to average industry growth of 10.6%;
* Deposits grew by 34% YoY; despite to average industry growth of 11.1%;
* Consolidated Return on equity (RoE) and Return on assets (RoA) stood at 11.92% and 1.02%, respectively;
* Total consolidated revenue increased by 23% YoY in 2023, driven by higher net interest income resulting from loan growth, efficient fund management and higher non-funded income;
* Total consolidated operating costs up by 16% compared to 2022 mainly driven by staff costs and the Bank’s continuous investment in people, technology and infrastructure to support its growth strategy;
* The bank’s NPL (non-performing loans) improved to 3.38% in 2023 from 3.72% in 2022, driven by prudent underwriting, monitoring and recovery initiatives.
Highlights of the Bank’s performance in Q1 ‘2024:
0 Consolidated Earnings per share (EPS) increased to Tk1.70 in Q1 2024 compared to Tk0.89 in the corresponding period of 2023;
0 The bank’s consolidated net asset value (NAV) per share raised to Tk42.97 on 31 March 2024 from Tk41.36 in December 2023;
0 BRAC Bank’s standalone deposit grew by 8% in Q1 2024 compared to December 2023, showing strong alignment with its long-term growth strategy and customer confidence;
0 Consolidated Return on equity (RoE) and Return on assets (RoA) stood at 16.11% and 1.25%, respectively;
0 Total consolidated revenue increased by 43% compared to Q1 2023, driven by higher investment and non-funded income coupled with Interest income;
0 The Bank maintained its standalone NPL at the same pace of 3.30% in Q1 2024 compared to 3.38% in December 2023;
Regarding BRAC Bank’s financial results, Selim RF Hussain, the bank’s Managing Director and CEO, commented that the bank has achieved strong growth in line with its medium-term strategy.
BRAC Bank’s growth in deposits and loans is well above the industry average, and this is a testament to the customer’s trust in the bank and its long-term sustainability. The Bank has significantly upgraded its services and customer propositions in the last year through digital technology and customized products. We plan to continue this momentum and double our business by 2025.
