Brac Bank's Jan-Sep profit grows 53% YoY
The bank’s loan portfolio grew by 18.5% in the first nine months of the year, while customer deposits grew by 20.3%.
Brac Bank's consolidated net profit after tax grew by 53.1% in the January to September period this year from the same period last year supported by a strong balance sheet growth, says a press release issued Tuesday.
In the first nine months of the year, the top tier lender's consolidated net profit that accounts for all its subsidiaries grew to Tk581.4 crore from Tk379.8 crore in the same period last year.
Brac Bank individually made Tk503.47 crore net profit, up from Tk392.4 crore a year ago.
Its loan portfolio grew by 18.5% in the first nine months of the year, while customer deposits grew by 20.3%.
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"The results for Brac Bank's first nine months of 2023 reflect our ability to grow our balance sheet and customer base at a pace well above industry average even during difficult times," said Selim RF Hussain, Brac Bank's managing director and CEO.
In a 7 November earnings disclosure programme he also said, "Our strong growth has been possible because of the enduring trust and unwavering support we receive from our customers and stakeholders."
"Brac Bank today is a role model for the Bangladesh banking industry and these strong results validate the bank's sustainable business model based on its SME, corporate and retail segments and grounded on governance, transparency and ethics."
At the end of September, Brac Bank's non-performing loans declined to 3.40%, from 3.72% in December last year. On the other hand, the bank maintained 122% non-performing loans coverage to absorb any future shocks.
Against 25% consolidated revenue growth in Jan-Sep, the bank and its subsidiaries kept the operating cost growth within 18.65% from last year.
"Higher net interest income resulting from loan growth, efficient fund management and higher non-funded income helped the revenue growth while the bank's continuous investment in people, technology and infrastructure to support its growth strategy caused the operating cost growth," the bank's officials said.
Consolidated net operating cash flow per share for the nine months has grown to Tk28.02 from Tk4.46 a year ago thanks to the higher customer deposit mobilisation.
