BRAC Bank (BRACBANK) Q2 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with robust growth in SME, retail, and corporate segments, and significant contributions from bKash.

• Net profit after tax rose to BDT 7.09 billion for H1 2025, up from BDT 5.22 billion year-over-year, driven by higher interest and investment income.

• Consolidated total assets reached BDT 1.17 trillion as of June 2025, up from BDT 1.06 trillion at year-end 2024.

• Customer base expanded by 134,000 in six months, with balance sheet growth of 23% annualized and 26% year-on-year.

• Shareholders approved a 25% dividend (12.5% cash, 12.5% stock) for 2024, distributed in June 2025.

Financial highlights

• Deposits grew 33% year-on-year, adding BDT 10,000 crore in H1; balance sheet up 26% year-on-year.

• Consolidated operating income for H1 2025 was BDT 38.86 billion, up from BDT 30.06 billion year-over-year.

• Revenue up 25% year-on-year; profit after tax up 20% to BDT 620 crore for H1.

• Consolidated profit after tax reached BDT 906 crore, a 53% year-on-year increase, driven by bKash.

• Trade throughput increased to $3.5 billion from $2.5 billion year-on-year.

Outlook and guidance

• Expect sustained export and remittance growth, keeping current account in surplus and inflation declining.

• Anticipate policy rate cuts once inflation drops below 7%, supporting lower interest rates and GDP growth recovery to 5.1%-5.5% in 2026.

• Management reports a stable outlook, with strong liquidity, asset quality, and capital adequacy maintained.

• Credit ratings remain stable, with AAA (local) and B+/B2 (international) as of June 2025.

• Positive outlook for H2 2025, with strong momentum in retail and SME segments.