BRAC Bank (BRACBANK) Q3 2024 earnings summary

Executive summary

• Achieved strong year-on-year growth in deposits (34% solo, 31% consolidated) and loans (14%), with all business segments contributing and consolidated profit after tax rising 74% to BDT 1,011 crore.

• Maintained robust asset quality, with NPL ratio at 2.8% (consolidated) and 3.4% (solo), and NPL coverage at 131% (solo) and 132% (consolidated).

• bKash contributed 18% to consolidated PAT, with profit after tax up 148% year-on-year, 77.9 million customers, and 65.2% market share.

• Recognized as a top sustainable bank for four consecutive years, with sustainable finance portfolio at BDT 44,362 crore and 79% of portfolio under sustainable finance.

• Digitalization advanced, with 90% of SME loans and 75% of eligible retail accounts processed digitally.

Financial highlights

• Customer deposits grew to BDT 723.32 billion, up 34% year-on-year; total assets reached BDT 995.67 billion, and loans and advances stood at BDT 574.39 billion.

• Consolidated operating income grew 34% year-on-year to BDT 4,590 crore; investment income surged 112% year-on-year to BDT 19.65 billion.

• Net profit after tax for Jan–Sep 2024 reached BDT 8.71 billion, with EPS at 4.92 and NAV per share at 42.38.

• Cost-to-income ratio improved to 48% (solo) and 58% (consolidated); cost of fund decreased to 3.01%.

• ROE at 16.41% (consolidated), ROA at 1.27%, and capital adequacy ratio at 18.7%.

Outlook and guidance

• Management expects continued growth in deposits and loans, supported by digital initiatives and strong customer acquisition.

• Focus remains on asset quality, risk management, and sustainable finance expansion.

• Macroeconomic reforms, stabilization of FX reserves, and ongoing investment in digital and physical distribution networks are expected to support sector growth.