BRAC Bank (BRACBANK) Q3 2025 earnings summary

Executive summary

• Delivered record performance in Q3 2025, with strong growth across retail, SME, and wholesale banking segments despite a subdued economic environment and policy headwinds.

• Total consolidated assets reached BDT 1,254.8 billion as of 30 September 2025, up from BDT 1,056.7 billion at year-end 2024, reflecting robust balance sheet growth.

• Net profit attributable to equity holders for Jan–Sep 2025 was BDT 12.1 billion, a 39% increase year-over-year, driven by higher interest and investment income.

• Digital transformation and fintech subsidiary bKash contributed significantly to group results.

• Earnings per share (EPS) rose to 6.09 for Jan–Sep 2025 from 4.37 in the prior year period.

Financial highlights

• Deposits grew 33% year-over-year and 31% over the last nine months, led by SME and retail segments; total deposits reached BDT 937.7 billion.

• Loans increased 18% year-over-year, with SME and retail outpacing the market; loans and advances reached BDT 675.7 billion.

• Revenue up 31% year-over-year; profit after tax rose 28%, and group profit after tax up 52% year-over-year, driven by bKash.

• Consolidated operating income for Jan–Sep 2025 was BDT 49.7 billion, up from BDT 33.3 billion year-over-year.

• Cost-to-income ratio improved to 46%; operating expenses up 26% while revenue grew 31%.

Outlook and guidance

• Anticipates policy rate cuts and post-election economic recovery in 2026, supporting stronger credit demand.

• Expects continued growth in loans and deposits, especially in SME and retail, with digital adoption accelerating.

• Management highlighted a stable outlook, with strong liquidity, profitability, and capital adequacy trends.

• No immediate need for capital raising; equity issuance planned for early 2028 to support future growth.

• The bank expects continued focus on asset quality and digital transformation.