BRAC Bank (BRACBANK) Q4 2023 earnings summary

Executive summary

• FY23 consolidated revenue rose 23% to BDT 4,645 Cr and PAT rose 35% to BDT 828 Cr; year-end total assets reached BDT 837.15bn, up from BDT 655.95bn.

• FY23 deposits grew 34% and loans 26%; Q1'24 consolidated PAT rose 91% YoY, supported by investment income and commissions despite lower net interest income.

• The independent auditor issued an unmodified opinion on the consolidated and separate financial statements.

Financial highlights

• FY23 consolidated operating income was BDT 46.45bn vs BDT 37.86bn; operating expenses were BDT 30.72bn vs BDT 26.39bn.

• Consolidated net interest income was BDT 20.55bn vs BDT 18.42bn; interest income was BDT 41.86bn vs BDT 31.37bn, while interest expense was BDT 21.32bn vs BDT 12.96bn.

• FY23 standalone operating income was BDT 3,161 Cr, up 19%; PAT was BDT 730 Cr, up 27%.

• Consolidated loans and advances reached BDT 520.29bn vs BDT 412.08bn; deposits and other accounts were BDT 588.43bn vs BDT 447.07bn.

• Q1'24 consolidated revenue rose 43% to BDT 1,482 Cr and PAT rose 91% to BDT 318 Cr; net interest income fell 7%, while investment income rose 105% and commissions 71%.

Segment performance

• FY23 segment operating profit: SME BDT 1.61bn, Retail BDT 3.15bn, Corporate BDT 7.37bn and Treasury BDT 1.80bn.

• SME FY23 deposits grew 39% to BDT 2,611 Cr and assets 27% to BDT 5,512 Cr; trade volume reached $150 Mn from $124 Mn.

• Corporate FY23 deposits grew 35%, portfolio 37% and trade volume 18% to $4.11 Bn; 74 leading accounts were onboarded with BDT 7,153 Cr in limits.

• Retail FY23 customers grew 27% to 1.236 Mn and deposits 24%; digital loans reached 8.5k disbursements and BDT 70 Cr portfolio, while bKash DPS registrations reached 148k.

• bKash FY23 revenue rose 22% to BDT 4,191 Cr and PAT to BDT 104 Cr from BDT 17 Cr; Q1'24 revenue rose 24% and PAT 95% to BDT 70 Cr.