BRAC Bank posts Tk 1.41bn net profit in Q1

Staff Correspondent

28 May, 2021 12:00 AM printer

BRAC Bank posted a net profit after-tax of Tk 1.41 billion in first quarter of 2021 with a year-on-year growth of 31 percent. 

The bank’s consolidated net profit stood at Tk 1.09 billion with a year-on-year growth of 44 per cent. 

BRAC Bank Managing Director and CEO Selim RF Hussain, Deputy Managing Director and Chief Financial Officer M Masud Rana, Deputy Managing Director and Chief Operating Officer Sabbir Hossain, DMD and Head of Corporate Banking Tareq Refat Ullah Khan and other Senior Business Heads presented the financial results at its earning discloser for Q1 2021 through an online virtual platform.

The virtual earning disclosure programme brought together many local and foreign investment analysts, portfolio managers and capital market experts, said a press release.

The bank’s earnings per share (EPS) stood at Tk 1.06 on a standalone basis and Tk 0.93 on a consolidated basis.

Bank’s customer deposits grew by 4 per cent YoY while the CASA mix improved from 43 per cent to 55 per cent reflecting a successful deposit mobilisation and interest rate management strategy.

BBL was very cautious in growing its customer loan portfolio in pandemic years with a 0.4 per cent YoY net growth, while SME lending grew well at 18 per cent YoY, Retail lending picking up in Q1’21 and the bank was very selective in growing loans in the corporate, commercial business.

The bank’s net asset value (NAV) per share, as at March 2021, stood at Tk 36.24 on a consolidated basis and at Tk 35.04 on a standalone basis.

Compression in interest margin continued throughout the entire banking industry after the introduction of lending rate cap at 9 per cent in April 2020. Despite this, BRAC Bank ended the first quarter with a spread of 4.8 per cent with better Cost of Deposit Management.

The bank’s treasury division performed very strongly and helped recover most of the interest income lost from subdued customer lending and lower lending rates. The bank’s investment income from government securities is more than doubled YoY during Q1.

BRAC Bank’s stand-alone Cost to Income Ratio (CIR) improved by 6 per cent YoY standing at 50 per cent, while the consolidated entities’ CIR stood at 65 per cent, improving by 4 per cent YoY.

The bank’s non-performing loan (NPL) ratio was 4.4 per cent, up by 0.6 per cent YoY, while the NPL coverage ratio improved to 119 per cent to build a reserve against potential bad debt challenges arising out of the pandemic.

BBL reported a consolidated capital adequacy ratio (CAR) of 15.12 per cent with 95 per cent Tier-1 capital, the highest Tier-1 capital ratio in the industry. The bank’s standalone CAR, at 14.65 per cent, is also well above the 12.5 per cent regulatory requirements.