Brac Bank's half-yearly profit jumps 75%
With an increase in deposits, loans and revenue, Brac Bank has posted a staggering 75% year-on-year growth in net profit after tax in this year's first half, according to the bank's earnings disclosure.
The top tier private sector commercial bank's consolidated net profit after tax, which includes data of all subsidiaries, grew to Tk334 crore in the January to June period this year.
As a result, consolidated earnings per share (EPS) increased to Tk1.93, which was Tk1.37 in the first six months of 2022.
During the first half of 2023, the bank's standalone loan portfolio and customer deposit grew by 29% and 28% respectively year-on-year while its solo net profit soared to Tk303 crore from Tk254 crore in the same period last year.
Selim R F Hussain, the bank's managing director and CEO, stated, "These results underscore our capacity to cater to the growing customer base and to expand the balance sheet beyond the industry average."
He believes that these outcomes reflect the trust customers repose in the bank and its sustainability.
"We aspire to uphold and amplify this trajectory of growth. Such robust growth serves as a clear indicator of our long-term ambition to double our business by 2025," he added.
During the online earnings disclosure event, he highlighted the bank's commendable performance in managing non-performing assets, as the non-performing loan (NPL) ratio decreased from 3.72% in December to 3.51% by the end of June.
Reputed for maintaining adequate room to absorb any future financial shock in business, Brac Bank reported a 115% NPL coverage ratio at the end of June.
Higher net interest income that came from loan growth, efficient fund management and higher non-funded income helped increase the bank's consolidated revenue by 25.8% year-on-year. On the other hand, its operating costs were up by 18.77% year-on-year in the six months.
The operating cost increase was driven by salary expenses, inflationary impact on operating costs and the bank's continuous investment in people, technology and infrastructure to support its growth strategy, said the CEO.
Consolidated net operating cash flow per share nearly tripled to Tk21.57 in the six months.
Brac Bank shares, having a face value of Tk10, closed at the floor price of Tk35.8 apiece. At the end of June, the bank's consolidated net asset value per share stood at Tk38.92.