Brac Bank has posted upbeat financial results for the third quarter (Q3) of 2021.
The bank registered a Net Profit After-Tax (NPAT) of Tk138 crore with a growth of 8% compared to the same quarter of 2020 year-on-year on a standalone basis, according to a press release.
On a consolidated basis, with all its subsidiaries, the NPAT stood at Tk123 crore with a year-on-year decrease of 14%.
The bank’s Q3 earnings were announced on a virtual platform on November 8.
Local and foreign investment analysts, portfolio managers and capital market experts joined the event which was broadcast live on social media for the bank’s stakeholders.
BRAC Bank’s Managing Director and CEO, Selim R. F. Hussain; DMD and Chief Financial Officer, M Masud Rana FCA; DMD and Chief Operating Officer, Md. Sabbir Hossain; DMD and Head of Corporate Banking, Tareq Refat Ullah Khan; DMD and Head of SME Syed Abdul Momen, Head of Retail Banking Md Mahiul Islam and Head of Treasury and FIs Md Shaheen Iqbal and Head of Credit Risk Management Ahmed Rashid Joy presented the financial results and outlined the Bank’s strategy.
Highlights of the bank’s Q3’ 2021 performance are:
• Earnings per Share (EPS) stood at Tk0.99 on a standalone basis and Tk1.02 on a consolidated basis.
• Loans and advances grew by 5% compared to December 2020 in line with strategic direction, led by the retail business while the bank was very selective in growing loans in the Corporate and Commercial Businesses.
• Customer Deposits decreased by 4% compared to December 2020 with a conscious effort to use the funding base optimally.
However, the CASA mix further improved to 59% at the end of Q3 2021 which was 53% in December 2020.
• The bank achieved good growth in non-funded businesses in 2021 namely Acceptances, LC issuance and bills collection showed very encouraging growth of 50%, 70% and 19% respectively compared to December 2020.
• Compression in interest margin continued throughout the entire banking industry after the introduction of the lending rate cap at 9% in April 2020 and the newly implemented minimum interest rate on deposits. Despite this, Brac Bank ended the third quarter with 54% year-on-year growth in net interest income well supported by excellent Cost of Deposit Management.
• Brac Bank’s standalone and consolidated Cost to Income Ratio (CIR) in Q3 2021 improved compared to Q3 2020: 52% and 67%
Both the year-on-year Return on Equity (RoE) and Return on Assets (RoA) improved in Q3 2021.
• The bank’s Q3’21 Non-Performing Loan (NPL) ratio was 3.6%, up by 0.4% year-on-year, while the NPL coverage ratio slightly decreased to 145% from 151%.
• BBL reported a consolidated Capital Adequacy Ratio (CAR) of 14.2% for Q3’21 with 91% tier-1 Capital, one of the highest tier-1 capital ratios in the industry.
• The bank’s standalone CAR, at 14.6%, is also well above the 12.5% regulatory requirements.
• The net asset value (NAV) per share, as of September 2021, stood at Tk35.2 on a consolidated basis and at Tk34.1 on a standalone basis.
Brac Bank’s Managing Director and CEO, Selim RF Hussain said: “BRAC Bank’s key financial indicators are showing sign of returning to normalcy and catching up business momentum. Retail business led the revenue stream driving growth of loans and advances by 5%.
Non-funded income, net interest income and CASA mix improved further showing a silver lining for the bottom line.”
He added: “Rise in RoE, RoA and CAR manifests the bank’s strong fundamentals and financial stability, a solid backbone the shareholders can keep their trust on.
S&P’s upholding of ‘B+’ credit rating for five consecutive years despite unprecedented challenges shows real strength that sets Brac Bank apart in Bangladesh banking industry.”
The details of the financial result are available on the bank’s website.
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