BRAC Bank achieved a 32 per cent growth in its net profit after-tax (NPAT) on a consolidated basis for the year 2022 amid challenging market conditions.
The bank's consolidated financials, which include all its subsidiaries, showed an NPAT of Tk 612 crore in 2022, a significant increase from Tk 465 crore reported in 2021, read a press release.
BRAC Bank’s standalone 2022 NPAT was Tk 576 crore, representing a 3.90 per cent increase from the previous year's Tk 555 crore. Despite the stressed industry conditions, the bank delivered strong balance sheet growth, with customer deposits growing by 24 per cent and loans and advances increasing by 28 per cent.
The bank's financial and operational accomplishments for FY2022 and earnings were unveiled during a virtual earnings disclosure event on April 30.
The event was attended by investment analysts, portfolio managers, and capital market experts from local and foreign markets who were the bank's stakeholders.
BRAC Bank’s Managing Director and CEO Selim RF Hussain and other senior officials presented the financial results, operational achievements, bank’s strength and outlined the bank’s strategic focus for the future.
The bank’s earnings per share (EPS) increased to Tk 4.02 on a consolidated basis in 2022 from Tk 3.65 in 2021, while its consolidated net asset value (NAV) per share raised to Tk 40.86 from Tk 38.21 compared to the previous year.
BRAC Bank’s loan portfolio grew by 28 per cent year-on-year (YoY) compared to average industry growth of 14.2 per cent. Customer deposits increased by 24 per cent compared to average industry growth of 5.7 per cent. Consolidated return on equity (RoE) and return on assets (RoA) stood at 10.16 per cent and 1.02 per cent respectively.
Besides, total consolidated revenue increased by 20 per cent YoY in 2022, driven by higher net interest income resulting from loan growth, efficient fund management and higher non-funded income, the release added.
Total consolidated operating costs were up by 23 per cent compared to 2021 mainly because of higher staff costs on implementation of regulatory minimum salary for entry-level staff, inflationary impact on other operating costs, and the bank’s continuous investment in people, technology and infrastructure to support its growth strategy.
BRAC Bank’s NPL (non-performing loans) improved from 3.90 per cent in 2021 to 3.72 per cent in 2022 driven by initiatives in underwriting, monitoring and recovery.
Selim RF Hussain said the bank has delivered strong growth in line with its medium-term strategy. BRAC Bank's growth in deposits and loans is well above the industry average and this is a testament to the customers' trust in the bank and its long-term sustainability. Last year, the bank significantly upgraded its digital services and customer propositions. “We plan to continue this momentum and double our business by 2025.”
He added, “BRAC Bank is recognized by all stakeholders as a role-model for corporate governance, compliance and values based banking in Bangladesh. We would like to thank our Chairman and Board of Directors for their counsel, the Central Bank for their guidance and our customers for their unwavering trust in BRAC Bank.”
