BRAC Bank profits grow to record Tk827cr in 2023

BRAC Bank achieved a remarkable 35% growth in profit, reaching Tk827.50 crore in 2023, marking its highest-ever profit in history, according to the bank's annual financial statement.

The bank achieved this milestone primarily propelled by interest income, Selim RF Hussain, managing director of the bank, told The Business Standard.

He added that the bank's loan disbursement and deposit collection experienced growth, surpassing the banking sector average, which was made possible through the development of digital banking services.

The annual audited financial statement of the bank was approved at a board meeting held on Tuesday (2 April).

The board of the bank also recommended 10% cash and 10% stock dividends to its shareholders for the last year, marking the highest payout in the last six years.

The bank stated in the statement that the stock dividend has been recommended to strengthen the capital base of the bank to support business growth.

To approve the dividend and the audited financial accounts, it will conduct the annual general meeting scheduled for 30 May, with the record date set as 7 May.

At the end of last year, its consolidated earnings per share was Tk4.73, up from Tk3.75 in 2022.

According to Bangladesh Bank data, BRAC Bank's total outstanding loans amounted to Tk51,824 crore at the end of 2023, with Tk1,750 crore classified as non-performing, representing 3.38% of the total. This marks a 15% increase from 2022. Notably, the percentage of classified loans was 2.23% at the end of September last year.

Furthermore, despite this increase, BRAC Bank's non-performing loan ratio remains significantly below the industry average of 9%. The total classified loans for the industry stood at Tk1.45 lakh crore.

At the end of September last year, its total deposits crossed the Tk50,000 crore threshold to reach Tk53,902 crore, reflecting a 27% increase over the same period a year earlier.

BRAC Bank was listed on the Dhaka bourse in 2007. Its shares closed at Tk40.10 each yesterday, surging 1.26% from the previous session. Currently, it ranks as the 12th largest stock at the Dhaka Stock Exchange in terms of market capitalisation, standing at Tk6,371 crore.

In February, BRAC Bank launched a subordinated bond worth Tk700 crore for seven years to enhance its tier-2 capital base, now available for subscription by investors. The bond will support its capital adequacy requirements as the bank has experienced significant balance sheet growth in recent years, said the bank in the statement.

Meanwhile, the bank plans to invest Tk300 crore in purchasing land for constructing its new head office in Dhaka. At present, BRAC Bank's head office is located in the Tejgaon Industrial Area.