As the nation-wide COVID-19 shutdown continues, BRAC Bank held its earning disclosure for financial year 2019 through an online virtual platform.
Local and foreign investment analysts, media professionals and capital market experts were all connected to the event digitally.
BRAC Bank’s Managing Director and CEO, Selim R. F. Hussain, and Members of the Senior Management Team presented the financial results and also spoke about the bank’s strategy at the event held recently said a press release.
Earlier in a price sensitive information, the bank had declared a dividend of 15 per cent for 2019 in the form of 7.5 per cent cash and 7.5 per cent stock.
Major highlights of the disclosure include:• The 2019 NPAT of the Consolidated Entity (i.e. BRAC Bank & its subsidiaries) was BDT 4,583 million compared to BDT 5,670 million the previous year. BRAC Bank (solo) generated NPAT of BDT 5,646 million in 2019 compared to BDT 5,547 million respectively in 2018.• In 2019, the consolidated entity (i.e. BRAC Bank & its Subsidiaries) generated an Earnings Per Share (EPS) of BDT 4.01 compared to BDT 4.50 in the preceding year. The Bank’s 2019 stand lone EPS rose to BDT 4.58 compared to BDT 4.50 in 2018.• The Operating Profit of the Consolidated Entity (BRAC Bank & its Subsidiaries) fell from BDT 9,395 million in 2018 to BDT 8,962 million in 2019 – a 4.8% reduction. However, the standalone Operating Profit of BRAC Bank increased from BDT 8,822 million in 2018 to BDT 9,948 million in 2019 - a YoY growth of 13%.• The Stock Market crash impacted BRAC Bank (solo) 2019 financials. 2019 Trading Portfolio Revenues fell by BDT 280 Million and the Bank ended up suffering Mark to Market losses of 530M - a net difference of BDT 810 million compared to 2018.• bKash revenues in 2019 grew by 14% but, YoY, the Fintech spent BDT 2,170 million more in Technology resources and infra-structure and also new Commercial activities. These investments are very much in line with the Company’s long term strategy of aggressively acquiring customers and building a digital ecosystem across the marketplace. • BRAC Bank’s Customer Deposit base grew by 20 per cent YoY and its Customer Loan book grew by 11 per cent in 2019.• The Bank’s 2019 Net Interest Margin was 5.9%, compared to 6.1% in 2018, mainly reflecting increased funding costs • The Bank’s 2019 Total Operating Income, i.e. net interest income plus non-funded income showed a 12% YoY growth, increasing from BDT 19,165 million in 2018 to BDT 21,388 million in 2019.•
The Bank’s Cost to Income ratio improved - dropping to 53 per cent in 2019 as opposed to 54 per cent in 2018. Despite environmental challenges, the Bank generated a Return on Equity (ROE) of 16.3 per cent and a Return on Asset (RoA) of 1.65%, both ratios are among the highest in the Bangladesh banking sector. In 2019, the bank’s Non-Performing Loan ratio increased to 4 per cent in 2019 compared to 3.1 per cent in 2018 – mainly on account of stressed Corporate Customer Loans. However, the Bank’s Bad Debt provision coverage remains high, standing at an enviable 97 per cent in 2019.In terms of capital adequacy, BRAC Bank strengthened its position with a comfortable consolidated Capital Adequacy Ratio (CAR) of 16.16 per cent in 2019 which is one of the highest in the industry and much higher than the 12.5 per cent required under local Basel III standards. Its standalone CAR is also well above the requirements, standing at 15.07 per cent in 2019. The net asset value (NAV) per share on consolidated basis at the end of December 2019 stood at BDT 32.90, compared to BDT 28.58 at the end of December 2018. NAV per share on standalone basis at the end of December 2019 stood at BDT 30.53, compared to BDT 25.65 at the end of December 2018. Mr. Hussain said, “In 2019, the Bank and its Subsidiaries have continued to advance their strategic agenda – growing Customer Relationships & Customer Deposits well over industry benchmarks, aggressively progressing an integrated Digital Transformation plan, selectively growing Customer Loans and De-risking legacy Corporate & Commercial portfolios. The Bank has the highest International Credit Rating of any Bank in Bangladesh and is a standard bearer for Corporate Governance. The Bank’s Customer Assets are very well diversified with Customer Loans in SME & Retail Customer Segments accounting for 44% and 18% respectively and it’s Capital Adequacy and NPL levels are among the best in the industry.
-rmc/