BRAC Bank becomes first local lender to cross Tk1,500cr profit

Infographics: TBS

BRAC Bank has achieved a historic milestone in Bangladesh's banking sector, reporting a consolidated net profit of Tk1,535.86 crore in the first nine months of 2025. This surpasses its full-year profit for 2024 and makes it the first local private bank to cross the Tk1,500 crore mark.

According to the bank's financial disclosure, consolidated net profit rose 52% year-on-year during January-September 2025, reflecting strong earnings momentum despite ongoing economic challenges.

Earnings per share stood at Tk6.06, while net asset value per share increased 31% to Tk51.73. 

Net operating cash flow per share also surged to Tk63.03, driven by higher deposit mobilisation and prudent liquidity management.

With this performance, BRAC Bank has become the highest profit-making local bank in Bangladesh, trailing only UK-based Standard Chartered Bank, which posted Tk3,300 crore in profit for 2024 – the highest in the country's history. 

Last year, BRAC Bank's full-year profit was Tk1,432 crore, meaning it has already exceeded that figure with one quarter remaining in 2025.

The July-September quarter also brought robust growth, with consolidated net profit climbing 50% to Tk629.96 crore compared to the same period last year. Quarterly earnings per share reached Tk2.53.

The bank attributed its strong performance to higher investment income from government securities, rising interest income, and robust returns from subsidiaries. 

It noted that while loan growth remained modest, improved asset quality, efficient cost control, and higher yields on investments collectively strengthened its bottom line.

In a statement, BRAC Bank said, "During the reported period in 2025, BRAC Bank registered robust profit growth driven primarily by incremental investment and interest income. NOCFPS increased significantly, supported by higher deposit mobilisation and bank borrowings, while loan portfolio growth was lower than the same period last year."

The rise in NAV per share reflected the combined effect of higher net profits and a revaluation reserve on government securities.

BRAC Bank operates six subsidiaries – BRAC EPL Investment Limited, BRAC EPL Stock Brokerage Limited, bKash Limited, BRAC Saajan Exchange Limited, and BRAC IT Services Limited – all of which contributed positively to its consolidated performance.

Although the full financial statement for the first nine months has yet to be published, the bank's half-yearly report shows steady resilience. 

Despite challenges such as a dollar shortage, exchange rate volatility, and high inflation, deposits rose 13% during January–June, outpacing the industry average of less than 10%. 

Investments in government securities surged 31%, while the loan portfolio grew 3.43% in the same period.

The bank's balance sheet strength is mirrored in its market performance. On Thursday, BRAC Bank's shares closed 1.72% higher at Tk71.10, taking market capitalisation to Tk14,155 crore, making it the fourth-largest listed company on the Dhaka Stock Exchange and the highest-valued publicly listed bank.

Of the bank's 199 crore listed shares, 46.17% are owned by sponsors and directors, while 36.16% are held by foreign investors – the highest proportion of foreign shareholding in Bangladesh's banking sector. Local institutions and the general public hold 11.60% and 6.07%, respectively, according to the September shareholding report.

BRAC Bank's success is closely linked to its founding mission. Since 2001, the bank has pioneered lending to cottage, micro, small, and medium enterprises (CMSMEs), sectors largely neglected by traditional banks. Its collateral-free approach to financing small entrepreneurs revolutionised the local banking landscape, establishing BRAC Bank as a champion of inclusive banking.

In early October, the Bangladesh Securities and Exchange Commission (BSEC) approved the bank to issue the country's first-ever social bond worth Tk1,000 crore – a landmark initiative in sustainable finance.

A senior bank official told The Business Standard that the bond aligns with International Capital Market Association (ICMA) standards. "Since our inception, BRAC Bank has been committed to social development through financial inclusion and grassroots-level access to finance," he said.

He added that proceeds from the bond will support sectors such as agriculture, healthcare, women's entrepreneurship, and microcredit institutions – areas that drive job creation and economic empowerment. 

"One of our core challenges is securing long-term funding to expand financial inclusion. This bond will help raise sustainable capital and channel it toward underserved segments, fulfilling our broader mission," he said.