BRAC Bank’s H1 profit rises 57% to Tk1,423cr

BRAC Bank reported a 57% year-on-year increase in consolidated net profit after tax to Tk1,423 crore in the first half of 2026, compared with Tk906 crore in the corresponding period of 2025.

On a standalone basis, the bank's net profit after tax rose 67% year-on-year to Tk1,033 crore from Tk620 crore, according to a press release.

The consolidated results include the performance of all the bank's subsidiaries.

BRAC Bank attributed the earnings growth to its diversified businesses, governance framework, customer-focused strategy, balance-sheet expansion and improved operating efficiency.

The bank presented its financial results and business performance for the six months ended 30 June during a virtual earnings call on 13 August.

Local and international investors, research analysts, portfolio managers and capital-market professionals joined the event.

BRAC Bank Managing Director and Chief Executive Officer Tareq Refat Ullah Khan and other senior officials presented the financial results, operational achievements, business strengths and strategic priorities.

The event was livestreamed on the bank's Facebook page and concluded with a question-and-answer session.

The bank recorded strong balance-sheet growth despite what it described as a challenging macroeconomic and industry environment.

Customer deposits increased 25% in June 2026 compared with June 2025, while loans and advances grew 18%. The bank said both growth rates were above the respective industry averages.

As of 30 June, customer deposits exceeded Tk97,000 crore, while loans and advances reached Tk76,000 crore.

The bank's total funds under management consequently surpassed Tk1.73 lakh crore.

BRAC Bank also reduced its cost-to-income ratio to 42% in the first half of 2026 from 48% in the corresponding period of 2025, reflecting its focus on productivity, cost discipline and digital transformation.

Consolidated earnings per share rose to Tk5.07 in the first half of 2026 from Tk3.09 a year earlier.

The bank's consolidated net asset value per share increased to Tk49.38 as of 30 June 2026 from Tk44.84 as of 31 December 2025.

Consolidated return on equity stood at 21.52%, while return on assets was 1.67%.

Total consolidated revenue increased 29% year-on-year, driven by higher non-funded income alongside interest income.

The bank's non-performing loan ratio declined to 2.03% in the first half of 2026 from 2.27% in December 2025.

"Our first-half performance reflects the strength of our business model, prudent governance and disciplined execution," Tareq Refat Ullah Khan said.

"Continued customer confidence has enabled us to deliver growth well above the market while maintaining one of the industry's strongest asset-quality indicators.

"We will stay focused on creating sustainable long-term value for our customers, shareholders and the economy," he added.

The bank recorded balanced growth across its corporate, small and medium enterprise, and retail banking segments while maintaining what it described as one of the industry's lowest non-performing loan ratios.

BRAC Bank said strong balance-sheet expansion, improved operating efficiency, a diversified portfolio and disciplined risk management had collectively contributed to its earnings performance.

"Our achievements would not have been possible without the trust of our customers, the strategic guidance of our Board of Directors, the support of Bangladesh Bank and the unwavering commitment of our colleagues," Tareq Refat Ullah Khan said.

"We are strongly committed to sustaining business growth while upholding the highest standards of governance, innovation, transparency and customer service," he added.