BRAC Bank profit in Q1 soars 53% to Tk486cr on Treasury gains

Infographics: TBS

BRAC Bank registered significant growth in consolidated profit by 53% to Tk486 in the January-March quarter of 2025 – primarily driven by strong returns from its investments in government securities, commonly known as Treasury bonds.

Currently, BRAC Bank is the highest profit-maker among local lenders, with only UK-based multinational Standard Chartered Bank ahead of it. In 2024, BRAC Bank posted a profit of Tk1,432 crore, while Standard Chartered secured Tk3,300 crore—the highest ever recorded in the country's banking industry.

Meanwhile, BRAC Bank also reported that its consolidated net asset value (NAV) per share rose by 7% to Tk47.05 compared to December 2024, and the consolidated net operating cash flow per share (NOCFPS) jumped by 76% year-on-year to Tk54.40.

The bank said in its statement filed on the Dhaka Stock Exchange (DSE), during the reported period in 2025, it managed to register robust growth in profit driven primarily by incremental investment income and interest income.

The NOCFPS significantly increased, driven by higher deposit mobilisation and bank borrowings, while loan portfolio growth was lower than the same period in the previous year, read the statement.

NAV per share increased compared to the previous year 2024 due to the combined impact of an increase in net profits and revaluation reserve on the government securities, the bank added.

According to the bank's un-audited financial statement, it earned Tk983 crore from government securities, including capital gains – an 83% year-on-year increase – as Treasury bonds offer double digit interest rate.

Attracted by high interest rates on fixed-income instruments, BRAC Bank invested Tk32,482 crore in government securities – a 13% increase from December 2024.

However, its net interest income – the core segment of its banking operations – declined by 10% year-on-year to Tk410 crore during the first quarter due to rising borrowing costs.

Over the quarter, interest paid on deposits and borrowings surged by 77% to Tk1,384 crore, while interest income from loans increased by 45% to Tk1,794.75 crore compared to the previous year at the same time.

Meanwhile, due to the macro-economic challenges, BRAC Bank's classified loans jumped by 17% to Tk2,073 crore at the end of March, with a ratio of 3.30% – well below the sector average.

Earlier, building on its robust profit, the bank had recommended a 12.5% cash dividend and a 12.5% stock dividend for its shareholders for the previous year.

To approve the dividend, the bank will hold its annual general meeting on 19 June, with the record date set for 25 May.

On Tuesday (13 May), BRAC Bank shares closed 0.19% higher at Tk52 at DSE and the market cap of the bank stood at Tk9,202 crore.

Performance of BRAC Bank's subsidiaries

BRAC Bank has three subsidiaries which are engaged in multiple business segments. The three firms are bKash Limited, country's leading mobile financial services provider, BRAC EPL Stock Brokerage, one of the leading brokerage firms, and a merchant bank BRAC EPL Investments.

bKash reported a significant 88% year-on-year growth in profit, reaching Tk131.88 crore in the first three months of this year.

According to its financial statement for the January-March quarter, bKash posted a net revenue of Tk1,637 crore, which was 35% higher from the same time a year ago.

In 2024, bKash reported record-breaking revenue, surpassing the Tk5,000 crore mark for the first time, alongside an all-time high profit of Tk315.77 crore.

BRAC Bank holds 51% shares of bKash, while Money in Motion LLC of the US owns 16.45%, Alipay Singapore E-Commerce 14.87%, International Finance Corporation 10.36%, and SVF II BEAM (DE) LLC 7.32% shares.

According to bKash, it currently has around eight crore customers, along with 3.50 lakh agents.

Meanwhile, BRAC EPL Stock Brokerage posted a profit of Tk1.99 lakh, while BRAC EPL Investments incurred a loss of Tk3.88 crore.