BRAC Bank's H1 profit surges 57% to Tk1,423cr

Highlights:

• H1 consolidated profit rises 57% to Tk1,423 crore
• Q2 profit jumps 73% year-on-year to Tk727.74 crore
• EPS stands at Tk5.07; NAV per share climbs to Tk49.38
• Higher interest and investment income drive earnings growth

BRAC Bank PLC reported a 57% year-on-year increase in consolidated net profit for the first half of 2026, supported by higher net interest income and investment income.

According to the bank's unaudited financial statements, approved at a board meeting held today (28 July), consolidated net profit after tax rose to Tk1,423 crore during the January-June period.

The bank's consolidated earnings per share (EPS) stood at Tk5.07, while its consolidated net asset value (NAV) per share increased to Tk49.38 as of 30 June 2026, up from Tk44.84 a year earlier.

The bank's performance strengthened further in the second quarter.

For the April-June period, consolidated net profit climbed 73% year-on-year to Tk727.74 crore, while second-quarter EPS stood at Tk2.55.

Infographic: TBS

BRAC Bank said the strong earnings growth was primarily driven by increased net interest income and investment income.

Speaking to The Business Standard, BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the bank currently manages a combined fund of nearly Tk1.70 lakh crore, including deposits and assets.

"Our portfolio is expanding every year," he said.

"Over the past year, our deposits grew by nearly 25%, surpassing Tk95,000 crore. During the same period, our assets expanded by around 18%, crossing Tk76,000 crore. In other words, BRAC Bank has achieved growth well above the market average in both deposits and assets."

He added that the bank's operational efficiency had improved significantly, reducing its cost-to-income ratio from 48% to 42%.

The bank also expanded its business across its corporate, SME and retail segments, strengthening its balance sheet.

Khan said the bank's non-performing loan (NPL) ratio declined to 2.03% from 2.27% over the past six months.

"The combined effect of all these factors has driven our profit growth," he said.

Market analysts attributed the strong first-half performance to BRAC Bank's continued leadership in the SME lending segment, strategic expansion of its digital banking operations and efficient management of interest margins despite a challenging macroeconomic environment.

The bank has also remained a preferred choice for local and foreign institutional investors due to its strong corporate governance and asset quality.

BRAC Bank became the first local private commercial bank to post an annual net profit of more than Tk2,000 crore in 2025. Its latest half-yearly results indicate that the lender remains on track to deliver another record financial performance by the end of 2026.