Brac Bank Plc · DSEBD:BRACBANK
Brac Bank — Q3 2024 Earnings Presentation
46 slides from Brac Bank's earnings presentation
Slide 1: BRAC Bank PLC. Earnings Disclosure Q3'24
BRAC BANK PLC. Earnings Disclosure Q3’24
Slide 2: Opening Statement
2 Opening Statement Dear Viewers, This is a live webcast in our earnings disclosure portal. The link of which has been shared with all relevant stakeholders through press advertisement, website post and Facebook post. We are also live with this presentation on our Facebook page.
Slide 3: Forward Looking Statements
3 Forward Looking Statements This presentation and accompanying oral remarks may contain or incorporate by reference “forward looking statements” regarding the belief or current expectations of BRAC Bank Ltd., the Board of the Directors and other members of its Senior Management about the strategy,
Slide 4: Contents
Contents Economic Outlook and Market Update Q3’24 : Business Highlights Corporate & Institutional Banking SME Retail Treasury & FI Distribution Network Risk Management Division Sustainable Finance Overview Financial Updates bKash Update Q&A
Slide 5: Economic Outlook & Market Update
Economic Outlook & Market Update
Slide 6: Recent Developments
6 Recent Developments • An interim government was formed on 08 August 2024 headed by Dr. Muhammad Yunus with a strong team of independent technocrats • The interim government has formed six separate commissions to carry out reforms in - electoral system, police administration, judiciary, anti-corrup
Slide 7: Bangladesh Economic Update
7 Bangladesh Economic Update BD Govt. ADB IMF WB Bangladesh GDP Growth Outlook Source: BB, ADB, IMF, WB Respective Database 7.9% 7.7% 7.3% 6.9% 7.1% 5.8% 5.8% 5.5% 5.1% 3.5% 4.5% 4.0% FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 FY'26 14% Contractionary Monetary Policy continues to curb inflation
Slide 8: Bangladesh Economic Update
8 Bangladesh Economic Update Volume ($ Bn) Source: BB, BBS FY24 FY25 23.25 20.47 10.82 11.37 10.03 9.91 3.57 4.13 -2.75 0.11 -1.39 -0.61 -1.69 -3.04 Export Import Trade Balance Remittance C/A Balance Overall BOP Reserve(BPM6) (July-Sep) (July-Aug) (July-Aug) (July-Aug) (July-Aug) (July-Aug) (July-Au
Slide 9: Market Share
9 Market Share Loans Deposits 3.63% 3.45% 3.33% 3.31% 3.49% 2.91% 2.60% 3.38% 2.47% 2.56% 3.25% 2.32% 2.34% 2.41% 2.43% 3.11% 2.58% 2.36% 2.24% 2.14% 2.23% 2.04% 1.97% 1.98% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Strong growth in market share reflects enhanced customer trust
Slide 10: Corporate & Institutional Banking Division Updates
Corporate & Institutional Banking Division Updates
Slide 11: Business Highlights Q3'24 – C&IB
11 Business Highlights Q3’24 – C&IB YoY (Sep'24 vs Sep'23) Sep'24 vs Dec'23 Deposits Deposits ▲33% ▲19% (26%)* CASA Mix ~ 51% from 51% ▼ 51% from 53% CoD ▲5.80% from 4.22% ▲5.80% from 4.40% Assets Portfolio ▲37% ▲23% (30%)* Yield ▲8.90% from 7.00% ▲8.90% from 7.30% New Limit ▲ 4,162 30-Days PAR ▼4.0
Slide 12: SME Banking Division Updates
SME Banking Division Updates
Slide 13: Business Highlights Q3'24 - SME
13 Business Highlights Q3’24 - SME YoY (Sep'24 vs Sep'23) Sep'24 vs Dec'23 Customer Number ▲21% (622k vs. 513k) ▲15% (622k vs. 539k) Deposits Deposits ▲46% ▲36% (48%)* CASA Mix ▼49% from 66% ▼49% from 60% CoD ▲5.04% from 2.63% ▲5.04% from 3.32% Assets Portfolio ▲10% ▲4% (6%)* Yield ▲10.81% from 8.30
Slide 14: Retail Banking Division Updates
Retail Banking Division Updates
Slide 15: Business Highlights Q3'24 - Retail
15 Business Highlights Q3’24 - Retail YoY (Sep'24 vs Sep'23) Sep'24 vs Dec'23 Customer Number ▲24% (1,474k vs. 1,191k) ▲19% (1,474k vs. 1,237k) Deposits Deposits ▲33% ▲25% (34%)* CASA Mix ▼36% from 42% ▼36% from 40% CoD ▲5.49% from 4.08% ▲5.49% from 4.17% Assets Portfolio ▲7% ▲5% (7%)* Yield ▲9.18%
Slide 16: Treasury & FI Division Updates
Treasury & FI Division Updates
Slide 17: Business Highlights - Treasury & FI
17 Business Highlights - Treasury & FI Increased duration on Govt. Efficiently used money market Securities portfolio instruments to generate higher return Enhanced return profile Remittance grew by 62% YOY Significant Strategic FX & Business liquidity buffer NOP Arranged management sufficient ST &
Slide 18: Credit Ratings
18 Credit Ratings BRAC Bank is the only bank in the country to CRAB S&P MOODY’S AAA B+ achieve a rating B1 equivalent to the sovereign rating of LOCAL GLOBAL Bangladesh from both Moody’s and S&P.
Slide 19: Distribution Network Updates
Distribution Network Updates
Slide 20: Business Highlights – Distribution Network
20 Business Highlights – Distribution Network Deposit Net Growth New Relationship Balanced Deposit Growth BDT 9,800 Cr 160K Retail 50% 74% YoY 33% YoY SME 35% Corp 15% Growth Drivers Customer Engagement Network Expansion Increased VoC (200 Events) (16 Sub Branch | 14 Repositioning) (QR | FMS | Trx T
Slide 21: Risk Management Division
Risk Management Division > “BRAC BANK
Slide 22: Risk Management: NPL & PAR movement
22 Risk Management: NPL & PAR movement BDT’ Cr (10 Mn) 30-DPD PAR NPL NPL % 30-DPD PAR % 6.1% 6.3% 8.0% 4.8% 5.0% 4.9% 7.0% 4.5% 4,500 5.0% 4.3% 4.2% 3.8% 3.8% 6.0% 5.0% 4.0% 4,000 4.0% 3.9% 3.0% 3,500 3.6% 3.7% 2.0% 4.0% 3.4% 3.3% 1.0% 3.1% 0.0% 2.9% 2.9% 3,000 2.8% 3.0% 2,245 2,186 2,168 2,142 2,5
Slide 23: Credit Risk Management – Highlights Q3'24
23 Credit Risk Management – Highlights Q3’24 NPL Vintage Analysis (last 7 years) Total Disbursement NPL as of Sep’24 BDT Cr (10 Mn) Q3 | 2024 44,459 13 (0.03%) 2023 51,896 52 (0.10%) 2022 40,617 114 (0.28%) 2021 30,864 84 (0.27%) 2020 18,632 102 (0.55%) Last 07 years 2019 21,634 160 (0.74%) Total Di
Slide 24: Risk Management: NPL Coverage & Credit Cost
24 Risk Management: NPL Coverage & Credit Cost NPL Coverage Cost of Credit 171% 132% 135% 131% 123% 124% 115% 117% 1.32 111% 97% 0.94 0.89 0.80 0.66 0.70 0.65 0.55 0.54 0.58 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24
Slide 25: Sustainable Finance Overview
Sustainable Finance Overview
Slide 26: Sustainable Finance Portfolio
26 Sustainable Finance Portfolio Sustainable Finance Portfolio Q1, 2024 34,593 Cr 66% Q2, 2024 41,114 Cr 73% Q3, 2024 44,362 Cr 79% Awarded as one of the top sustainable Published Sustainability Report 2023 with banks in the country for 4 consecutive GHG emission disclosure in accordance with years
Slide 27: Financial Updates
Financial Updates [> “BRAC BANK
Slide 28: Customer Deposits (EOP)
28 Customer Deposits (EOP) BDT ‘000 Cr (10 Bn) BBL SME Retail Corporate YoY Growth 36% 46% 33% 33% 62 29 19 13 22 45 18 15 16 35 9 11 27 6 5 6 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Growth driven by all segments – aligned to strategy
Slide 29: Segmental Customer Deposits Mix (EOP)
29 Segmental Customer Deposits Mix (EOP) BDT Cr (10 Mn) SME Retail Corporate Q3'24 12,674 Q3'23 20% Q3'22 8,670 19% 61,602 6,151, 29,472 17% 48% 19,456 18,134, 22,130 45,411 32% 51% 35,404 49% 14,611 11,118, 32% 32%
Slide 30: CASA-TD Mix
30 CASA-TD Mix BDT Cr (10 Mn) Current Savings Term Q3'24 Q3'23 15% Q3'22 16% CASA 57% 43% 19% CASA 51% CASA 28% 49% 49% 51% 33% 32%
Slide 31: Loans & Advances (EOP)
31 Loans & Advances (EOP) BDT ‘000 Cr (10 Bn) As per BB BBL SME Retail Corporate YoY Growth 18% 6% 7% 38% 57 24 22 49 25 17 9 40 8 8 13 18 6 29 15 9 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Corporate led the growth | SME is geared for higher pro
Slide 32: Segmental Loans Mix (EOP) - As per BB
32 Segmental Loans Mix (EOP) BDT Cr (10 Mn) As per BB. SME Retail Corporate Q3'24 Q3'23 24,795 43% Q3'22 17,990 57,413 14,660 37% 37% 23,700 41% 22,333 48,664 39,501 46% 8,918 17,135 16% 43% 7,706 8,341 20% 17%
Slide 33: Segmental Loans Mix (EOP) - As per Mgt.
33 Segmental Loans Mix (EOP) BDT Cr (10 Mn) As per Mgt. SME Retail Corporate Q3'24 Q3'23 21,150 Q3'22 37% 15,475 27,363 57,413 12,793 32% 48% 32% 24,847 48,664 39,501 51% 8,900 18,990 48% 15% 7,719 8,341 20% 17%
Slide 34: Standalone Performance YTD Q3'24
34 Standalone Performance YTD Q3’24 BDT Cr unless stated otherwise Customer Deposits BDT 000’ Cr Yield ▲ CoD ▲ Customer Loans BDT 000’ Cr 9.40% 7.99% 5.39% 3.91% Sep’24 2023 Sep’24 2023 61.6 57.4 57.5 55.9 49.1 52.9 Spread ▼ CASA Mix ▼ 4.01% 4.08% 43% 47% 51.9 52.5 Sep’24 2023 Sep’24 Dec’23 34%* 14%
Slide 35: Consolidated Performance YTD Q3'24
35 Consolidated Performance YTD Q3’24 BDT Cr unless stated otherwise Deposits BDT 000’ Cr Loans BDT 000’ Cr 72.3 57.4 63.5 67.1 56.0 58.8 Total Asset BDT 000’ Cr 52.6 52.0 31%* 99.6 14%* 94.1 90.8 Q4'23 Q1'24 Q2'24 Q3'24 Q4'23 Q1'24 Q2'24 Q3'24 83.7 25%* Revenue ▲ CIR ▼ Reg. Capital ▲ CRAR ▲ 4,590 3
Slide 36: Balance Sheet – Solo
36 Balance Sheet – Solo BDT’ Cr (10 Mn) Particulars Sep'24 Dec'23 Δ Amt Δ% Sep'23 Δ Amt Δ% Cash and bank balances 5,858 4,630 1,228 27% 5,101 756 15% Money at call and short notice 50 300 (250) -83% 855 (805) -94% Investments 18,543 11,566 6,977 60% 8,921 9,622 108% Loans and advances 57,413 51,945
Slide 37: Balance Sheet – Consolidated
37 Balance Sheet – Consolidated BDT’ Cr (10 Mn) Particulars Sep'24 Dec'23 Δ Amt Δ% Sep'23 Δ Amt Δ% Cash and bank balances 8,014 7,450 564 8% 7,873 141 2% Money at call and short notice 50 300 (250) -83% 855 (805) -94% Investments 27,525 19,114 8,410 44% 16,155 11,370 70% Loans and advances 57,439 52
Slide 38: P&L – Solo
38 P&L – Solo BDT’ Cr (10 Mn) Particulars YTD Sep'24 YTD Sep'23 Δ Amt Δ% Net interest income 1,032 1,309 (277) -21% Investment income 1,436 562 874 155% Commission, exchange and brokerage 664 453 211 46% Other operating income 16 10 6 62% Total operating income 3,147 2,334 813 35% Staff Cost 867 738
Slide 39: P&L – Consolidated
39 P&L – Consolidated BDT’ Cr (10 Mn) Particulars YTD Sep'24 YTD Sep'23 Δ Amt Δ% Net interest income 1,258 1,535 (277) -18% Investment income 1,965 925 1,040 112% Commission, exchange and brokerage 1,350 942 409 43% Other operating income 16 11 5 48% Total operating income 4,590 3,413 1,177 34% Staf
Slide 40: CONSO Financials with each company's contribution
40 CONSO Financials with each company’s contribution BDT’ Cr (10 Mn) YTD YTD Sep’24 Sep' 2024 YTD YTD Sep’23 Sep' 2023 ∆ Amt Subsidiary PAT BBL’s Share in PAT BBL’s Share in PAT BBL’s Share in PAT PAT PAT BRAC EPL Investments Limited (24) (24) (2) (2) (21) (21) BRAC EPL Stock Brokerage Limited (0.7)
Slide 41: bKash Updates
bKash Updates
Slide 42: bKash: Key Matrices
42 bKash: Key Matrices 77.9 Mn 40.2 Mn 65.2% Customers Active customers Market share in (EOP) (EOP) Tnx. Vol 1,012.6K 839.4 Bn 405.1k Merchants Avg. Monthly Tnx Vol Agents (EOP) (BDT) (EOP)
Slide 43: Subsidiary Financials - bKash Limited: YTD Sep'24
43 Subsidiary Financials - bKash Limited: YTD Sep’24 BDT’ Cr (10 Mn) Particulars YTD Sep'24 YTD Sep'23 Δ Amt Δ% Gross revenue 4,130 3,468 662 19% VAT 484 417 67 16% Revenue 3,646 3,050 595 20% Cost of services 2,364 2,142 222 10% Gross profit 1,282 909 373 41% Operating and administrative expenses 7
Slide 44: Outlook
“BRAC BANK ‘ang
Slide 45: Thank You
Thank You For any queries, please write to us on earningsdisclosure@bracbank.com Scan to Download Unaudited Q3’24 Financial Statements
Slide 46: Q&A
Q&A