Brac Bank Plc · DSEBD:BRACBANK
Brac Bank — H1 2022 Earnings Presentation
46 slides from Brac Bank's earnings presentation, 2022
Slide 1: BRAC Bank Earnings Disclosure Program H1'22
7 BRAC BANK AN ae NS H12?2 srg » (SITE EARNINGS DISCLOSURE 23; PROGRAM “WG Nomegy \ontaiser
Slide 2: Opening Statement
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
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, bu
Slide 4: Contents
Contents Economic Outlook and Market Update Business Highlights SME Retail Corporate Treasury & FI Risk Management Division Distribution Network Alternate Banking Channels Digital Transformation Sustainable Financing Financial Performance H1’22 bKash Update Q&A
Slide 5: Economic Outlook and Market Update
Economic Outlook and Market Update
Slide 6: Bangladesh Economic Outlook
Bangladesh Economic Outlook Challenging time ahead
Slide 7: Bangladesh Economic Outlook
Bangladesh Economic Outlook Economy Market • Higher Inflation is a challenge • Tighter market liquidity • Govt. initiatives, commodity price correction showing some respite • Govt. securities yield continue to move upward • Export and Remittance likely to maintain and grow • BDT under pressure • BoP
Slide 8: SME Banking Division
SME Banking Division 4 BRAC BANK Nongr aifaiser
Slide 9: Business Highlights: SME Banking Division
Business Highlights : SME Banking Division YoY (H1’22 vs H1’21) Jun’22 vs Dec’21 Customer numbers: 30K new to bank customer 18% 12% Customer deposits: Portfolio 13% 5% CASA Mix 73% (Jun’21 : 75%) 73% (Dec’21 : 79%) COD 47 bps 45 bps Customer assets: Loan portfolio 29% 12% Portfolio Quality: PAR 0.6%
Slide 10: Retail Banking Division
Retail Banking Division 4 BRAC BANK Nongr aifaiser
Slide 11: Business Highlights: Retail Banking Division
Business Highlights : Retail Banking Division YoY (H1’22 vs H1’21) Jun’22 vs Dec’21 Customer numbers: Total Customer 13% (975K vs 866K) 7% (975K vs 913K) Customer deposits: Portfolio 14% 8.5% CASA Mix 48% (Jun’21 : 50%) 48% (Dec’21 : 51%) COD 36 bps 48 bps Customer assets: Asset Portfolio 46% 15% PA
Slide 12: Corporate Banking Division
Corporate Banking Division -4BRAC BANK Nongr aifaiser
Slide 13: Business Highlights: Corporate Banking Division
Business Highlights: Corporate Banking Division YoY (H1’22 vs H1’21) Jun’22 vs Dec’21 Deposits: Portfolio 71% 27% CASA Mix 47% (Jun’21 : 68%) 47% (Dec’21 : 57%) COD 103 bps 129 bps Loan: Portfolio 29% 22% New Limit BDT 3,403 cr. Trade: Portfolio 58% (Country 36%) Portfolio Quality: PAR 2.4% 1.3% NPL
Slide 14: Treasury & FI Division
Treasury & Fl Division 4 BRAC BANK Nongr aifaiser
Slide 15: Business Highlights: Treasury & FI
Business Highlights : Treasury & FI FX • Good FX business led by higher volume & rate Liquidity • Maintained healthy liquidity in tight market situation • Supported above industry balance sheet growth Trading position • Continue to lead as market maker • Leading FX liquidity provider Issued First Af
Slide 16: Loans To Deposit Ratio
Loans To Deposit Ratio 85.3% 84.1% 84.4% 84.2% 84.2% 84.2% 82.3% 83.5% 82.8% 82.9% 83.5% 81.9% 82.4% Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Slide 17: Risk Management Division
Risk Management Division -4BRAC BANK Nongr aifaiser
Slide 18: Credit Risk Management: Portfolio Under Control
Credit Risk Management: Portfolio Under Control NPL movement 3,500 5.0% 4.0% 3,000 3.7% 3.8% 3.6% 4.0% 2,500 3.1% 2.9% 2,137 2,122 3.0% 2,000 -0.7% PAR 1,618 1,372 1,424 1,500 2.0% NPL 977 1,077 1,053 1,031 1,000 722 738 801 NPL % 38% 1.0% 500 - 0.0% 2017 2018 2019 2020 H1'21 H1'22 NPL Coverage & Cr
Slide 19: Credit Risk Management: Portfolio Under Control
Credit Risk Management: Portfolio Under Control 1. Portfolio under payment deferral (< 3%) Portfolio Mix % Under regular repayment 97.1% Extended Restructuring : (BB Circular 3 & 5, Year 2021) 2.7% New Restructuring (BRPD: Circular 14, Year 2022) 0.2% Total 100% 2. No impact of recent rescheduling g
Slide 20: Distribution Network
Distribution Network 4 BRAC BANK Nongr aifaiser
Slide 21: Distribution Network: Update on Sub-Branch
Distribution Network: Update on Sub-Branch H1’22 54 K 10.9 Bn 1.4 Tn 4.2 Mn New Customer Acquisition CASA Dep Total Cash Handled Service Delivered Sub-Branches 5 Sub branches Concept opened in TRUST CENTER AML/CFT SHIELD H1’22 GO-TO- MARKET LOW COST FULL SERVICED 35 Sub branches FINANCIAL CATCHMENT
Slide 22: Alternate Banking Channels
Alternate Banking Channels -4BRAC BANK Nongr aifaiser
Slide 23: Alternate Banking Channels
Alternate Banking Channels CALL CENTER ATM/CDM 269,489 337 ATMs Calls served/month 59 CDMs, 38 RCDMs Alternate Banking Channels AGENT BANKING BRAC Bank Astha Total Customers: 218,927 765 Outlets Migration from paper-based manual platform to ABC
Slide 24: Digital Transformation
Digital Transformation 4 BRAC BANK Nongr aifaiser
Slide 25: Digital Transformation
Digital Transformation Focused Drive Added Values in H1 Upcoming Enhance Customer Experience Number of new features introduced in Projects are in pipeline to support the Mobile app to provide ease of customers with differentiated experience Grow Revenue transactions to customers Improved Control Dat
Slide 26: Sustainable Financing
Sustainable Financing Sustainable Financing Portfolio (BDT Cr) Achievements Ongoing Initiatives 25% 4,372 21% increase in no. of borrowers 3,497 One of the Executing Entities of USD 150M (H1’22: 1,937 vs H1’21: 1,599) Green Climate Fund by IDCOL Recognized as one of the top 10 Piloting Environmental
Slide 27: Financials H1'22
FINANCIALS H1’22 4 BRAC BANK Nongr aifaiser
Slide 28: H1'22 Overview
H1’22 Overview • Businesses have delivered strong performance, aligning strategic priority • Solid growth across the business segments - balanced progression • Portfolio improved but continue to be cautious in approach • Continue investment in technology, infrastructure, process & people • Higher co
Slide 29: Achievements
Achievements Achieved “AAA” Credit Rating from CRAB The Asian Banker Transaction Finance Award 2022 – 2 categories • The Best Transaction Bank in Bangladesh • The Best Cash Management Bank in Bangladesh VISA Awards – 4 categories • Excellence in POS Acquiring Business • Excellence in Consumer
Slide 30: Customer Deposits (EOP)
Customer Deposits (EOP) BDT’ Billion BBL SME Retail Corporate Growth 26% 13% 14% 71% 63 175 103 341 56 89 154 280 150 270 60 40 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 Growth driven by all segments – aligned to strategy
Slide 31: Segmental Customer Deposits Mix (EOP)
Segmental Customer Deposits Mix (EOP) BDT’ Crore SME Retail Corporate H1 22 H1 21 6,300 10,282 19% H1 20 30% 5,996 5,588 22% 21% 4,043 34,096 14% 8,932 32% 26,993 27,978 17,514 51% 15,409 15,003 57% 54%
Slide 32: CASA-TD Mix
CASA-TD Mix Current Savings Term H1’22 H1’21 31% H1’20 48% CASA 35% 52% 41% 31% CASA 59% CASA 49% 21% 51% 18% 24%
Slide 33: Loans & Advances (EOP)
Loans & Advances (EOP) As per BB BDT’ Billion BBL SME Retail Corporate Growth 32% 29% 46% 29% 372 127 169 282 259 132 76 117 99 95 52 47 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 Growth driven by all segments – aligned to strategy
Slide 34: Segmental Loans Mix (EOP)
Segmental Loans Mix (EOP) As per BB BDT’ Crore SME Retail Corporate H1 22 H1 21 12,711 H1 20 34% 16,947 9,885 37,238 46% 35% 13,161 9,526 28,244 47% 37% 11,705 25,938 45% 7,580 20% 5,198 18% 4,707 18% Asset distribution - aligned to strategy
Slide 35: Yield, Cost of Deposit and Spread
Yield, Cost of Deposit and Spread YOA COD (Pan Bank) Spread 9.90% 7.90% 7.67% 7.15% 7.3% 4.9% 5.1% 4.9% 4.3% 4.2% 5% 3.60% 3.0% 2.60% 2.30% H1'20 H2'20 H1'21 H2'21 H1'22 Growing cost of deposit compressed spread
Slide 36: Standalone Performance – H1'22
Standalone Performance– H1’22 ROE ROA BDT 1,251 Cr BDT 37,238 Cr 1.07% 9.27% Total Revenue 4.5% Loan (EOP) 32% FY’21 : 11.00 % FY’21 : 1.31 % Annualized H1’21 : BDT 1,198 Cr FY’21 : BDT 32,121 Cr EPS (BDT) NPL Coverage* 1.70 118% BDT 254 Cr H1’21 : 1.90 FY’21 : 124% PAT 11% H1’21 : BDT 285 Cr CIR CR
Slide 37: Consolidated Performance – H1'22
Consolidated Performance– H1’22 ROE ROA BDT 1,751 Cr BDT 37,353 Cr 0.78% 7.66% Total Revenue 11% Loan (EOP) 32% FY’21 : 10.38 % FY’21 : 1.11 % Annualized H1’21 : BDT 1,576 Cr FY’21 : BDT 32,214 Cr BDT 191 Cr EPS (BDT) NAV (BDT) PAT 12% 1.47 38.52 H1’21 : BDT 216 Cr H1’21 : 1.72 FY’21 : 38.21 BDT 41,
Slide 38: Financial Results: Income Statement (Solo)
Financial Results: Income Statement (Solo) BDT’ Cr (10 Mio.) H1 H1 Variance Profit & Loss 2022 2021 Amount % Interest income 1,290 1,082 209 19% Interest paid on deposits and borrowing 549 398 150 36% Net Interest Income 742 683 58 8% Investment Income 245 358 (113) -32% Commission, exchange and bro
Slide 39: Total Revenue – Breakdown (YoY)
Total Revenue – Breakdown (YoY) BDT’ Cr (10 Mio.) Particulars H1'22 H1'21 Δ Amt Δ % over H1'21 Interest income 1,290 1,082 209 19% Interest paid on deposits and borrowing etc. 561 412 149 36% Net interest income 742 683 58 9% Investment income 244 358 (113) -32% Commission, exchange and brokerage 25
Slide 40: Financial Results: Income Statement (Conso)
Financial Results: Income Statement (Conso) BDT’ Cr (10 Mio.) H1 H1 Variance Profit & Loss 2022 2021 Amount % Interest income 1,461 1,172 289 25% Interest paid on deposits and borrowing 543 405 138 34% Net Interest Income 919 767 151 20% Investment Income 310 433 (123) -29% Commission, exchange and
Slide 41: CONSO Financials with each company's contribution
CONSO Financials with each company’s contribution BDT’ Cr (10 Mio.) H1’22 H1’21 Impact BBL’s Share in BBL’s Share in BBL’s Share in Subsidiary PAT PAT PAT ▲ PAT PAT PAT ▲ BRAC EPL Investments Limited (9) (9) (6) (6) (3) (3) BRAC EPL Stock Brokerage Limited 2 2 15 13 (13) (12) BRAC SAAJAN Exchange Li
Slide 42: Update - bKash
Update - bKash 4 BRAC BANK Nongr aifaiser
Slide 43: bKash: Key Metrics H1'22
bKash: Key Matrices H1’22 62.3 Mn 37.5 Mn 73.4% Customers Active customers Market share in (EOP) (EOP) Tnx. Vol 279.8K 568 Bn 294.7k Merchants Avg. Monthly Tnx Vol Agents (EOP) (BDT) (EOP)
Slide 44: Subsidiary Financials - bKash Limited
Subsidiary Financials - bKash Limited BDT’ Cr (10 Mio.) Particulars H1’22 H1’21 Δ Amt Δ % over H1’21 Gross revenue 1,879 1,561 318 20% VAT (235) (198) (37) 19% Revenue 1,645 1,363 282 21% Cost of services (1,231) (1,050) (181) 17% Gross profit 414 313 101 32% Operating and administrative expenses (3
Slide 45: Thank You
THANK YOU For any queries, please write to us on earningsdisclosure@bracbank.com
Slide 46: Q&A
Q &A