Slide 1: H1 2023 Earnings Disclosure
7 BRAC BANK ae in ae Ne H1 2023 = Sie. Earnings Disclosure Q2F
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
4 Contents Economic Outlook and Market Update Business Highlights SME Retail Corporate Treasury & FI Risk Management Division Financial Performance H1’23 bKash Update Q&A
Slide 5: Economic Outlook and Market Update
Economic Outlook and Market Update
Slide 6: Bangladesh Economic Updates
6 Bangladesh Economic Updates Economy • Moderate economic growth amid various challenges • Elevated inflation • Depleting reserve and external debt showing some stabilization Market • Interest rates moving upward, liberalization started • BDT continues to depreciate • Negative rating action Despite
Slide 7: Bangladesh Economic Updates
7 Bangladesh Economic Updates Bangladesh GDP Growth Outlook BD Govt. ADB IMF WB 7.9% 7.3% 7.1% 7.5% 6.9% 6.0% 6.5% 6.0% 6.5% 6.2% 5.5% 5.2% 3.5% FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 Volume ($ Bn) : FY’23 vs FY’22 FY-22 FY-23 82.5 69.4 52.1 55.6 33.3 17.2 21.0 21.6 18.7 6.7 8.2 3.3 Export Import
Slide 8: H1'23 Highlights
8 H1’23 Highlights • Strong Balance Sheet growth*: - Customer Lending grew @ 29% (industry : @ 9%) - Customer Deposit grew @ 28% (industry : @ 14%) • Deposits grew across all segments • Customer number grew by 10% from Dec’22 (143k new customers) • Portfolio quality steadily improving: 30 DPD PAR 4.
Slide 9: SME Banking Division
BRAC BANK SME Banking Division
Slide 10: Business Highlights - SME
10 Business Highlights - SME YoY (Jun'23 vs Jun'22) Jun'23 vs Dec'22 Customer Number ▲20% (487k vs. 404k) ▲10% (487k vs. 442k) Deposits Portfolio ▲23% ▲14% (28%)* CASA Mix ▼ 66% from 73% ▼ 66% from 67% CoD ▲ 2.20% from 1.59% ▲ 2.20% from 1.72% Assets Portfolio ▲30% ▲15% (30%)* Yield ▼ 8.23% from 8.2
Slide 11: Retail Banking Division
BRAC BANK Retail Banking Division
Slide 12: Business Highlights - Retail
12 Business Highlights - Retail YoY (Jun'23 vs Jun'22) Jun'23 vs Dec'22 Customer Number ▲20% (1,071k vs. 893k) ▲10% (1,071k vs. 974k) Deposits Portfolio ▲20% ▲11% (23%)* CASA Mix ▼ 44% from 48% ▼ 44% from 45% CoD ▲ 3.92% from 3.34% ▲ 3.92% from 3.48% Assets Portfolio ▲8% ▲7% (13%)* Yield ▲ 8.57% fro
Slide 13: Corporate Banking Division
BRAC BANK Corporate Banking Division
Slide 14: Business Highlights - Corporate
14 Business Highlights - Corporate YoY (Jun'23 vs Jun'22) Jun'23 vs Dec'22 Deposits Portfolio ▲38% ▲18% (35%)* CASA Mix ▲ 55% from 47% ▲ 55% from 51% CoD ▲ 4.16% from 3.82% ▲ 4.16% from 3.95% Assets Portfolio ▲34% ▲19% (37%)* Yield ▲ 6.79% from 5.21% ▲6.79% from 5.54% New Limit ▲ 3,630 30-Days PAR ▼
Slide 15: Treasury & FI Division
BRAC BANK Treasury & Fl Division
Slide 16: Business Highlights - Treasury & FI
16 Business Highlights - Treasury & FI Loan to Deposit Ratio Liquidity • Maintained healthy liquidity in LCY & FCY 82.8% 83.5% 83.2% 79.9% 80.2% 78.4% • Leveraged FCY strength to book new clients • OBU portfolio grew 24% in H1’23 (annualized) Trading Position Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-2
Slide 17: BBL Ratings
BBL Ratings CRAB ECRL S&P MOODY’S AAA AAA B+ B1 “ We believe the bank will navigate challenging LOCAL GLOBAL operating conditions in Bangladesh and maintain its BRAC Bank tops the list of banks in the latest Sustainable Rating for 2022 based on four indicators : financial profile over the “ • Sustai
Slide 18: Risk Management Division
BRAC BANK Risk Management Division
Slide 19: Risk Management: NPL & PAR movement
19 Risk Management: NPL & PAR movement BDT’ Cr (10 Mn) 30-DPD PAR NPL NPL % 30-DPD PAR % 6.1% 6.3% 8.0% 5.0% 7.0% 4.8% 4.9% 4.8% 4.7% 3,500 5.0% 4.5% 6.0% 5.0% 4.0% 3,000 4.0% 3.9% 3.0% 3.7% 3.8% 3.6% 2.0% 4.0% 3.5% 1.0% 2,500 0.0% 3.1% 2,193 2.9% 2,039 2,081 1,997 3.0% 2,000 1,618 1,613 1,653 1,527
Slide 20: Risk Management: NPL Coverage & Credit Cost
20 Risk Management: NPL Coverage & Credit Cost NPL Coverage Cost of Credit 171% 132% 123% 124% 1.32 115% 111% 111% 97% 0.94 0.89 0.70 0.69 0.66 0.55 0.54 2017 2018 2019 2020 2021 2022 Q1'23 Q2'23 Maintaining strong credit coverage
Slide 21: Credit Risk Management: Reflects Responsible Growth
21 Credit Risk Management: Reflects Responsible Growth 1. Portfolio under payment deferral (< 2.5%) Portfolio Mix % Under regular repayment 97.6% Under Rescheduling 0.8% Extended Covid-19 Restructuring: 1.6% Stay Order - Total 100% 2. Enhanced Risk Management • Well defined RAS (2023) aligned with t
Slide 22: Financials
BRAC BANK FINANCIALS
Slide 23: Customer Deposits (EOP)
23 Customer Deposits (EOP) BDT ‘000 Cr (10 Bn) BBL SME Retail Corporate YoY Growth 26% 23% 20% 38% 43 21 34 14 18 28 8 10 27 6 15 9 15 6 4 6 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 Growth driven by all segments – aligned to strategy
Slide 24: Segmental Customer Deposits Mix (EOP)
24 Segmental Customer Deposits Mix (EOP) BDT Cr (10 Mn) SME Retail Corporate H1’23 H1’22 [VALUE] [PERCENTAGE] [VALUE] [VALUE] H1’21 [VALUE] [PERCENTAG [PERCENTAGE] E] [VALUE] [PERCENTAG [VALUE] 42,980 [PERCENT [PERCENT E] AGE] AGE] 34,096 26,993 [VALUE] [PERCENTAGE] [VALUE] [PERCENTAG [VALUE] E] [PE
Slide 25: CASA-TD Mix
25 CASA-TD Mix Current Savings Term H1’23 H1’22 H1’21 31% 49% 31% CASA 48% 51% CASA 35% 52% 41% CASA 20% 59% 21% 24%
Slide 26: Loans & Advances (EOP)
26 Loans & Advances (EOP) As per BB BDT ‘000 Cr (10 Bn) BBL SME Retail Corporate YoY Growth 26% 27% 8% 37% 47 37 21 17 28 8 26 17 8 13 13 12 5 5 10 10 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 Growth driven by all segments – aligned to strategy
Slide 27: Segmental Loans Mix (EOP)
27 Segmental Loans Mix (EOP) As per BB BDT Cr (10 Mn) SME Retail Corporate H1’23 H1’22 [VALUE] H1’21 [PERCENTAGE] [VALUE] [VALUE] [PERCENTAGE] [PERCENTA 47,089 GE] [VALUE] [VALUE] [PERCENTA [PERCENTAGE] 37,238 GE] [VALUE] 28,244 [PERCENTAGE] [VALUE] [VALUE] [PERCENTAGE] [VALUE] [PERCENTA [PERCENTAGE
Slide 28: Spread – BBL vs Private Banks
28 Spread – BBL vs Private Banks BBL Private Banks 5.48% 5.21% 4.93% 4.28% 4.00% 3.90% 3.35% 3.26% 3.09% 3.10% 2.94% 2.88% H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 *Spread is excluding credit card **Source: Bangladesh Bank (https://www.bb.org.bd/en/index.php/econdata/w_avg_interest)
Slide 29: Standalone Performance H1'23
29 Standalone Performance H1’23 BDT Cr (10 Mn) BDT 42,980 Cr 28%* BDT 47,089 Cr 29%* H1’23 : 10.25 % H1’23 : 1.01 % ROE ROA Cust. Deposit (EOP) Loan (EOP) 2022 : 10.22 % 2022 : 1.14 % Dec’22 : BDT 37,761 Cr Dec’22 : BDT 41,068 Cr H1’23 : 1.88 Jun’23 : 115 % EPS (BDT) 19% NPL Coverage BDT 1,510 Cr 21
Slide 30: Consolidated Performance H1'23
30 Consolidated Performance H1’23 BDT Cr (10 Mn) H1’23 : 10.01 % H1’23 : 0.88 % BDT 52,725 Cr 36%* BDT 47,207 Cr 30%* ROE ROA Deposit (EOP) Loan (EOP) 2022 : 10.16 % 2022 : 1.02 % Dec’22 : BDT 44,706 Cr Dec’22 : BDT 41,208 Cr BDT 2,204 Cr 26% BDT 334 Cr 75% H1’23 : 1.93 Jun’23 : 38.92 Total Revenue
Slide 31: Balance Sheet – Solo
31 Balance Sheet – Solo BDT Cr (10 Mn) Particulars Jun'23 Dec'22 Δ Amt % over 2022 Jun'22 Δ Amt % over Jun'22 Cash and bank balances 4,876 4,803 73 2% 3,344 1,532 46% Money at call and short notice 873 683 191 28% 527 347 66% Investments 7,171 6,429 742 12% 5,720 1,451 25% Loans and advances 47,089
Slide 32: Balance Sheet – Consolidated
32 Balance Sheet – Consolidated BDT Cr (10 Mn) Particulars Jun'23 Dec'22 Δ Amt % over 2022 Jun'22 Δ Amt % over Jun'22 Cash and bank balances 9,902 8,482 1,420 17% 7,823 2,079 27% Money at call and short notice 873 683 191 28% 527 347 66% Investments 13,322 11,655 1,667 14% 10,025 3,297 33% Loans and
Slide 33: P&L – Solo
33 P&L – Solo BDT Cr (10 Mn) Particulars H1'23 H1'22 Δ Amt % over H1'22 H2'22 Δ Amt % over H2'22 Net interest income 860 742 119 16% 782 79 10% Investment income 356 244 112 46% 274 82 30% Commission, exchange and brokerage 288 256 31 12% 332 (44) -13% Other operating income 6 9 (3) -36% 18 (12) -68
Slide 34: Total Revenue – Breakdown (YoY)
34 Total Revenue – Breakdown (YoY) BDT’ Cr (10 Mn) Particulars H1'23 H1'22 Δ Amt Δ% Interest income 1,795 1,290 504 39% Interest paid on deposits and borrowing etc. 934 549 386 70% Net interest income 860 742 119 16% Investment income 356 244 112 46% Commission and brokerage 213 163 50 31% FX Gain /
Slide 35: P&L – Consolidated
35 P&L – Consolidated BDT Cr (10 Mn) Particulars H1'23 H1'22 Δ Amt % over H1'22 H2'22 Δ Amt % over H2'22 Net interest income 1,020 919 101 11% 923 97 11% Investment income 588 310 278 90% 449 139 31% Commission, exchange and brokerage 590 513 78 15% 639 (49) -8% Other operating income 6 10 (4) -39%
Slide 36: CONSO Financials with each company's contribution
36 CONSO Financials with each company’s contribution BDT Cr (10 Mn) H1'23 H1'22 ∆ Amt Subsidiary PAT BBL’s Share in PAT BBL’s Share in PAT BBL’s Share in PAT PAT PAT BRAC EPL Investments Limited (2) (2) (9) (9) 7 7 BRAC EPL Stock Brokerage Limited 1 1 2 2 (1) (1) BRAC SAAJAN Exchange Limited (6) (5)
Slide 37: Update - bKash
BRAC BANK Update - bKash
Slide 38: bKash: Key Matrices H1'23
38 bKash: Key Matrices H1’23 69.9 Mn 40.3 Mn 62.1% Customers Active customers Market share in (EOP) (EOP) Tnx. Vol 295.8K 709 Bn 317.6k Merchants Avg. Monthly Tnx Vol Agents (EOP) (BDT) (EOP)
Slide 39: Subsidiary Financials - bKash Limited
39 Subsidiary Financials - bKash Limited BDT Cr (10 Mn) Particulars H1’23 H1’22 Δ Amt Δ% Gross revenue 2,315 1,879 436 23% VAT (283) (235) (49) 21% Revenue 2,032 1,645 387 24% Cost of services (1,452) (1,231) (221) 18% Gross profit 580 414 166 40% Operating and administrative expenses (441) (363) (7
Slide 40: Key Challenges
40 Key Challenges • Liquidity - LCY & FCY • Uncertain global geo-political & economic outlook • Inflationary pressure on disposable income • General elections in Jan’24
Slide 41: Thank You
THANK YOU For any queries, please write to us on earningsdisclosure@bracbank.com
Slide 42: Q&A
Q &A