BRAC Bank PLC · DSEBD:BRACBANK
BRAC Bank — Q1 2017 Earnings Presentation
20 slides from BRAC Bank's earnings presentation, May 23, 2017
Slide 1: Earnings Disclosure – Q1' 2017
Earnings Disclosure – Q1’ 2017 building momentum… 23 May 2017
Slide 2: Consolidated Entity - Q1'17 vs. Q1'16
Consolidated Entity - Q1’17 vs. Q1’16 PAT 104% Loans & Advances Growth Profit After Tax EPS (BDT) 127 EoP: 18%, Avg: 18% 1.62 104% 66% 62 0.98 Deposit Growth EoP: 35%, Avg: 28% Asset Quality YTD Mar-16 YTD Mar-17 Mar-16 Mar-17 NPL: 3.7% (Q1’16: 5.3%) ROA ROE 1.86% 22.19% PAR: 5.4% (Q1’16: 9.7%) 52%
Slide 3: Consolidated PAT
Consolidated PAT 104% BDT’ Cr Particulars Q1 2016 Q1 2017 Δ Amount %Δ BRAC Bank Ltd 99 112 13 13% bKash 9 19 10 103% BRAC EPL Inv Ltd (47) (16) 31 65% BRAC EPL Sec Ltd 1 8 7 536% biTS (1) 4 5 417% BRAC Sajaan Exch Ltd 0.5 0.2 (0.2) -48% Total 62 127 65 104% BRAC Bank Ltd share 69 116 47 68%
Slide 4: Financial Results: Income Statement (CONSO)
Financial Results: Income Statement (CONSO) BDT’ Cr Particulars YTD Mar-16 YTD Mar-17 Δ % Net Interest Income 281 302 8% Other Operating Income 200 253 26% Total Revenue 481 555 15% Total Expenditure 273 323 18% Operating Profit 208 232 12% Total Provision 69 27 (61%) Profit Before Tax 139 205 48% P
Slide 5: Financial Results: Income Statement (SOLO)
Financial Results: Income Statement (SOLO) BDT’ Cr Particulars YTD Mar-16 YTD Mar-17 Δ % Net Interest Income 262 274 5% Other Operating Income 134 140 5% Total Revenue 395 414 5% Total Expenditure 195 228 17% Operating Profit 200 186 (7%) Total Provision 31 9 (70%) Profit Before Tax 169 177 5% Provi
Slide 6: SME and Retail segments drive asset growth
SME and Retail segments drive asset growth BRAC Bank Loans & Advances (EoP) BDT’Cr BBL 19% 35% 39% 1% 17,789 17,361 SME Retail Corporate 6,622 6,247 2% 3,703 7,659 3,456 7,407 7,464 4,922 2,656 6% 7% 3% 30% -3% 14,985 16% 27% Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-
Slide 7: Loans & Advances (Avg) - Pan Bank
Loans & Advances (Avg)- Pan Bank BDT’Cr Vs. Mar-16 Vs. Dec-16 BDT 2,612 Cr BDT 555 Cr 17,386 18% 3% 16,831 17,092 17,133 16,196 15,211 15,388 14,774 14,992 14,803 14,792 14,951 14,668 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 7 Steady Growth with Port
Slide 8: Loans & Advances (Avg) - SME
Loans & Advances (Avg)- SME BDT’Cr Vs. Mar-16 Vs. Dec-16 BDT 1,692 Cr BDT 578 Cr 35% 10% 6,369 6,491 6,210 5,913 5,654 5,242 5,276 5,332 5,051 5,167 5,162 4,799 4,925 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Strong Growth Continues in all segments an
Slide 9: Loans & Advances (Avg) - Retail
Loans & Advances (Avg)- Retail BDT’Cr Vs. Mar-16 Vs. Dec-16 BDT 1,072 Cr BDT 183 Cr 42% 5% 3,622 3,545 3,440 3,466 3,347 3,398 3,294 3,170 3,106 3,014 2,869 2,716 2,551 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Steady growth in selected products and s
Slide 10: Loans & Advances (Avg) - Corporate
Loans & Advances (Avg)- Corporate BDT’Cr LCY FCY Corporate 7,425 7,350 7,478 7,415 7,144 7,220 7,273 6,883 6,641 6,709 6,487 6,524 6,538 2,212 2,151 2,097 2,154 2,082 2,162 2,233 2,192 2,022 2,044 1,977 1,884 1,898 5,213 5,199 5,381 5,262 5,062 5,058 5,040 4,691 4,509 4,640 4,641 4,619 4,665 Mar-16
Slide 11: Deposits (Avg) - Pan Bank
Deposits (Avg)- Pan Bank BDT’Cr Vs. Mar-16 Vs. Dec-16 BDT 3,390 Cr BDT 1,501 Cr 20% 8% 20,123 19,705 18,622 18,778 18,344 18,435 18,240 17,753 17,914 17,510 16,734 16,637 16,943 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Steady Growth 11
Slide 12: Shifting business mix to optimize future performance
Shifting business mix to optimize future performance BRAC Bank Loans & Advances (EoP) BDT’ Cr Mar-17 SME Retail Corporate Dec-16 Dec-15 6,966 7,058 39% 40% 6,750 7,156 39% 41% 5,048 34% 7,456 51% 3,766 2,237 3,456 21% 15% 20% Continuation of Portfolio Strategy 12
Slide 13: YoY asset quality
YoY asset quality (30 day portfolio at risk) BDT’ Cr BBL 9.7% SME Retail Corporate 5.6% 5.4% 7.5% 6.3% 12.4% 5.0% 5.2% 4.0% 4.1% 6.8% 1,449 6.3% 368 346 166 915 969 964 149 311 136 522 468 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Continuous improvement 13
Slide 14: YoY asset quality
YoY asset quality (Non performing loans) BDT’ Cr BBL 5.3% SME Retail Corporate 3.7% 3.4% 6.0% 5.2% 3.9% 3.7% 3.7% 2.7% 2.7% 3.5% 4.1% 798 653 255 101 443 591 232 248 97 92 308 266 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Continuous improvement 14
Slide 15: YoY asset quality
YoY asset quality (Non performing loans- Adj for write-offs) BDT’ Cr BBL 6.6% SME Retail Corporate 6.4% 4.0% 4.3% 7.6% 3.7% 3.7% 2.8% 2.7% 3.7% 1,638 4.8% 428 4.1% 176 1,034 1,073 346 149 964 311 140 622 468 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Continuo
Slide 16: Outlook
Outlook Priorities Challenges Continue to invest in: Declining Margins People Central Bank restrictions Technology Processes Credit Card interest rate Network Fees Service Quality Retail Lending Portfolio Cap Expand business geographies, segments & products Balance Sheet Ma
Slide 17: APPENDIX
APPENDIX 4 BRAC BANK vane vanfeiseT
Slide 18: bKash
bKash •Gross Interest income increased +22%, despite drop in interest rate by 93 bps (from 7.08% to 6.15%), contributed by increase in average float balance (Q1’17: Tk1,840 crores) by 51% YTD YTD •Partly offset by increase in interest paid on customer wallet balance, up 91% (2017: BDT Particulars Va
Slide 19: BRAC Bank Expenditure Waterfall
BRAC Bank Expenditure Waterfall BDT’ Cr 10 228 21 2 1 1 195 YTD Mar-16 Salary Rent, taxes, Stationery, printing, Depreciation Others YTD Mar-17 insurance, lighting advertisement etc. etc. 19
Slide 20: Normalized Consolidated PAT
Normalized Consolidated PAT 54% BDT’ Cr Particulars Q1 2016 Q1 2017 Δ Amount %Δ BRAC Bank Ltd 99 112 13 13% bKash 9 19 10 111% BRAC EPL Inv Ltd* -26 -16 10 -38% BRAC EPL Sec Ltd 1 8 7 700% biTS -1 4 5 -500% BRAC Sajaan Exch Ltd 0.5 0.2 -0.3 -60% Total 83 127.2 44.7 54% BRAC Bank Ltd share 88 116 28.