BRAC Bank's profit doubles in Q1

BRAC Bank witnessed its profit double year-on-year in the quarter through March as it strengthened its footing on the growth trajectory drawn last year.
It achieved a remarkable 100 per cent growth in operating profit in the quarter, compared to the same period of the previous year.
Bank officials said wider investment opportunities following the withdrawal of the lending rate cap in July last year played a pivotal role behind the steady profit growth. A higher profit in January-March this year was in continuation of last year's earnings growth, they said.
M Masud Rana, chief financial officer of BRAC Bank, said interest rate rose 3 per cent after the withdrawal of the 9 per cent lending rate cap.
Besides, since 2020 the company's loan book saw a 62 per cent increase in credits to Tk 510 billion by the end of 2023.
Deposit growth was higher than credit growth. BRAC Bank ensured proper utilization of the excess funds.
The lender's business growth was supported mainly by investment income and interest income.
The company's investment income jumped 105 per cent in January-March this year from the same quarter of the previous year, while interest income escalated 33 per cent year-on-year during the time.
BRAC Bank achieved a 278 per cent year-on-year growth in income to Tk 3.32 billion from government securities alone in January-March this year.
Of 36 listed banks, BRAC Bank bagged the highest profit of Tk 8.27 billion in 2023, 35 per cent up from the previous year.
Its profit growth was mainly driven by small and medium enterprises (SME) and technology-based customer services following an inclusion of 0.36 million new customers in 2023.
Meanwhile, the company's share price closed at Tk 39.4 each on Wednesday on the Dhaka Stock Exchange (DSE).

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