BRAC Bank secured an impressive 70 per cent year-on-year growth in profit to Tk 4.2 billion in the third quarter (Q3) this year, driven by substantial income from investment in government securities.
Its consolidated earnings per share (EPS) stood at Tk 1.97 for July-September this year, up from Tk 1.22 for the same quarter last year, according to a stock exchange filing on Tuesday.
Following the news, the bank's stock soared 4.18 per cent to Tk 49.9 per share on the Dhaka Stock Exchange (DSE) on Tuesday.
"This positive performance was primarily driven by incremental investment income alongside strong growth in commission and fee-based revenue streams," the bank said in its unaudited financial statement.
While interest income grew 42 per cent year-on-year to Tk 15.4 billion in the quarter through September, interest payment to depositors and lenders more than doubled to Tk 11.43 billion.
Hence, its net interest income fell 23 per cent year-on-year to Tk 3.95 billion in the quarter.
However, higher gains from government securities helped achieve the earnings growth in an adverse business climate engendered by inflationary pressure.
The bank's income from government securities climbed 217 per cent year-on-year to Tk 4.6 billion in the quarter.
The yield rates of T-bonds ranged between 12 per cent and 14.80 per cent, with maturity periods of 2-20 years, while T-bills' yields varied between 15 and 15.2 per cent during the July-September quarter.
The bank's income in the form of exchange and brokerage commission also surged 22 per cent year-on-year to Tk 4.09 billion in the quarter.
BRAC Bank has always been able to keep operating costs down and mobilize funds at relatively lower costs due to its excellent market reputation, which enabled the company to remain competitive in the market.
The bank's nine months' consolidated profit exceeded Tk 10 billion for the first time through September this year, registering a 74 per cent growth year-on-year from the corresponding period last year.
The financial institution's income from subsidiaries, particularly bkash, also played a major role in boosting income.
Income from bkash soared to Tk 1.09 billion in the quarter through September from Tk 498 million in the same quarter a year ago. The bank's nine months' income from bkash also escalated 148 per cent year-on-year to Tk 2.18 billion.
The net operating cash flow per share reached Tk 49.51 in January-September this year, up from Tk 25.1 in the same period a year ago.
The bank attributed this increase to elevated deposit mobilisation from customers and other banks, while loan portfolio growth remained modest this year compared to the same period last year.
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