Brac Bank Plc · DSEBD:BRACBANK
Brac Bank — Q3 2022 Earnings Presentation
47 slides from Brac Bank's earnings presentation, 2022
Slide 1: BRAC Bank Q3'22 Earnings Disclosure Program
7 BRAC BANK AN ae NS Q3'22 orEE EARNINGS DISCLOSURE 29: PROGRAM “W% Nomegy \ontaiser
Slide 2: Opening Statement
Opening Statement 2 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 3 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
Contents 4 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 Q3’22 bKash Update Q&A
Slide 5: Economic Outlook and Market Update
Economic Outlook and Market Update
Slide 6: Bangladesh Economic Updates
Bangladesh Economic Updates 6 Export & Import FOREX Reserve • Jul-Oct’22 export earnings post 7.01% growth. • Forex reserves now stands at $34.42 billion. • Import orders fall 12% in Jul-Sep’22 period. • Economists suggest urgent dollar netting to avert crunch. • BB finally adopts floating exchange
Slide 7: Bangladesh GDP Growth Outlook
Bangladesh GDP Growth Outlook 7 General consensus about positive GDP growth (> 6%)
Slide 8: Bangladesh Economic Outlook
Bangladesh Economic Outlook 8 Economy Market • Import growth continue to surpass Export and • Private credit growth double of deposit Remittance growth, may moderate in 2023 growth. • Current Account Deficit and negative BoP • Inflationary pressure cause for concern likely to continue • Tighter mone
Slide 9: SME Banking Division
SME Banking Division
Slide 10: Business Highlights: SME Banking Division
Business Highlights : SME Banking Division 10 YoY (Q3’22 vs Q3’21) Q3’22 vs Dec’21 Customer numbers: 75K new to bank customer 22% 12% Customer deposits: Portfolio 13% 2% (3%)* CASA Mix 72% (Q3’21 : 76%) 72% (Dec’21 : 79%) COD 80 bps 62 bps Customer assets: Loan portfolio 28% 11% (15%)* Portfolio Qua
Slide 11: Retail Banking Division
Retail Banking Division
Slide 12: Business Highlights: Retail Banking Division
Business Highlights : Retail Banking Division 12 YoY (Q3’22 vs Q3’21) Q3’22 vs Dec’21 Customer numbers: Total Customer 15% (1,008k vs 880k) 10% (1,008k vs 913k) Customer deposits: Portfolio 16% 12% (16%)* CASA Mix 46% (Q3’21 : 52%) 46% (Q4’21 : 50.6%) COD 100 bps 79 bps Customer assets: Asset Portfo
Slide 13: Corporate Banking Division
Corporate Banking Division
Slide 14: Business Highlights: Corporate Banking Division
Business Highlights: Corporate Banking Division 14 YoY (Q3’22 vs Q3’21) Q3’22 vs Dec’21 Deposits: Portfolio 89% 37% (49%)* CASA Mix 50% (67% Q3’21) 50% (64% FY’21) COD 210 bps 210 bps Loan: Portfolio 62% 40% (53%)* New Limit BDT 5,483 cr. Trade: Portfolio 46% (Country 22%) Portfolio Quality: PAR 0.6
Slide 15: Treasury & FI Division
Treasury & FI Division
Slide 16: Business Highlights: Treasury & FI
Business Highlights : Treasury & FI 16 Liquidity • Supported above industry balance sheet growth, in both Loans and Deposits. • Maintained healthy liquidity • Running positive gap in rising interest rate outlook. Trading position • Continue to lead as market maker. • Leading FX liquidity provider. A
Slide 17: Loans To Deposit Ratio
Loans To Deposit Ratio 17 85.3% 84.4% 84.2% 84.2% 84.2% 83.5% 83.2% 82.8% 82.9% 82.4% 81.9% 82.0% 81.9% Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Slide 18: Risk Management Division
Risk Management Division
Slide 19: Credit Risk Management: NPL & PAR movement
Credit Risk Management: NPL & PAR movement 19 BDT Cr (10 Bn.) NPL NPL % 4.0% 3.9% 4.1% 3.9% 2,000 3.6% 3.8% 4.0% 3.1% 1,800 1,600 2.9% 3.5% 3.0% 1,547 1,400 1,200 1,399 1,424 2.5% 1,000 1,254 2.0% 800 1,053 1.5% 600 400 722 738 801 1.0% 200 0.5% - 0.0% 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 30 D
Slide 20: NPL Coverage & Credit Cost
NPL Coverage & Credit Cost 20 NPL Coverage Cost of Credit 171% 132% 123% 124% 118% 117% 114% 97% 1.32 0.89 0.94 0.66 0.64 0.55 0.55 0.52 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22
Slide 21: Credit Risk Management: Portfolio Under Control
21 Credit Risk Management: Portfolio Under Control 1. Portfolio under payment deferral (< 3%) Portfolio Mix % Under regular repayment schedule 97.2% Regular Rescheduling 0.5% Covid Restructuring-1: (BRPD: Circular 3 & 5 / 2021) 2.1% Covid Restructuring-2: (BRPD: Circular 14/ 2022) 0.2% Total 100% 2.
Slide 22: Sustainable Financing
Sustainable Financing
Slide 23: Sustainable Financing
Sustainable Financing 23 Sustainable Finance Portfolio (BDT Cr) Portfolio Mix 4,867 4,372 4,292 3,977 2021 Q1'22 Q2'22 Q3'22 Achievement against BB targets (Q3, 2022) Q3, 2022 Sustainable Finance Green Finance Target 20% 5% Achievement 23.21% 4.03%
Slide 24: Distribution Network & Alternate Banking Channels
Distribution Network & Alternate Banking Channels
Slide 25: Distribution Network & ABC
25 Distribution Network & ABC 187 Branches 8 Sub Branches 475 SME Unit Offices 9 Regional Operations Offices 952 Remittance Delivery points
Slide 26: Digital Transformation
Digital Transformation
Slide 27: Digital Transformation
Digital Transformation 27 Focused Drive Added Values in Q3’22 Coming up in Q4’22 Enhance Customer Experience New features launched in Astha Integration with Binimoy (IDTP) enabling customers to enjoy money Grow Revenue Launched Digital Lending App (Shubidha) transfer mobility Reduce Cost Automation
Slide 28: Financials Q3'22
Financials Q3’22
Slide 29: Customer Asset (EOP)
Customer Asset (EOP) 29 BDT’ Billion As per BB BBL SME Retail Corporate 37% 28% 24% 62% Growth 147 395 171 77 134 62 125 287 265 46 93 91 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Growth driven by all segments – aligned to strategy
Slide 30: Segmental Loans Mix (EOP)
Segmental Loans Mix (EOP) 30 BDT’ Cr (10 Mio.) As per BB SME Retail Corporate Q3’22 Q3’21 Q3’20 14,660 37% 17,135 9,073 43% 31% 39,501 13,440 9,323 28,735 47% 35% 12,547 26,503 47% 7,706 6,222 20% 22% 4,633 18% Asset distribution - aligned to strategy
Slide 31: Customer Deposit (EOP)
Customer Deposit (EOP) 31 BDT’ Billion BBL SME Retail Corporate 31% 13% 16% 89% Growth 354 181 62 111 55 278 270 47 157 154 77 59 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 Growth driven by all segments – aligned to strategy
Slide 32: Segmental Customer Deposits Mix (EOP)
Segmental Customer Deposits Mix (EOP) 32 BDT’ Cr (10 Mio.) SME Retail Corporate Q3’22 Q3’21 6,151 17% 11,118 Q3’20 32% 5,874 , 5,454 , 22% 20% 4,744 35,404 7,656 17% 28% 26,985 27,776 18,134 51% 15,657 , 58% 15,376 55%
Slide 33: CASA-TD Mix
CASA-TD Mix 33 Current Savings Term Q3’22 Q3’21 32% Q3’20 49% CASA 36% 51% 39% 31% CASA 61% CASA 50% 19% 50% 19% 25%
Slide 34: Yield, Cost of Deposit and Spread
Yield, Cost of Deposit and Spread 34 YOA COD (Pan Bank) Spread 11.6% 8.3% 8.0% 7.6% 7.8% 7.2% 7.3% 7.3% 7.4% 6.3% 5.4% 5.1% 4.7% 4.7% 4.1% 4.4% 4.1% 4.1% 5.3% 3.6% 3.9% 3.2% 3.3% 2.8% 2.9% 2.4% 2.1% Q1'20 Q2'20 Q3'20 Q1'21 Q2'21 Q3'21 Q1'22 Q2'22 Q3'22 Growing cost of deposit compressed spread
Slide 35: Achievements - Q3'22
Achievements - Q3’22 35 ❖ The Asian Banker Transaction Finance Award 2022 – 2 categories • The Best Transaction Bank in Bangladesh • The Best Cash Management Bank in Bangladesh ❖ South Asian Business Excellence Awards 2022: • Best Internet Banking Service Provider • Best Use of Mobile Technology in
Slide 36: Standalone Performance – Q3'22
Standalone Performance– Q3’22 36 ROE ROA BDT 1,921 Cr BDT 39,501 Cr 9.42% 1.08% Total Revenue 8% Loan (EOP) 31% 2021 : 11.00 % 2021 : 1.31 % Annualized Sep’21 : BDT 1,784 Cr Dec’21 : BDT 32,121 Cr EPS (BDT) NPL Coverage* 2.62 114% BDT 392 Cr Sep’21 : 2.82 Dec’21 : 124% PAT 7% Sep’21 : BDT 422 Cr CIR
Slide 37: Consolidated Performance – Q3'22
Consolidated Performance– Q3’22 37 ROE ROA BDT 2,731 Cr BDT 39,664 Cr 8.67% 0.89% Total Revenue 15% Loan (EOP) 31%* FY’21 : 10.38 % FY’21 : 1.11 % Annualized Sep’21 : BDT 2,368 Cr Dec’21 : BDT 32,214 Cr BDT 380 Cr EPS (BDT) NAV (BDT) PAT 12% 2.53 39.66 Sep’21 : BDT 339 Cr Sep’21 : 2.67 Dec’21 : 38.2
Slide 38: Income Statement (Standalone)
Income Statement (Standalone) 38 BDT’ Cr (10 Mio.) Particulars YTD Sep'22 YTD Sep'21 Δ Amt Δ % over Sep’21 Net interest income 1,136 1,043 93 9% Investment income 361 507 (146) -29% Commission, exchange and brokerage 406 223 183 82% Other operating income 18 11 7 65% Total operating income 1,921 1,7
Slide 39: Income Statement (Consolidated)
Income Statement (Consolidated) 39 BDT’ Cr (10 Mio.) Particulars YTD Sep'22 YTD Sep'21 Δ Amt Δ % over Sep’21 Net interest income 1,389 1,181 209 18% Investment income 503 628 (125) -20% Commission, exchange and brokerage 817 547 270 49% Other operating income 22 13 8.8 66% Total operating income 2,7
Slide 40: Total Revenue – Breakdown (YoY)
Total Revenue – Breakdown (YoY) 40 BDT’ Cr (10 Mio.) Particulars YTD Sep'22 YTD Sep'21 Δ Amt Δ % over YTD Sep'21 Interest income 2,042 1,608 435 27% Interest paid on deposits and borrowing etc. 906 564 342 61% Net interest income 1,136 1,043 93 9% Investment income 361 507 (146) (29%) Commission, br
Slide 41: CONSO Financials with each company's contribution
CONSO Financials with each company’s contribution 41 BDT’ Cr (10 Mio.) YTD Sep’22 YTD Sep’21 Impact Subsidiary BBL’s Share in BBL’s Share in BBL’s Share in PAT PAT PAT ▲ PAT PAT PAT ▲ BRAC EPL Investments Limited (8) (8) 6 6 (14) (14) BRAC EPL Stock Brokerage Limited 5 5 27 24 (22) (19) BRAC SAAJAN
Slide 42: Update - bKash
Update - bKash 4 BRAC BANK Nongr aifaiser
Slide 43: bKash: Key Metrics Q3'22
bKash: Key Matrices Q3’22 43 63.8 Mn 36.4 Mn 66.0% Customers Active customers Market share in (EOP) (EOP) Tnx. Vol 283.7K 571.1 Bn 312.3k Merchants Avg. Monthly Agents (EOP) Tnx Vol (EOP) (BDT)
Slide 44: Subsidiary Financials - bKash Limited
Subsidiary Financials - bKash Limited 44 BDT’ Cr (10 Mio.) Particulars Sep’22 Sep’21 Δ Amt Δ % over Sep’21 Gross revenue 2,855 2,328 526 23% VAT (352) (294) 58 20% Revenue 2,502 2,035 468 23% Cost of services (1,833) (1,557) 275 18% Gross profit 670 477 192 40% Operating and administrative expenses
Slide 45: Q3'22 Overview
Q3’22 Overview 45 • Strong performance aligning strategy; outpaced peers and industry • Strong growth in customer number & balance sheet • Continued investment in people, infrastructure & technology • Digital Transformation continuing full swing • Portfolio quality continues to improve • Higher cost
Slide 46: Thank You
THANK YOU For any queries, please write to us on [email protected]
Slide 47: Q&A
Q &A