Desk Report,
BRAC Bank’s profit of Tk 906 crore in six months
In the first six months of this year, BRAC Bank’s consolidated income from government treasury bills and bonds has exceeded Tk 2,000 crore. In the first six months of this year, the bank’s income from this sector increased by Tk 852 crore compared to the first six months of last year, which is more than the bank’s actual interest income. And relying on the additional income from treasury bills and bonds, this leading private sector bank has made a profit of more than Tk 900 crore in the first half of this year.
BRAC Bank’s profit of Tk 906 crore in six months
This information has been revealed from BRAC Bank’s half-yearly financial report. The half-yearly financial report was approved at the meeting of the bank’s board of directors last Monday. And as a company listed on the stock market, various information about the financial report has been disclosed to investors through the websites of the main stock market Dhaka Stock Exchange (DSE) and the other stock market Chittagong Stock Exchange (CSE). According to the financial report, BRAC Bank made a consolidated profit after tax of Tk 906 crore in the six months from January to June. Which amounted to Tk 591 crore in the same period last year. Accordingly, the bank’s after-tax profit has increased by Tk 3.15 billion or more than 53 percent in a year. This growth in the bank’s profit has been possible mainly due to a significant increase in income from government treasury bills and bonds. In the first six months of this year, BRAC Bank’s income from government treasury bills and bonds has increased by Tk 8.52 billion or 71.5 percent compared to the first six months of last year. Not only that, in the entire year of 2024, BRAC Bank earned Tk 2,881 billion from interest on government treasury bills and bonds. In the first six months of this year, it has exceeded Tk 2,444 billion.
According to the financial report, in the first six months of this year, BRAC Bank and its subsidiaries have earned a combined income from loan interest of Tk 3,688 billion. The amount was Tk 2,642 billion in the same period last year. Accordingly, the income from loan interest has increased by Tk 1,466 billion or about 40 percent in a year. Along with the increase in interest income on loans, the bank’s interest expense on deposits has also increased. In the first half of this year, the bank’s interest expense on deposits was Tk 2,871 crore. In the same period last year, it was Tk 1,779 crore. Accordingly, the interest expense on deposits has increased by Tk 1,92 crore or more than 61 percent in a year.
People involved in the banking sector say that for a long time, the interest rate on loans and deposits in the banking sector was limited to single digits. Then, due to various irregularities and scandals, there was a severe liquidity crisis in the banking sector. The pressure to lift the fixed interest rate also intensified. At one stage, the interest rate on bank loans and deposits was gradually lifted. Currently, the interest rate on loans and deposits in the banking sector is market-based. As a result, the interest rate on loans has increased to more than 14 percent. And the interest rate on deposits has increased to more than 10 percent. Due to this, as the banks’ income from interest on loans has increased, so has the interest expense on deposits.
According to the financial report, BRAC Bank made an operating profit of Tk 1,756 crore in the first half of this year. In the same period last year, it was Tk 1,254 crore. Accordingly, the bank’s operating profit has increased by Tk 502 crore in a year.
When asked about the higher income from government securities than interest, BRAC Bank’s Deputy Managing Director and Head of Treasury Department Md. Shaheen Iqbal told Prothom Alo that the demand for loans is currently low in the banking sector. Due to this, most of the banks that have investable surplus liquidity have invested in government securities. As a result, the income of the banks from this sector has increased. The more investment, the higher its income. If the demand for loans increases again in the future, then the interest in investing in government securities will also decrease. The income from that sector will also decrease.
