BRAC Bank Ltd

Earnings Disclosure Program

YTD Q3’20

Opening Statement

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.

2

Forward Looking Statements

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, businesses

and performance of the Company and its subsidiaries and the other matters described in this document. Generally, words such as ‘‘may’’,

‘‘could’’, ‘‘will’’, ‘‘expect’’, ‘‘intend’’, ‘‘estimate’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’, ‘‘continue’’ or similar expressions are intended to

identify forward looking statements.

Forward looking statements involve inherent risks and uncertainties. They are not guarantees of future performance and actual results could

differ materially from those contained in the forward looking statements. Recipients should not place reliance on, and are cautioned about relying

on, any forward looking statements. Forward looking statements are based on current views, estimates and assumptions and involve known and

unknown risks, uncertainties and other factors, many of which are outside the control of the Group and are difficult to predict. Such risks, factors

and uncertainties may cause actual results to differ materially from any future results or developments expressed or implied from the forward-

looking statements.

No statement in this document is intended to be a profit forecast or to imply that the earnings of BRAC Bank Ltd. and/or its subsidiaries for the

current year or future years will necessarily match or exceed the historical or published earnings of the Company and/or its subsidiaries. Each

forward looking statement speaks only as of the date of the particular statement. Except as required by any applicable law or regulations, the

BRAC Bank Ltd. expressly disclaims any obligation or undertaking to release publicly or make any updates or revisions to any forward looking

statement contained herein whether as a result of new information, future events or otherwise.

Important notice

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial

instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

3

Table of Contents

SL No Content Page No

1 Economic Outlook and Market Update 5

2 SME 10

3 Retail 18

4 Corporate 24

5 Loans, Deposit and Portfolio Mix 28

6 Treasury and FI 36

7 Risk Management 38

8 Alternative Banking Channel 42

9 Digital Initiatives 45

10 Financial Performance Q3’20 48

12 Outlook Q4’20 56

12 Q&A 57

13 Appendix 58

4

Bangladesh Pandemic Situation

5

Daily New Cases are

showing slight upward trend

One of the Lowest Fatality Rate among the Top

Infected Countries

Infection rate down, medical treatment improved, fatality rates low, activities normalized

Bangladesh Macro Economy in Covid Pandemic Period

6

Remittance

$8.82 bn earning in Jul-Oct period

43% y-o-y growth

Forex Reserve

Forex reserve crossed $40 bn for

the first time in October, mainly

supported by remittance

Q1’FY21 export earning $ 9.89 bn

, 2.58% y-o-y growth

Export

Encouraging signs of economic recovery

Bangladesh GDP Growth Outlook

7 General Consensus about positive GDP growth & faster recovery

Strong Economic Indicators – Hopes for U shaped Recovery of Bangladesh Economy

Economic Outlook

8

Economic Outlook and Market Update

9

Economy

• GDP Growth Positive despite Pandemic, faster recovery expected

• BoP favorable, lower Oil and Cotton price will further support recovery

• Good Monetary & Fiscal stimulus equivalent to $12.3 Bln approx.

• Having sufficient Fiscal & Monetary space

Market

• Accommodative and expansionary Monetary Policy, very liquid Money Market, expected to continue until recovery

• Fx reserves $41+ Bn, USD liquidity comfortable, BB buying USD to avoid BDT appreciation

• Remittance increased by 48.54% in Q3’20 compared to Q3’19

• GSec Yield contracted significantly on the back of higher demand

• General Loan moratorium offered till Dec’20

SME

Q3’20 Business Highlights

Survey Date Status

Open Partially Open Closed

9-Apr-20 33% - 67%

17-May-20 23% 41% 36%

27-Jun-20 64% 32% 4%

17-Aug-20 98.50% - 1.50%

78.90% 56%

41%

17-Aug27-Jun17-May

Employee Presence

Cash Flow Status 17-Aug 27-Jun 17-May 9-Apr

SMEs able to Collect Receivables

79% 69% 23% 15%

Affordability up to 1 Month at Least

95% 95% 85% 82%

Sales% Curve (of Open Businesses)

Nationwide SME Businesses Trend

SME – Summary of Survey Findings – Apr’20-Aug’20

98.5% SMEs are in Operation Almost 80% Employees are back to work 80% SMEs have collected their receivables – Supply Chain Revived

# of Loan Disbursements - SME

21,233

3,176

22,732

Q1' 20 Q2' 20 Q3' 20

SME

54

20

26

Q1' 20 Q2' 20 Q3' 20

MFI

19,523

2,595

21,397

Q1' 20 Q2' 20 Q3' 20

Small

1,656

561

1,309

Q1' 20 Q2' 20 Q3' 20

Emerging

12

# of New Deposit - SME

307 364

1,178

Q1' 20 Q2' 20 Q3' 20

Emerging 4,765

1,087

5,164

Q1' 20 Q2' 20 Q3' 20

Branch

12,181

3,117

16,953

Q1' 20 Q2' 20 Q3' 20

SME

7,097

1,662

10,611

Q1' 20 Q2' 20 Q3' 20

Small

13

SME – Q3’20 Update

CUSTOMERS

• 6,000 new customers in Q3’20 – 10 times more customers compared to Q2’20

• Total number of Customers stands at 3.11 lac (1.49 lac lending customers)

ASSETS

• Disbursed 22,732 loans in Q3 - 7 times more loans compared to Q2’20

• Assets grew by BDT 1,028 Cr - 5 times more growth compared to Q2’20

• Total Asset Portfolio BDT 13,275 Cr. 21% Growth from Q3’19.

• Disbursed BDT 302 Crore from Government Stimulus Package.

DEPOSITS

• Deposit grew by BDT 575 Cr in Q3 - 5% more growth than Q2

• Total Deposit Portfolio BDT 4,588 Cr. 30% Growth from Q3’19.

• In Q3 CASA grew by 565Cr – Highest CASA Growth

• CASA portion in Deposit Portfolio increased to 62% which was 57% in Q2

TRADE BUSINESS

• Trade volume in Q3’20 - BDT 195 Cr - 28% growth compared to Q3’19

• Commission Earnings in Q3’20 - BDT 2.4 Cr - 40% more than Q2’20.

PORTFOLIO QUALITY

• 76% Customers under Moratorium.

• 30% customers (under moratorium) paid BDT 2,112 Crore in Q3

• PAR 2.4% and NPL 2.4% (with moratorium)

PRODUCTS

• “Digonto” Product launched in Collaboration with BASIS

COST/INCOME RATIO

• Reimbursement of at actual costs initiated.

• 6 Unit Offices Merged – Annual saving BDT 1.68 Crores.

• Incremental NFI of BDT 1 Cr. from new Asset and Liability SOC.

• C/I Ratio Reduced by 21% compared to Q2’20

REGULATOR’S SUPPORT

• Extension of Moratorium up to Dec’20

SME – Q3’20 Update

SME - Q4’20 Priorities

CUSTOMERS

• Continue the Growth Momentum - Focus on Small Business & New Deposit customers

• Venture into new customer segments through customized products & partnerships

ASSETS

• Substantially Grow in Small Business Segment as Businesses have resumed.

• Increase Staff Productivity – Incremental Business with same headcount.

• Improve Efficiency - Digitize lending operation.

• Roll-out Scorecards - standardized & automated credit decisions fast

• Lending through partnerships – FinTech, E-Commerce Platforms, Telcos.

DEPOSITS

• Accelerate the Growth Momentum with strong focus on CASA

• Further improve CASA:TD Mix

TRADE BUSINESS

• Accelerate the Growth – only source of fee income

Q4’20 Priorities - SME

PORTFOLIO QUALITY

• Lift Moratorium from majority of SME customers (70%) as businesses have resumed.

• Enhanced Risk Management - strengthen relationship with customers

• Strengthen the Recovery Team

PRODUCTS

• Design customized products for IT/IS sector through collaboration with Business Associations

• Launch New Asset & Liability Products to cater to more Women Entrepreneurs

COST/INCOME RATIO

• Further Reduction of Cost/Income Ratio

• Target is to achieve pre-rate cap C/I Ratio by Q4’21

REGULATOR’S SUPPORT

• Credit Guarantee Scheme for Cottage, Micro & Small customers

Retail

Q3’20 Business Highlights

CUSTOMERS

• YoY 25% - 69K new to bank customer till YTD Sept 2020

• Total TARA customer 89K

DEPOSITS

• YoY 15% and YTD 10% - BDT 1,349 crores and 67% CASA Mix

• Savings COD was 0.98%; overall Retail COD 1.52% from FY’19.

• Focusing on low cost deposit, Process optimization with various ongoing projects

LOANS & CREDIT CARDS

• Loans portfolio BDT 4,593 crores; YoY 4%

• Credit Card outstanding BDT 695 crores; YoY 18%

Q3’20 Highlights – Retail

19

PORTFOLIO QUALITY

• PAR 5.6% compared to 4.4% last year due to COVID-19 impact

• NPL 1.8% compared to 2.2% last year

• Only 5% of Retail Lending Portfolio is under Moratorium coverage

ACQUIRING BUSINESS & PARTNERSHIPS:

• New Merchants: 1007, New POS Deployed: 1,398, New Discount Partners: POS 496 and 148 E-Com, New Payflex

Partners 170

REMITTANCE:

• YoY 51% in Remittance Transactions - 845K and YoY 39% in NFI - BDT 2.45 crores during Q3’20

Q3’20 Highlights – Retail Contd.

20

# of New Deposit - Retail

18,476

10,032

25,225

Q1' 20 Q2' 20 Q3' 20

Term Deposit

3,011

710

1,456

Q1' 20 Q2' 20 Q3' 20

Current Deposit

19,408

6,327

19,037

Q1' 20 Q2' 20 Q3' 20

Savings Deposit

40,895

17,069

45,718

Q1' 20 Q2' 20 Q3' 20

Total Deposit

21

# of New Loans - Retail

178

8

14

Q1' 20 Q2' 20 Q3' 20

Auto Loan

103

4 17

Q1' 20 Q2' 20 Q3' 20

Home Loan

4,371

65 778

Q1' 20 Q2' 20 Q3' 20

Personal Loan

18,215

593 5,667

Q1' 20 Q2' 20 Q3' 20

Credit Card

22

DEPOSITS

• Continue to focus on CASA - grow organic Savings balances

• Continued focus on revamping Employee Banking propositions with disruptive offers; capture market

share with new relationships working jointly with Corporate and leverage PB RMs

LOANS & CREDIT CARDS

• Focus on selective CC & PL acquisition on chosen segments with earning stability

• Sales App: BBL Obichol - Phase 1 PL file sourcing

COLLECTION & RECOVERY

• Focus on Collections & Recovery with New teams (Retail & Branch sales)

• New KPIs & Incentive Scheme

• Changed Process

Q4’20 Priorities - Retail

23

Corporate

Q3’20 Business Highlights

Corporate

Deposit

• 10% YoY average portfolio growth

• 54.9% YoY CASA growth which has reduced YoY COD by 34.6%

Cash Management

• Customized and solution driven approach

• Comprehensive Product offerings i.e. payment, collection, payroll etc.

• Focus on Digitization which is delivering results

Loans

• 9% YoY de-growth in avg. portfolio in line with risk appetite

• Tk. 54.6 cr. reduced from exit portfolio and recovered Tk. 7.2 cr. from previously written off accounts

• 94% of corporate loan portfolio is rated by External Credit Rating agency having positive impact on our CAR

25

L/C Volume: (Import & Export)

247

110

223

Q1' 20 Q2' 20 Q3' 20

Export LC USD Million

308

135

214

Q1' 20 Q2' 20 Q3' 20

Import LC. USD Million

26

Q4’20 Priorities - Corporate

Deposits

• Continuous focus on transaction banking vis-à-vis CoD reduction

• Enhance focus for transforming account activity into digital platform

Loans

• Exploring project financing opportunities & focus on govt. stimulus packages

• Grow portfolio in proven accounts and extend moratorium support to stressed accounts under pandemic situation

• Focus on growing OBU portfolio & trade based solutions

Portfolio Monitoring

• Quarterly monitoring of sales, stock, receivable, collection and Bank liability position

• Quarterly review of accounts under stressed situation and revisit account strategy

27

Loans, Deposit, Portfolio Mix

+ 2

,00

9

+ 3

,89

9

Customer Deposits (EoP)

BBL SME Retail Corporate

CAGR 17% 24% 18% 13%

BDT’ (Billion)

+ 4

17

29

32% 201

241

277

Q3 2018 Q3 2019 Q3 2020

15%

31

36

47

Q3 2018 Q3 2019 Q3 2020

111

133

154

Q3 2018 Q3 2019 Q3 2020

15%

59

72

75

Q3 2018 Q3 2019 Q3 2020

5%

Growth driven by Retail, in line with strategy

+ 1

08

+ 8

92

Loans & Advances (EoP)

BBL SME Retail Corporate

CAGR 9% 13% 8% 6%

BDT’ (Billion)

+ 3

,98

1

+ 1

,32

1

+ 4

41

30

221

251

265

Q3 2018 Q3 2019 Q3 2020

6%

99

113

125

Q3 2018 Q3 2019 Q3 2020

11%

40

44 46

Q3 2018 Q3 2019 Q3 2020

4%

83

93 93

Q3 2018 Q3 2019 Q3 2020

0%

SME loan book continues to be prioritized, in line with core strategy

Loans and Advances Mix (EoP)

31

BDT’ Cr

9,856 ,

45%

3,974 ,

18%

8,279 ,

37%

Q3 2018

11,330 ,

45%

4,442 ,

18%

9,299 ,

37%

Q3 2019

SME Retail Corporate

12,547 ,

47%

4,633 ,

18%

9,323 ,

35%

Q3 2020

SME loan book continues to be prioritized, in line with core strategy

Customer Deposits Mix (EoP)

32

BDT’ Cr

Retail Deposit is growing as per our strategy

3,077 ,

15%

11,116 ,

55%

5,934 ,

30%

Q3 2018

3,581 ,

15%

13,314

, 55%

7,172 ,

30%

Q3 2019

SME Retail Corporate

4,744 ,

17%

15,376 ,

56%

7,545 ,

27%

Q3 2020

Deposit (CASA-TD) Mix

33

BDT’ Cr

Focus on low cost deposit paying dividend

Current

23%

Savings

23%

Term

54%

2018

CASA

46%

Current

21%

Savings

21%

Term

58%

2019

CASA

42%

Current

24%

Savings

26%

Term

50%

Q3'2020

CASA

50%

Yield, Cost of Deposit and Spread

34

10.60% 10.90% 11.28%

12.02%

8.26% 8.02%

3.80%

4.80% 5.28% 5.15%

4.26% 3.90%

6.80% 6.10% 6.00%

6.87%

4.00% 4.12%

2017 2018 2019 Q1'2020 Q2'2020 Q3'2020

YOA COD (Pan Bank) Spread

Continuous focus on Low Cost Deposit to compensate Lending Rate Cap impact

Loans to Deposit Ratio

35

82.0% 80.2% 80.4% 82.2% 83.0% 83.2% 83.7% 81.2% 81.0%

75.4% 75.9% 74.4% 78.1%

Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20

Treasury & FI

Q3’20 Business Highlights

Treasury & FI

37

Large Govt. Securities Position:

• Large GSec position paid off, getting good return

Large Trading Position:

• Successfully took position to take advantage of the market

• Managed large money market trading position at a healthy spread

• Efficient use of money market products (repo, swap, term etc.)

Liquidity:

• Maintaining very healthy liquidity position; improved funding mix

• Ensured sufficient USD liquidity to avail any opportunity

Credit Rating:

• Only bank to maintain Ba3 rating by Moody’s and rated by S&P; best rated by Local raters

Leader in Treasury Business

Risk Management

Risk Management

39

Loan Classification & Provisioning Standard

• Classification : BBL standard is compliant with current BB standard. Q3 2020 NPL is 3.20%

• Provisioning : Remaining conservative due to pandemic, Maintained BDT 2.26 billion in Specific Provisions in Q3

• Credit Coverage : Coverage increased to 151%; 89% NPL coverage based on 2012 circular

• Cost of Credit : 114 bps in Q3 2020; 1.5x vs last four years avg

Enhanced Risk Mgt

• Revised risk appetite statement

• Enhanced monitoring & early alert system

• Monthly monitoring of sales, stock, receivable, collection and Bank liability position

• Portfolio review of major sectors

• Review of account relationship strategy on Quarterly basis, due on Sep-20, Dec-20

Collection & Recovery

• Strengthen Collection & Recovery teams

• New KPIs & Incentive Scheme

Asset Quality

(30 day portfolio at risk)

BBL

40

SME Retail Corporate BDT’ Cr (10 Mio.)

New initiative to maintain portfolio quality put in place

1,150

1,513 1,392

Q3 2018 Q3 2019 Q3 2020

5.2% 6.0% 5.3%

335

490

397

Q3 2018 Q3 2019 Q3 2020

3.4% 4.3% 3.2%

174 194 261

Q3 2018 Q3 2019 Q3 2020

4.4% 4.4% 5.6%

641

829 734

Q3 2018 Q3 2019 Q3 2020

7.7% 8.9% 7.9%

Asset Quality

(Non performing loans)

BBL

41

SME Retail Corporate BDT’ Cr (10 Mio.)

New initiative to maintain portfolio quality put in place

819 852 848

Q3 2018 Q3 2019 Q3 2020

3.7% 3.4% 3.2%

346 281 276

Q3 2018 Q3 2019 Q3 2020

3.5% 2.5% 2.2%

363 474 490

Q3 2018 Q3 2019 Q3 2020

4.4% 5.1% 5.3%

109 97 82

Q3 2018 Q3 2019 Q3 2020

2.7% 2.2%

1.8%

Alternate Banking Channels

ATM/CDM Internet Banking Agent Banking Call Center

373 ATMs

88 CDMs

183,000 Users 203,000 Calls Served/month 378 AB Outlets

**Cumulative figure as of September 30, 2020

Total AB Outlets 378

Districts Covered 64

Rural 267

Urban 111

46,738 Accounts Loan

Disbursement BDT

461.6 Crore

378 AB Outlets

Distributor

Bill Collection

BDT

164.4 Crore

Total Txn.

BDT 5,165 Crore

Remittance

BDT 76.7 Crore

Deposit

BDT 161 Crore

Loan

Repayment BDT

1,983 Crore

SME 249

Standalone 129 301 28

Agents

Agent Banking Reach at a Glance

1 43

Alternative Banking Channel: Q3’20

44

Agent Banking

• Increased inward foreign remittance disbursement

• Expanded corporate distributor bill collection capabilities

• Increased new customer acquisition and deposit mobilization

ATMs & CDMs

• Optimization of Cash In Transit (CIT) services for ADC and IBCM.

• New features in CDM user interface to enhance customer experience.

Call Center

• Introduced dedicated hotline for “Agent Banking Outlets”

• Service diversion from Branches to Call Centre by accepting certificate and statement requests from customers to avoid

Branches.

Internet Banking

• International OTP generation for IB transactions

• Security enhancements (password, ID lock notification, ID self-deactivation)

• RFCD account to card payment

Digital Initiatives

Digital Initiatives

Projects

• Key projects are on track despite on going COVID-19 Pandemic obstacles

• Number of projects completed and operational in Q3’20

Activation

• Significant growth in Internet Banking (IB) new customer enrollment, activations and transactions volume

• ATM channel attracted new customers during the Pandemic situation, handling 20% more volume

• Call Center used significant number of outbound agents to activate customers into digital channel

Customer Experience

• Alternative Banking Channel (IB, ATM) transaction limit enhanced

• Enhanced product and services to move customer digitally

46

0.0 K

1.0 Mio

2.0 Mio

3.0 Mio

4.0 Mio

5.0 Mio

6.0 Mio

0.0 K

50.0 BN

100.0 BN

150.0 BN

200.0 BN

250.0 BN

300.0 BN

Nov/19 Dec/19 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20

Alternate - AMT Manual - AMT Alternate - TRX Manual - TRX

37% Digital

Transactions Shift

23% Digital

Focus on migrating transactions from analog to digital

Financials

Q3’20

Standalone Performance– YTD Q3’20

Total Revenue

Q3 2020 : 1,503

Q3 2019 : 1,577

-5% PAT

FY’17 - BDT 550 Cr

FY’16 - BDT 408 Cr

FY’17 : BDT 21,693 Cr

FY’16 - BDT 18,148 Cr

20%

FY’17 : BDT 20,343 Cr

FY’16 : BDT 17,584 Cr

17% Customer Deposit (EOP)

Q3 2020 : 27,665

Q3 2019 : 24,066

15% Loan (E0P)

Q3 2020 : 26,504

Q3 2019 : 25,075

6%

PAT

Q3 2020 : 280

Q3 2019 : 370

-25%

EPS Q3 2020 : 2.11

Q3 2019 : 2.79

ROA Q3 2020 : 0.98%

Q3 2019 : 1.49%

ROE Q3 2020 : 9.09%

Q3 2019 : 14.03%

CIR Q3 2020 : 60%

Q3 2019 : 54%

CRAR Q3 2020 :14.60 %

Q3 2019 : 15.12%

NPL Coverage* Q3 2020 : 3.2 %, 151%

Q3 2019 : 3.4 %, 114%

BDT’ Cr (10 Mio.)

NAV Q3 2020 : 32.55

Q3 2019 : 27.86

Spread Q3 2020 : 4.7%

Q3 2019 : 6.0 %

49

* SP Coverage : 108% (Q3 2019: 76%)

Consolidated Performance–YTD Q3’20

Total Revenue

Q3 2020 : 2,094

Q3 2019 : 2,160

-3% PAT

FY’17 - BDT 550 Cr

FY’16 - BDT 408 Cr

FY’17 : BDT 21,693 Cr

FY’16 - BDT 18,148 Cr

20%

FY’17 : BDT 20,343 Cr

FY’16 : BDT 17,584 Cr

17% Deposit (EOP)

Q3 2020 : 32,660

Q3 2019 : 27,876

17% Loan (E0P)

Q3 2020 : 26,589

Q3 2019 : 25,155

6%

PAT

Q3 2020 : 238

Q3 2019 : 309

-23%

EPS (BDT)

Q3 2020 : 2.01

Q3 2019 : 2.52

ROA

Q3 2020 : 0.82%

Q3 2019 : 1.19%

ROE

Q3 2020 : 8.31%

Q3 2019 : 12.05%

CIR

Q3 2020 : 73%

Q3 2019 : 69%

CRAR

Q3 2020 : 15.06%

Q3 2019 :16.54 %

NAV (BDT)

Q3 2020 : 33.81

Q3 2019 : 29.14

BDT’ Cr (10 Mio.)

50

Consolidated PAT – by Entity

Consolidated -23% and Solo -25% BDT’ Cr (10 Mio.)

Subsidiary/Associate

YTD Sep'20 YTD Sep'19 ∆

PAT BBL’s Share

in PAT PAT

BBL’s Share

in PAT PAT

BBL’s Share

in PAT

BRAC EPL Investments Limited 0.05 0.05 (20) (20) 20 20

BRAC EPL Stock Brokerage Limited 8 7 5 4 3 3

BRAC SAAJAN Exchange Limited 1 0.4 2 1 (1) (1)

b-Kash Limited (50) (21) (44) (18) (7) (3)

Sub-Total (42) (13) (57) (33) 16 20

BRAC Bank Ltd 280 280 370 370 (91) (91)

Share of profit/(loss) of associates - - (3) (3) 3 3

Gain/(loss) on disposal of associates - - 1 1 (1) (1)

Intercompany 0.2 - (1) (1) 1 1

Conso PAT 238 266 309 334 (71) (68)

Contribution from Subsidiary in CONSO PAT -18% -5% -19% -10%

51

Financial Results: Income Statement (SOLO)

52

BDT’ Cr (10 Mio.)

Particulars YTD Q3 2020 YTD Q3 2019 Δ Amount Δ %

Net Interest Income 844 1,133 (289) -26%

Other Operating Income 659 444 215 48%

Total Revenue 1,503 1,577 (74) -5%

Staff Cost 476 406 70 17%

Operating Cost 429 451 (22) -5%

Total Expenditure 905 857 49 6%

Operating Profit 598 720 (123) -17%

General Provision 4 (18) 23 -123%

Specific Provision 226 140 86 61%

Write off recovery (35) (54) 19 35%

Capital Market Provision (11) 45 (56) 125%

Net Debt Charge 183 113 71 63%

Profit Before Tax 414 608 (193) -32%

Tax Charges 135 237 (102) -43%

Profit After Tax 280 370 (91) -25%

YoY Performance - bKash Limited

53

Q3'20 Q3'19 YTD Sep'20 YTD Sep'19 Q3 20 Vs 19 YTD Q3 20 Vs 19

Gross Revenue (mn) 7,570 6,215 20,607 18,932 21.8% 8.8%

Gross Margin 2,473 1,498 6,020 4,379 65.1% 37.5%

Gross Margin % 33% 24% 29% 23% 8.6% 6.1%

Customer Number 47.1 35.2 47.1 35.2 33.8% 33.8%

*Figures in Mn

54

Financials - bKash Limited BDT’ Cr (10 Mio.)

Particulars YTD Sep-20 YTD Sep-19 Δ Amount Δ %

Gross Revenue 1,898 1,893 5 0%

VAT 227 217 10 5%

Net Revenue 1,671 1,676 (5) 0%

Cost of Services 1,232 1,238 (7) -1%

Gross Profit 439 438 1 0%

Interest Income 43 63 (20) -31%

Net Income 483 501 (18) -4%

Commercial 124 179 (55) -31%

Marketing 47 75 (28) -38%

Other Expenses 366 292 74 26%

Total Operating Expenses 536 545 (9) -2%

Operating Profit (54) (45) (9) 20%

Donor Grant and WPPF 1 0 1 1100%

Comprehensive Income (Before Tax) (53) (44) (8) 19%

Total Tax Expense/(Income) (2) (1) (1) 175%

Profit After Tax (50) (44) (7) 16%

Financial Results: Income Statement (CONSO)

BDT’ Cr (10 Mio.)

Particulars Q3 2020 Q3 2019 Δ Amount Δ %

Net Interest Income 1,062 1,346 (284) -21%

Other Operating Income 1,032 814 218 27%

Total Revenue 2,094 2,160 (66) -3%

Staff Cost 693 582 111 19%

Operating Cost 843 911 (68) -7%

Total Expenditure 1,535 1,492 43 3%

Operating Profit 559 667 (108) -16%

Profit/(loss) control of subsidiaries 0 -3 3 -100%

Gain/(loss) on disposal/loss of control

of subsidiaries 0 1 (1) -100%

Net Debt Charge 184 113 71 63%

Profit Before Tax 375 552 (177) -32%

Tax Charges 137 242 (105) -43%

Profit After Tax 238 309 (72) -23%

55

Outlook- Q4’20

Environment

• Fundamentals Positive, Comfortable BoP, FX reserves

• Accommodative monetary policy & lower interest regime expected to continue

• Support expected in terms of Digital & other Banking Regulations

• Lending interest rate caps to continue for foreseeable future

• GoB & BB Stimulus package support expected to continue

Business Strategy

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Q & A

APPENDIX

Subsidiary Financials – BRAC EPSL BDT’ Cr

Particulars YTD Sep-20 YTD Sep-19 Δ Amount Δ %

Net Interest Income 1.7 2.0 (0.3) -15%

Other income/Commission 33.5 34.3 (0.8) -2%

Total Revenue 35.2 36.3 (1.1) -3%

Staff Cost 9.4 10.6 (1.1) -11%

Other operating expenses 13.2 15.9 (2.6) -17%

Total Expenditure 22.7 26.4 (3.8) -14%

Operating Profit 12.5 9.9 2.7 27%

Total Provision - - - -

Profit before Tax 12.5 9.9 2.7 27%

Provision for Tax 4.6 5.2 (0.6) -11%

Profit after Tax 7.9 4.7 3.2 69%

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Subsidiary Financials - BRAC Saajan BDT’ Cr

Particulars YTD Sep-20 YTD Sep-19 Δ Amount Δ %

Net Interest Income (1.1) (1.2) 0.1 -10%

Other income/Commission 69.7 60.5 9.2 15%

Total Revenue 68.6 59.3 9.3 16%

Staff Cost 11.3 12.0 (0.7) -6%

Other operating expenses 56.4 44.8 11.7 26%

Total Expenditure 67.7 56.8 11.0 19%

Operating Profit 0.9 2.5 (1.7) -66%

Total Provision 0.3 0.3 0.0 -

Profit before Tax 0.5 2.3 (1.7) -76%

Provision for Tax - 0.5 (0.45) -100%

Profit after Tax 0.5 1.8 (1.3) -70%

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Subsidiary Financials – BRAC EPIL BDT’ Cr

Particulars YTD Sep-20 YTD Sep-19 Δ Amount Δ %

Net Interest Income (9.4) (8.8) (0.6) 7%

Other income/Commission 13.9 (6.9) 20.8 302%

Total Revenue 4.5 (15.6) 20.1 129%

Staff Cost 2.1 2.3 (0.2) -9%

Other operating expenses 2.3 2.3 (0.04) -2%

Total Expenditure 4.4 4.7 (0.3) -6%

Operating Profit 0.1 (20.3) 20.4 101%

Total Provision - - - -

Profit before Tax 0.1 (20.3) 20.4 101%

Provision for Tax 0.1 0.1 (0.01) 21%

Profit after Tax 0.05 (20.4) 20.4 100%

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