BRAC Bank Audited Financial Statements 2022

BRAC Bank Limited
Independent Auditor's Report and Consolidated

& Separate Financial Statements
as at and for the year ended 31 December 2022
BRAC Bank Limited and its subsidiaries
Consolidated Balance Sheet
As at 31 December 2022
2022 2021
Particulars Note
Taka Taka
PROPERTY AND ASSETS
Cash 4 31,871,593,250 23,459,424,430
Cash in hand (Including foreign currency) 11,918,067,777 9,207,161,626
Balance with Bangladesh Bank and its agent bank(s) 19,953,525,473 14,252,262,804
(including foreign currency)
Balance with other banks and financial institutions 5 52,951,344,277 78,261,312,910
Inside Bangladesh 47,797,240,230 70,561,465,538
Outside Bangladesh 5,154,104,047 7,699,847,372
Money at call on short notice 6 6,826,376,000 3,500,000,000
Investments 7 116,551,993,858 70,068,593,304
Government 107,319,008,486 60,998,642,835
Others 9,232,985,372 9,069,950,469
Loans and advances 8 412,084,750,584 322,135,188,439
Loans, cash credit, overdrafts etc. 222,711,877,598 169,128,372,833
Small and medium enterprises 187,247,111,913 150,749,009,625
Bills purchased and discounted 2,125,761,073 2,257,805,981
Fixed assets including premises, furniture and fixtures 9 13,463,514,348 12,834,169,424
Other assets 10 20,803,842,677 16,222,224,464
Non-banking assets 11 11,341,700 4,541,700
Goodwill 12 1,372,563,393 1,427,468,911
Total property and assets 655,937,320,087 527,912,923,582
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 13 38,908,810,526 24,150,953,707
Borrowings from central bank & government agencies 14 42,184,501,809 23,175,903,824
Affordable housing bond 15 4,751,000,000 -
Money at call on short notice - -
Deposits and other accounts 16 447,058,816,329 364,329,900,482
Current accounts and other accounts 187,855,608,325 164,417,743,536
Bills payable 1,739,503,614 2,367,889,416
Savings deposits 71,890,957,598 68,334,576,200
Term deposits 182,973,780,522 127,956,809,129
Other deposits 2,598,966,270 1,252,882,201
Other liabilities 17 42,004,580,813 39,308,075,071
Total liabilities 574,907,709,477 450,964,833,084
Capital and shareholders' equity
Paid up capital 18.2 14,965,853,280 13,921,723,990
Share premium 18.7 3,853,767,032 3,853,767,032
Statutory reserve 19 11,148,169,834 10,067,956,958
Dividend equalization fund 20 355,218,455 355,218,455
Revaluation reserve on govt. securities 21 1,337,245,165 2,490,292,927
Fair value reserve 78,920,073 78,920,073
Foreign currency translation reserve 23 328,402,260 16,632,383
Surplus in profit and loss account/Retained earnings 24.1 29,086,051,630 26,402,962,532
Total shareholders' equity 61,153,627,729 57,187,474,350
Non-controlling interest 24.2 19,875,982,881 19,760,616,148
Total equity 81,029,610,610 76,948,090,498
Total liabilities and equity 655,937,320,087 527,912,923,582
11
Consolidated Balance Sheet
2022 2021
Particulars Note
Taka Taka
Off balance sheet items
Contingent liabilities
Acceptances and endorsements 25 83,028,540,659 50,478,536,940
Irrevocable letters of credit 25 27,451,963,219 26,598,203,443
Letter of guarantees 25.2 18,607,062,875 11,793,414,671
Bills for collection 25.3 21,612,714,770 16,438,866,245
150,700,281,523 105,309,021,299
Other commitments
Swap deals with banks and customers 25.4 13,070,011,143 10,726,189,903
Spot and forward deals with banks and customers 25.4 2,074,308,915 18,161,597,791
15,144,320,058 28,887,787,694
Total off balance sheet items 165,844,601,581 134,196,808,993
Net asset value (NAV) per share 49 40.86 38.21
The notes 1 to 51.5 and annexures A to J form an integral part of these financial statements.
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Managing Director and CEO Director
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Director Chairman
As per our report of same date.
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Dhaka, 11 April 2023 Sabbir Ahmed FCA, Partner
DVC No: 2304100770AS807408 Enrolment No: 770
Hoda Vasi Chowdhury & Co
Chartered Accountants
12
Consolidated Profit and Loss Account
For the year ended 31 December 2022
2022 2021
Particulars Note
Taka Taka
Interest income 27 31,365,476,735 24,225,217,948
Interest paid on deposits and borrowing etc. 28 12,953,873,731 7,912,883,508
Net interest income 18,411,603,004 16,312,334,440
Investment income 29 7,585,930,404 7,142,434,925

Commission, exchange and brokerage 30 11,522,088,039 7,992,853,236
Other operating income 31 313,551,635 175,087,450
Total operating income (a) 37,833,173,082 31,622,710,051
Salaries and allowances 12,044,197,172 9,889,092,833

Rent, taxes, insurance, electricity etc. 32 697,538,365 645,414,492
Legal expenses 62,177,773 62,840,810
Postage, stamps, telecommunication etc. 33 411,043,177 317,984,231
Stationery, printing, advertisement etc. 34 3,223,940,283 2,608,773,879
Chief Executive's salary and fees 35 24,471,250 19,424,250
Directors' fees 36 4,534,312 4,572,209
Auditors' fees 37 8,469,389 7,125,166
Impairment of goodwill 38 54,905,518 -
Depreciation and repair of the bank’s assets 39 5,382,602,590 4,577,170,806
Other expenses 40 4,474,735,716 3,383,027,192
Total operating expenses (b) 26,388,615,545 21,515,425,868
Profit before provisions (c = a-b) 11,444,557,537 10,107,284,183
Share of profit of associates 41 4,860,182 3,742,052

Gain on disposal of associates 2,049,419 17,373,182
Profit/(loss) before provisions (d) 11,451,467,138 10,128,399,417
Provision for loans/investments:

Loans and advances 1,938,266,664 2,971,016,470
Diminution in value of investments 20,539,430 (74,000,000)
Off balance sheet items 204,740,420 251,500,000
Other provisions 23,870,068 70,093,002
Total provisions (e) 42 2,187,416,582 3,218,609,472
Total profit/(loss) before taxes (f= d-e) 9,264,050,556 6,909,789,945
Provision for taxation:

Current tax expense 4,280,691,722 3,737,018,428
Deferred tax expense/(income) (1,138,637,890) (1,479,828,777)
Total provision for taxation (g) 43 3,142,053,832 2,257,189,651
Net profit/(loss) after taxation (f-g) 6,121,996,724 4,652,600,294
Attributable to:
Equity holders of BRAC Bank Limited 6,013,972,880 5,464,672,680
Non controlling interest 24.2.1 108,023,844 (812,072,386)
6,121,996,724 4,652,600,294
Retained earnings brought forward from previous year 26,402,962,532 16,368,391,545

Net profit attributable to the equity holders of the Bank 6,013,972,880 5,464,672,680
Net effect of all items directly recognised in equity/retained earnings 24.1.1 (104,780,581) 7,322,532,868
Profit available for appropriation 32,312,154,831 29,155,597,093
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Consolidated Profit and Loss Account
2022 2021
Particulars Note
Taka Taka
Appropriations:
Statutory reserve 1,080,212,876 662,939,230
General reserve - -
Dividend 2,088,258,589 1,988,817,706
Start-up Fund 57,631,736 100,877,625
3,226,103,201 2,752,634,561
Retained surplus 29,086,051,630 26,402,962,532
Earnings per share (EPS) [previous year's figure restated] 48 4.02 3.65
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Consolidated Statement of Changes in Equity
Amount in Taka
Dividend equalization Revaluation reserve on Foreign currency Non-controlling
Particulars Paid up capital Share premium Statutory reserve Fair value reserve Retained earnings Total
fund Govt. securities translation reserve interest
Balance as at 01 January 2022 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 2,490,292,927 78,920,074 16,632,382 26,402,962,532 19,760,616,148 76,948,090,498
Surplus on account of revaluation of assets - - - - - - - - - -
Surplus/(deficit) on account of revaluation of
- - - - (1,153,047,762) - - - - (1,153,047,762)
investments
Changes in foreign currency translation reserve - - - - - - 311,769,877 - 249,129 312,019,006
Remeasurements of defined benefits liability
- - - - - - - (102,935,836) 2,059,119 (100,876,717)
(assets)
Effect of issuance of preference share by bKash - - - - - - - - - -
Sub total 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 1,337,245,165 78,920,074 328,402,259 26,300,026,696 19,762,924,396 76,006,185,025
Net profit for the year - - - - - - - 6,013,972,880 108,023,844 6,121,996,724
Dividend for the year 2021:
Stock dividend 1,044,129,290 - - - - - - (1,044,129,290) - -
Cash dividend - - - - - - - (1,044,129,299) - (1,044,129,299)
Dividend equalization fund - - - - - - - - - -
Adjustment for subsidiaries holdings change - - - - - - - (1,844,745) 5,034,641 3,189,896
Start-up Fund - - - - - - - (57,631,736) - (57,631,736)
Statutory reserve - - 1,080,212,876 - - - - (1,080,212,876) - -
Balance as at 31 December 2022 14,965,853,280 3,853,767,032 11,148,169,834 355,218,455 1,337,245,165 78,920,074 328,402,259 29,086,051,630 19,875,982,881 81,029,610,610

Amount in Taka
Revaluation reserve on
Dividend equalization Foreign currency Non-controlling
Particulars Paid up capital Share premium Statutory reserve Govt. securities Fair value reserve Retained earnings Total
fund translation reserve interest
Balance as at 01 January 2021 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 4,805,926,053 78,920,074 (15,052,340) 16,368,391,545 5,647,578,133 53,758,551,440
Changes in accounting policy - - - - - - - - - -
Restated balance 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 4,805,926,053 78,920,074 (15,052,340) 16,368,391,545 5,647,578,133 53,758,551,440
Surplus/deficit on account of revaluation of
- - - - - - - - - -
assets
Surplus/deficit on account of revaluation of
- - - - (2,315,633,126) - - - - (2,315,633,126)
investments
Changes in foreign currency translation reserve - - - - - - 31,684,722 - 771,145 32,455,867
Remeasurements of defined benefits liability
- - - - - - - (122,766,336) 39,418,996 (83,347,340)
(assets)
Effect of issuance of preference share by bKash - - - - - - - 7,445,299,204 14,884,920,260 22,330,219,464
Sub total 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 2,490,292,927 78,920,074 16,632,382 23,690,924,413 20,572,688,534 73,722,246,305
Net profit for the year - - - - - - - 5,464,672,680 (812,072,386) 4,652,600,294
Dividend for the year 2020:
Stock dividend 662,939,230 - - - - - - (662,939,230) - -
Cash dividend - - - - - - - (1,325,878,476) - (1,325,878,476)
Dividend equalization fund - - - - - - - - - -
Adjustment for subsidiaries holdings change - - - - - - - - - -
Start-up Fund - - - - - - - (100,877,625) - (100,877,625)
Statutory reserve - - 662,939,230 - - - - (662,939,230) - -
Balance as at 31 December 2021 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 2,490,292,927 78,920,074 16,632,382 26,402,962,532 19,760,616,148 76,948,090,498
15
Consolidated Cash Flow Statement
2022 2021
Particulars Note
Taka Taka
A. Cash flows from operating activities
Interest receipts in cash 37,022,269,415 30,510,937,817
Interest payment (10,349,004,887) (8,765,182,197)
Dividend receipts 294,041,064 225,198,769
Fees and commission receipts in cash 44,272,349,310 36,148,193,743
Recoveries on loans previously written off 809,572,845 707,517,594
Cash payments to employees (11,662,291,298) (9,942,261,926)
Cash payments to suppliers (34,548,789,786) (29,490,800,154)
Income tax paid (10,350,920,142) (7,109,584,330)
Receipts from other operating activities 45 953,966,643 592,067,664
Payment for other operating activities 46 (5,714,933,022) (4,049,473,180)
Operating cash flow before changes in operating assets and
10,726,260,142 8,826,613,800
liabilities (i)
Increase/(decrease) in operating assets and liabilities
Loans and advances (90,450,491,062) (47,587,679,964)
Other assets (484,467,659) (376,833,057)
Borrowings from other banks and financial institutions 33,877,162,172 10,667,650,315
Proceeds from Issuance of affordable housing bond 4,751,000,000 -
Deposits from customers 80,145,069,185 31,712,233,455
Other liabilities (937,467,553) 483,029,607
Cash utilised in operating assets and liabilities (ii) 26,900,805,083 (5,101,599,644)
Net cash flows from operating activities (i+ii) (a) 37,627,065,225 3,725,014,156
B. Cash flows from investing activities
Treasury bills 1,155,677,121 7,996,369,494
Treasury bonds (48,629,090,534) 14,187,750,778
Investment in shares (615,054,764) (863,128,507)
Sale/ (Investment) in bonds 410,000,000 642,282,917
Acquisition of fixed assets (3,541,826,973) (4,696,385,425)
Disposal of fixed assets 17,736,063 601,372,697
Net cash used in investing activities (b) (51,202,559,087) 17,868,261,954
C. Cash flows from financing activities
Proceeds from issue of convertible preference shares - 22,330,724,613
Proceeds from issue of ordinary shares 112,140,000 -
Cash dividend paid (1,042,217,221) (1,383,245,432)
Net cash flows from financing activities ( c) (930,077,221) 20,947,479,181
Net increase/(decrease) in cash (a+b+c) (14,505,571,083) 42,540,755,291
Cash and cash equivalents at the beginning of the year 105,222,018,140 62,639,236,011
Effect of exchange rate changes on cash and cash equivalent 934,394,370 42,026,838
Cash and cash equivalents at the end of the year 44 91,650,841,427 105,222,018,140
Cash and cash equivalents at the end of the year:
Cash in hand (including foreign currency) 11,918,067,777 9,207,161,626
Balance with Bangladesh Bank and its agents bank(s) 19,953,525,473 14,252,262,804
Balance with other banks and financial institutions 52,951,344,277 78,261,312,910
Money at call on short notice 6,826,376,000 3,500,000,000
Prize Bond 1,527,900 1,280,800
91,650,841,427 105,222,018,140
Net operating cash flow per share (NOCFPS) 50 25.14 2.49
16
Consolidated Liquidity Statement
(Asset and Liability Maturity Analysis)
Amount in Taka
0-1 1-3 3 - 12 1-5 Above 5
Particulars Total
Month Months Months Years Years
Assets
Cash in hand and Balance with Bangladesh Bank 17,234,391,450 - - - 14,637,201,800 31,871,593,250
Balance with other banks and financial
institutions (including foreign currencies) 13,157,601,136 24,335,099,107 15,458,644,034 - - 52,951,344,277
Money at call and short notice 6,826,376,000 - - - - 6,826,376,000
Investments 14,188,455,784 1,579,926,666 14,536,811,309 36,654,461,496 49,592,338,603 116,551,993,858
Loans and advances 37,177,621,706 67,860,734,336 163,827,804,476 122,600,813,738 20,617,776,328 412,084,750,584
Fixed assets including premises, furniture and fixtures - - - 12,933,228,662 530,285,686 13,463,514,348
Other assets 8,413,433,120 90,964,829 4,923,386,161 2,242,017,867 5,134,040,700 20,803,842,677
Non - banking assets - - - - 11,341,700 11,341,700
Goodwill - - - 1,372,563,393 1,372,563,393
Total Assets 96,997,879,196 93,866,724,938 198,746,645,980 174,430,521,763 91,895,548,210 655,937,320,087
Liabilities
Borrowings from other banks, financial institutions & agents 6,445,003,282 10,636,443,541 21,827,363,703 - - 38,908,810,526
Borrowings from central bank & government agencies 5,631,493,289 8,114,768,696 12,381,754,222 16,010,838,538 45,647,064 42,184,501,809
Affordable housing bond - - - 4,751,000,000 - 4,751,000,000
Money at call and short notice - - - - - -
Deposits and other accounts 52,368,187,322 79,412,454,837 123,443,464,044 160,143,112,128 31,691,597,998 447,058,816,329
Other liabilities 2,580,830,319 4,601,675,819 11,369,901,768 4,639,745,829 18,812,427,078 42,004,580,813
Total Liabilities 67,025,514,212 102,765,342,893 169,022,483,737 185,544,696,495 50,549,672,140 574,907,709,477
Net Liquidity Gap 29,972,364,984 (8,898,617,955) 29,724,162,243 (11,114,174,732) 41,345,876,070 81,029,610,610
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BRAC Bank Limited
Balance Sheet
2022 2021
Particulars Note
Taka Taka
PROPERTY AND ASSETS
Cash 4 31,776,214,097 22,676,943,467
Cash in hand (Including foreign currency) 11,822,688,624 8,424,680,663
Balance with Bangladesh Bank and its agent bank(s) 19,953,525,473 14,252,262,804
(Including foreign currency)
Balance with other banks and financial institutions 5 16,255,534,724 19,880,951,145

Inside Bangladesh 11,127,982,840 12,261,365,946
Outside Bangladesh 5,127,551,884 7,619,585,199
Money at call on short notice 6 6,826,376,000 3,500,000,000
Investments 7 64,287,682,264 51,590,814,842
Government 56,637,669,673 44,051,798,178
Others 7,650,012,591 7,539,016,664
Loans and advances 8 410,676,406,960 321,212,230,987
Loans, cash credit, overdrafts etc. 221,303,533,974 168,205,415,381
Small and medium enterprises 187,247,111,913 150,749,009,625
Bills purchased & discounted 2,125,761,073 2,257,805,981
Fixed assets including premises, furniture and fixtures 9 7,779,346,693 7,454,867,399
Other assets 10 25,626,075,864 22,763,775,341
Non-banking assets 11 11,341,700 4,541,700
Total property and assets 563,238,978,302 449,084,124,881

Liabilities
Borrowings from other banks, financial institutions & agents 13 38,685,377,271 24,134,564,025
Borrowings from central bank & government agencies 14 42,184,501,809 23,175,903,824
Affordable housing bond 15 4,751,000,000 -
Money at call on short notice - -
Deposits and other accounts 16 384,466,775,242 314,590,914,520
Current accounts & other accounts 123,148,401,399 109,462,945,554
Bills payable 1,739,503,614 2,367,889,416
Savings deposits 71,890,957,598 68,334,576,200
Term deposits 185,088,946,361 133,172,621,149
Other deposits 2,598,966,270 1,252,882,201
Other liabilities 17 34,760,769,207 32,763,271,381

Total Liabilities 504,848,423,529 394,664,653,750
Capital and shareholders' equity
Paid up capital 18.2 14,965,853,280 13,921,723,990
Share premium 18.7 3,853,767,032 3,853,767,032
Statutory reserve 19 11,112,086,248 10,067,956,958
Dividend equalization fund 20 355,218,455 355,218,455
Revaluation reserve on govt. securities 21 1,337,245,165 2,490,292,927
Fair value gain/(loss) on equity investment 22 7,643,913,224 7,384,920,564
Foreign currency translation reserve 23 323,536,914 15,729,653
Surplus in profit and loss account/Retained earnings 24 18,798,934,455 16,329,861,552
Total shareholders' equity 58,390,554,773 54,419,471,131
Total liabilities and shareholders' equity 563,238,978,302 449,084,124,881
18
BRAC Bank Limited
Balance Sheet
2022 2021
Particulars Note
Taka Taka
Acceptances and endorsements 25 83,028,540,659 50,478,536,940
Irrevocable letters of credit 25 27,451,963,219 26,598,203,443
Letter of guarantees 25.2 18,607,062,875 11,793,414,671
Bills for collection 25.3 21,612,714,770 16,438,866,245
150,700,281,523 105,309,021,299
Other Commitments
Swap deals with banks and customers 25.4 13,070,011,143 10,726,189,903
Spot and forward deals with banks and customers 25.4 2,074,308,915 18,161,597,791
15,144,320,058 28,887,787,694
Total off balance sheet items 165,844,601,581 134,196,808,993
Net asset value (NAV) per share 49 39.02 36.36
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BRAC Bank Limited
Profit and Loss Account
2022 2021
Particulars Note
Taka Taka
Interest income 27 28,462,101,118 21,586,220,747
Interest paid on deposits and borrowing etc. 28 13,227,359,203 7,589,298,326
Net interest income 15,234,741,915 13,996,922,421
Investment income 29 5,184,549,425 5,780,677,077

Commission, exchange and brokerage 30 5,884,319,986 3,440,196,921
Other operating income 31 267,298,708 146,093,679
Total operating income (a) 26,570,910,034 23,363,890,098
Salaries and allowances 8,151,587,989 6,625,995,876

Rent, taxes, insurance, electricity etc. 32 507,158,511 473,700,396
Legal expenses 30,384,953 33,352,689
Postage, stamps, telecommunication etc. 33 308,505,338 222,631,352
Stationery, printing, advertisement etc. 34 396,662,334 221,634,405
Chief Executive's salary and fees 35 24,471,250 19,424,250
Directors' fees 36 2,552,000 2,437,600
Auditors' fees 37 1,840,000 1,840,000
Depreciation and repair of the bank’s assets 39 2,304,559,343 2,191,026,040
Other expenses 40 3,713,939,396 2,627,953,670
Total operating expenses (b) 15,441,661,114 12,419,996,278
Profit before provisions (c = a-b) 11,129,248,920 10,943,893,820
Provision for loans/Investments:

Loans and advances 1,945,536,063 2,810,975,910
Diminution in value of investments 20,539,430 (74,000,000)
Off balance sheet items 204,740,420 251,500,000
Other provisions 19,572,571 65,866,351
Total provisions (d) 42 2,190,388,484 3,054,342,261
Total profit/(loss) before taxes (e= c-d) 8,938,860,436 7,889,551,559
Provision for taxation:

Current tax expense 3,765,699,754 3,467,399,481
Deferred tax income (590,012,891) (1,124,778,486)
Total provision for taxation (f) 43 3,175,686,863 2,342,620,995
Net profit after taxation (e-f) 5,763,173,573 5,546,930,564
Retained earnings brought forward from previous year 16,329,861,552 13,680,255,527

Net effect of all items directly recognised in equity-retained earnings (104,081,055) (144,689,978)
Profit available for appropriation 21,988,954,070 19,082,496,113
20
BRAC Bank Limited
2022 2021
Particulars Note
Taka Taka
Appropriations:
Statutory reserve 1,044,129,290 662,939,230
General reserve - -
Dividend 2,088,258,589 1,988,817,706
Start-up Fund 57,631,736 100,877,625
3,190,019,615 2,752,634,561
Retained Surplus 18,798,934,455 16,329,861,552
Earnings per share (EPS) [previous year's figure restated] 48 3.85 3.71
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BRAC Bank Limited
Statement of Changes in Equity
Amount in Taka
Dividend Revaluation reserve Foreign currency Fair value gain/(loss)
Particulars Paid up capital Share premium Statutory reserve Retained earnings Total
equalization fund on Govt. securities translation reserve on equity investment*
Balance as at 01 January 2022 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 2,490,292,927 15,729,653 7,384,920,564 16,329,861,552 54,419,471,131
Surplus/deficit on account of revaluation of assets - - - - - - - - -
Surplus/deficit on account of revaluation of investments - - - - (1,153,047,762) - - - (1,153,047,762)
Changes in translation reserve - - - - - 307,807,261 - - 307,807,261
Changes in OCI reserve for investment in subsidiaries and
associates - - - - - - 258,992,660 - 258,992,660
Actuarial gain/(loss) - - - - - - - (104,081,055) (104,081,055)
Sub total 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 1,337,245,165 323,536,914 7,643,913,224 16,225,780,497 53,729,142,235
Net profit for the year - - - - - - 5,763,173,573 5,763,173,573
Dividends for the year 2021:
Stock dividend 1,044,129,290 - - - - - - (1,044,129,290) -
Cash dividend - - - - - - - (1,044,129,299) (1,044,129,299)
Start-up Fund - - - - - - - (57,631,736) (57,631,736)
Statutory reserve - - 1,044,129,290 - - - - (1,044,129,290) -
Balance as at 31 December 2022 14,965,853,280 3,853,767,032 11,112,086,248 355,218,455 1,337,245,165 323,536,914 7,643,913,224 18,798,934,455 58,390,554,773

Amount in Taka
Dividend Revaluation reserve Foreign currency Fair value gain/(loss)
Particulars Paid up capital Share premium Statutory reserve Retained earnings Total
equalization fund on Govt. securities translation reserve on equity investment
Balance as at 01 January 2021 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 4,805,926,053 (13,641,635) 1,131,197,846 13,680,255,527 46,476,525,766
Changes in accounting policy - - - - - - - -
Restated balance 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 4,805,926,053 (13,641,635) 1,131,197,846 13,680,255,527 46,476,525,766
Surplus/deficit on account of revaluation of assets - - - - - - - - -
Surplus/deficit on account of revaluation of investments - - - - (2,315,633,126) - - - (2,315,633,126)
Changes in translation reserve - - - - - 29,371,288 - - 29,371,288
Changes in OCI reserve for investment in subsidiaries and
associates - - - - - - 6,253,722,718 - 6,253,722,718
Actuarial gain/(loss) - - - - - - - (144,689,978) (144,689,978)
Sub total 13,258,784,760 3,853,767,032 9,405,017,728 355,218,455 2,490,292,927 15,729,653 7,384,920,564 13,535,565,549 50,299,296,668
Net profit for the year - - - - - - 5,546,930,564 5,546,930,564
Dividends for the year 2020:
Stock dividend 662,939,230 - - - - - - (662,939,230) -
Cash dividend - - - - - - - (1,325,878,476) (1,325,878,476)
Start-up Fund - - - - - - - (100,877,625) (100,877,625)
Statutory reserve - - 662,939,230 - - - - (662,939,230) -
Balance as at 31 December 2021 13,921,723,990 3,853,767,032 10,067,956,958 355,218,455 2,490,292,927 15,729,653 7,384,920,564 16,329,861,552 54,419,471,131
* Detail of fair value gain/(loss) on equity investments has been provided at Note-10 and Note-22.
22
BRAC Bank Limited
Cash Flow Statement
2022 2021
Particulars Note
Taka Taka
Interest receipts in cash 31,508,895,124 27,105,416,678
Interest payment (10,508,367,195) (8,504,508,879)
Dividend receipts 232,498,460 174,618,013
Fees and commission receipts in cash 5,884,319,987 3,440,196,921
Recoveries on loans previously written off 809,572,845 707,517,594
Cash payments to employees (8,135,922,799) (6,597,572,669)
Cash payments to suppliers (680,215,058) (480,845,623)
Income tax paid (4,642,899,233) (2,557,956,724)
Receipts from other operating activities 45 1,033,184,962 710,776,014
Payment for other operating activities 46 (5,385,487,007) (3,597,592,564)
Operating cash flow before changes in operating assets and
10,115,580,086 10,400,048,761
liabilities (i)
Increase/decrease in operating assets and liabilities
Other assets (524,779,722) (400,388,462)
Proceeds from Issuance of affordable housing bond 4,751,000,000 -
Other liabilities (996,961,563) 912,507,742
Cash utilised in operating assets and liabilities (ii) 14,883,443,130 (9,234,317,044)
Net cash flows from operating activities (i+ii) (a) 24,999,023,216 1,165,731,717
Treasury bills (422,721,002) 170,075,754
Treasury bonds (13,316,198,255) 15,284,380,330
Sale/ (Investment) in shares (520,995,927) (1,107,182,775)
Sale/ (Investment) in bonds 410,000,000 642,282,917
Acquisition of fixed assets (2,118,856,350) (2,955,859,632)
Disposal of fixed assets 17,653,002 601,254,376
Net cash used in investing activities (b) (15,951,118,532) 12,634,950,970
C. Cash flows from financing activities
Dividend paid (1,042,217,221) (1,383,245,433)
Net cash flows from financing activities ( c) (1,042,217,221) (1,383,245,433)
Net increase/decrease in cash (a+b+c) 8,005,687,463 12,417,437,254
Cash and cash equivalents at the beginning of year 46,059,175,412 33,603,286,202
Effect of exchange rate changes on cash and cash equivalent 794,789,846 38,451,956
Cash and cash equivalents at the end of the year 44 54,859,652,721 46,059,175,412
Cash in hand (including foreign currency) 11,822,688,624 8,424,680,663
Balance with Bangladesh Bank and its agents bank(s) 19,953,525,473 14,252,262,804
Balance with other banks and financial institutions 16,255,534,724 19,880,951,145
Money at call on short notice 6,826,376,000 3,500,000,000
Prize Bond 1,527,900 1,280,800
54,859,652,721 46,059,175,412
Net operating cash flow per share (NOCFPS) 50 16.70 0.78
The reconciliation of net profit with cash flows from operating activities (standalone basis) has been presented at note - 47.
23
BRAC Bank Limited
Liquidity Statement
(Asset and Liability Maturity Analysis)
Amount in Taka
0-1 1-3 3 - 12 1-5 Above 5
Particulars Total
Month Months Months Years Years
Assets
Cash in hand and balance with Bangladesh Bank 17,139,012,298 - - - 14,637,201,799 31,776,214,097
Balance with other banks and financial institutions (including
foreign currencies) 6,005,534,724 10,250,000,000 - - - 16,255,534,724
Money at call and short notice 6,826,376,000 - - - - 6,826,376,000
Investments 12,702,469,598 1,579,926,666 13,033,778,937 28,024,952,278 8,946,554,785 64,287,682,264
Loans and advances 38,166,517,554 67,860,734,336 161,443,948,391 122,587,430,351 20,617,776,328 410,676,406,960
Fixed assets including premises, furniture and fixtures - - - 7,249,061,007 530,285,686 7,779,346,693
Other assets 6,506,232,478 37,437,694 23,841,248 560,486,246 18,498,078,198 25,626,075,864
Non-banking assets - - - - 11,341,700 11,341,700
Total Assets 87,346,142,652 79,728,098,696 174,501,568,576 158,421,929,882 63,241,238,496 563,238,978,302
Liabilities
Borrowings from other banks, financial institutions & agents 7,446,298,531 10,536,294,000 20,702,784,740 - - 38,685,377,271
Borrowings from central bank & government agencies 5,631,493,289 8,114,768,696 12,381,754,222 16,010,838,538 45,647,064 42,184,501,809
Affordable housing bond - - - 4,751,000,000 - 4,751,000,000
Money at call and short notice - - - - - -
Deposits and other accounts 46,706,467,499 72,043,815,311 121,288,961,984 141,455,809,394 2,971,721,054 384,466,775,242
Other liabilities 2,034,289,634 3,584,707,271 4,836,188,826 4,144,359,024 20,161,224,452 34,760,769,207
Total Liabilities 61,818,548,953 94,279,585,278 159,209,689,772 166,362,006,956 23,178,592,570 504,848,423,529
Net Liquidity Gap 25,527,593,699 (14,551,486,582) 15,291,878,804 (7,940,077,074) 40,062,645,926 58,390,554,773
24
BRAC Bank Limited
Notes to the financial statements as at and for the year ended 31 December 2022
1 THE BANK AND ITS ACTIVITIES

1.1 BRAC Bank Limited
BRAC Bank Limited (the "Bank" or "BRAC Bank") is a scheduled commercial bank established under the Bank Company Act, 1991, and
incorporated as a public company, limited by shares, on 20 May 1999 under the Companies Act, 1994, in Bangladesh, vide RJSC registration no.
C-37782(2082)/99. The primary objective of the bank is to conduct all kinds of banking businesses. On completion of all legal formalities, the
bank commenced its operations on 4th July 2001. At present, the bank has 187 banking branches (2021: 187 branches), 11 sub-branches,
198 Area offices (2021: 198 Area offices), 456 SME unit offices (2021: 456 SME unit offices), 1,000 agent banking outlets (2021: 785 agent
outlets), 324 ATMs (2021: 373 ATMs) and 39 RCDMs and spread across the country. The registered address of the bank is: Anik Tower, 220/B
Tejgaon Gulshan Link Road, Tejgaon, Dhaka-1208. BRAC Bank was listed on the Dhaka Stock Exchange and Chittagong Stock Exchange as a
publicly traded company on 28 January 2007 and on 24 January 2007 respectively. The Bank has four subsidiaries and one associate
companies in related operations. A brief description of the subsidiaries and associates of the Bank has been provided in Note 1.6.
1.2 Principal activities and nature of operations
The principal activities of the Bank are banking and related activities including accepting customer deposits, lending to retail, small and medium
enterprise (SME) and corporate customers, trade financing, lease financing, project financing, issuing letter of credit (LCs), inter bank borrowing
and lending, dealing in government securities, equity shares etc. There have been no significant changes in the nature of operations of the Bank
during the financial year under review.
As a fully operational commercial bank, BRAC Bank Limited focuses on pursuing unexplored market niches in the SME business, which hitherto
has remained largely untapped within the country. Significant percentage of BRAC Bank's clients had no prior experience with formal banking.
With the view to reaching clients, the Bank has established a wide network of branches, zonal offices, SME unit offices and agent banking outlets
offering services in the heart of rural and urban communities.
As a founder member of GABV and being the trailblazer of values-based banking in Bangladesh, Bank always strives to contribute towards
achieving the Sustainable Development Goals (SDGs), where financing for SMEs to generate employment in an environmentally-friendly manner
remains as our top priority. The Bank also serving as intermediary for Triple Bottom Line (TBL) by supporting individual or enterprises delivering
impact in at least one of the following categories: social empowerment (people), environmental regeneration (planet), and/or economic resiliency
(prosperity).
1.3 Off-shore banking unit (OBU)
The Bank commenced its off-shore banking operation on obtaining permission from Bangladesh Bank in 2010. The Off-shore Banking Unit (OBU)
is governed by the rules and guidelines of Bangladesh Bank. The consolidated and separate financial statements of the bank included the
operations of OBU. In addition, a separate financial statements of OBU has been presented in Annexure-H. In addition, the principal activities of
OBU are to provide all kinds of commercial banking services to its customers in Bangladesh in foreign currency.
1.4 Custodian Service
The Bank obtained permission to work as a security custodian from Bangladesh Securities and Exchange Commission vide its certificate no. SC-
10/2009 dated 12 November 2009 under the Securities and Exchange Commission (Securities Custodian Service) Rules 2003. Financial
performance of Security Custodial Services have been separately reported in Annexure-I along with Bank’s audited financial statements in
compliance with the requirement u/s 10(2) of Security Custodial Services Rules 2003. The due certificate from external auditors has been
obtained on internal control and financial statements of security custodial operations of the Bank and annexed with the financial statements.
1.5 Agent banking
BRAC Bank obtained permission from Bangladesh Bank on 11 March 2018, vide reference no. BRPD(P-3)745/(50)2018-1806, to commence
agent banking outlets and subsequently started commercial operations on 11 September 2018. Till 31 December 2022, the bank has already
opened 1,000 agent banking outlets in 64 districts across the country. Services that are currently being dispensed include account opening
(current, savings & term deposit), cash deposit and withdrawal, instant fund transfer within BRAC Bank and outside BRAC Bank accounts
through BEFTN, SME loan disbursement & repayment collection, foreign remittance disbursement, corporate bill/distributor fee collection, retail
loan and credit card lead generation, credit card bill collection, insurance premium collection, utility bill collection, cheque book & debit card
request process & delivery, internet and SMS banking and balance inquiry etc.
1.6 Subsidiaries and associates of BRAC Bank Limited
Subsidiaries are entities controlled by the Group. The Group controls an entity if it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The Group reassesses whether it has
control if there are changes to one or more of the elements of control. This includes circumstances in which protective rights held (e.g. those
resulting from a lending relationship) become substantive and lead to the Group having power over an investee. Financial statements of
subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control
ceases.
An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture of the investor
(IAS-28: Investments in Associates and joint venture ). Significant influence is the power to participate in the financial and operating policy
decisions of the investee, but there is no control over those policies. Investment in associates is accounted for in the consolidated financial
statements under the ‘equity method’. Under this method, the investment is initially recorded at cost and the carrying amount is increased or
decreased to recognise the investor's share of profits or losses of the investee after the date of acquisition. The investor's share of the investee's
profits or losses is recognised in the investor's profit and loss account. Distributions received from an investee reduce the carrying amount of the
investment.
25
BRAC Bank Limited
If the holding in subsidiary disposed-off in such a way that the status of the holding now comes to ‘Associate’ then the fair value of the holding
retained in the said entity at the date of such disposal has been considered as opening balance of investment in associate in consolidated
financial statements and related gains and losses have been recognised directly in consolidated equity. Any share of profits and losses after
such change/disposal have been recognised in consolidated profit and loss as per equity method.
Summary of shareholding in subsidiaries and associates
BRAC Bank's shareholding position in its four subsidiaries and one associate is summarized below:
Name of Face No. of ordinary shares held by BBL's percentage of

Total no. of ordinary shares
subsidiaries and value per Nature of business BBL shareholding
associates share
2022 2021 2022 2021 2022 2021
BRAC EPL
BDT 10 Merchant banking 258,500,000 258,500,000 258,358,734 258,358,734 99.95% 99.95%
Investments Ltd.
BRAC EPL Stock
BDT 100 Stock brokerage 8,411,446 8,411,446 7,570,249 7,570,249 90.00% 90.00%
Brokerage Ltd.
Mobile financial
bKash Ltd. BDT 100 381,949 381,949 194,800 194,800 51.00% 51.00%
services (MFS)
BRAC SAAJAN Remittance &
GBP 1 1,333,333 333,333 1,250,000 250,000 93.75% 75.00%
Exchange Ltd. exchange services
BRAC IT Services BDT
IT services 233,729 233,729 23,372 30,190 9.9996% 12.92%
Ltd. 1,000
1.6.1 BRAC EPL Investments Limited (subsidiary)

BRAC Bank acquired 51% shares of Equity Partners Limited on 31 July 2009. This entity was incorporated in Bangladesh on 19 April 2000 as a
private limited company, under the Companies Act, 1994, and was subsequently renamed as "BRAC EPL Investments Limited". BRAC Bank
acquired an additional 25% shares in the entity in 2011 and an additional 18.57% in 2016. During 2017, the bank acquired a further 5.275% in
the entity. During 2019, the bank acquired another 0.10%, thus taking the total shareholding to 99.945% at the end of the year 2019.
BRAC EPL Investments was established to cater to the needs of the fast growing capital markets of Bangladesh. It works as a merchant bank
with a full-fledged merchant banking license from Bangladesh Securities and Exchange Commission (BSEC). The company's service portfolio
comprises lead managing initial public offerings, domestic and international placements, portfolio management and project development and
consultancy.
1.6.2 BRAC EPL Stock Brokerage Limited (subsidiary)
BRAC Bank Limited acquired 51% shares of Equity Partners Securities Limited on 31 July 2009. Equity Partners Securities Limited was
incorporated in Bangladesh on 16 May 2000 as a private limited company under the Companies Act, 1994. Subsequently, the management
decided to rename Equity Partners Securities Limited as BRAC EPL Stock Brokerage Limited. In the year 2011, the bank acquired an additional
39% shares of EPL Stock Brokerage Limited. As a result, the bank's controlling interest has risen to 90% of EPL Stock Brokerage Limited.
BRAC EPL Stock Brokerage Limited was established to cater to the needs of the brokerage business in Bangladesh. It has corporate membership
of both Dhaka Stock Exchange and Chittagong Stock Exchange.
1.6.3 bKash Limited (subsidiary)
BRAC Bank Limited formed bKash Limited, a private company limited by shares incorporated on 1 March 2010 under the Companies Act, 1994.
bKash Limited was established to introduce mobile financial services in Bangladesh. The bank has obtained a license from Bangladesh Bank for
bKash Limited to render mobile financial services (MFS). BRAC Bank currently holds 51% equity shares in the company.
With the consent of all existing shareholders, in 2014 Bill & Melinda Gates Foundation (B&M), in 2018 Alipay Singapore E-Commerce Private
Limited ("Alipay") and in 2021 SoftBank further invested in bKash Limited in the form of convertible preference shares. As on 31 December
2021, out of the total 163,104 convertible preference shares, B&M holds 22,525 shares, Alipay holds 55,433 shares and SoftBank holds
85,146 shares. Preference shareholders do not have any voting rights but has same rights as equity shareholders with respect to economic
interest in the company. These preference shares are convertible at a 1:1 basis to ordinary shares subject to consent as per shareholders'
agreement. Consolidated financial statements have been prepared using 35.74% instead of 51% considering the potential dilution, or otherwise
according to economic interest on bKash.
1.6.4 BRAC SAAJAN Exchange Limited (subsidiary)
At the inception, BRAC Bank Limited acquired 75%+1 shares of "SAAJAN Worldwide Money Transfer Limited" (SWMTL) in the UK. Bangladesh
Bank provided necessary approvals of GBP 500,000 to acquire SWMTL and setting up two new branches in Luton and Bradford, UK. As per
permission of Bangladesh Bank, SWMTL has been renamed as "BRAC SAAJAN Exchange Ltd” (BSEL). BRAC SAAJAN Exchange Limited was
established to offer remittance and exchange services in the UK.
Notable that the operation of BRAC SAAJAN Exchange Limited was suspended in 2021 on regulatory ground by the local regulator in UK.
Management lodged an appeal against the suspension before the Court in UK. After long hearing, the honorable Court released a verdict in 2022
in favour of BRAC Saajan and nodded the company to resume its operations. Accordingly, the company has resumed its operations in December
2022.
26
BRAC Bank Limited
Considering the minimum capital requirement as per Financial Conduct Authority (FCA), UK and to resume its full-fledged operations, the
company (BRAC Saajan) converted the outstanding OD Loan facilities of BRAC Bank as additional share capital of GBP 1,000,000 (equivalent to
BDT 112,140,000) with due approval from the regulators. Currently, BRAC Bank Limited holds 93.75% shares (1,250,000 no. of shares out of
the total 1,333,333 shares) of BRAC SAAJAN Exchange Ltd (BSEL).
1.6.5 BRAC IT Services Limited (biTS) (associate)
BRAC IT Services Ltd. (biTS) was initially founded as Documenta™ Ltd, a digital archiving firm, in 1999. BRAC IT Services Ltd. was then formed in
April 2013 through the merger of Documenta™ Ltd and the IT Division of BRAC Bank. BRAC Bank acquired 51% shares of BRAC IT Services
Limited, a private company limited by shares under the Companies Act, 1994, incorporated on 9 April 2013. It currently operates as an IT
services company. In the year 2017, BRAC Bank reduced its holding in BRAC IT Services Limited from 51% to 48.67% by selling 1,034 shares to
BRAC. However, due to additional investment by BRAC, the holding percentage of BRAC Bank further reduced to 12.92% at the end of the year
2020.
In 2022, BRAC Bank further disposed off 6,818 no. of shares (2.92% shareholding) to BRAC upon approval from Bangladesh Bank and the
bank's shareholding in biTS reduced to 9.9996%. Considering the significant management involvement, the company is still considered as an
associate of the Bank as per international accounting standards (IASs)
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2.1 Preparation of consolidated and separate financial statements
Preparation of separate financial statements of the bank for the year ended 31 December 2022 comprise the operation of the Domestic Banking
Unit (DBU) (main operations), as well as operations of the Off-shore Banking Unit (OBU), together referred to as ‘the Bank’.
Consolidated financial statements include separate financial statements of the BRAC Bank Limited and financial statements of all subsidiaries',
as those of a single economic entity and together referred to as ‘the Group’. There were no significant changes in the operations of the
bank/group entities.
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) 10:
Consolidated Financial Statements. The consolidated financial statements are prepared to a common reporting year ended 31 December 2022.
Intra-company transactions, balances and intra-group gains on transactions between group companies are eliminated on consolidation.
2.2 Statement of compliance with applicable laws, regulations and standards

The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council (FRC) was formed in 2017 and has
adopted International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) as the applicable Financial Reporting
Standards for public interest entities such as banks with effect from 2 November 2020.
The consolidated and separate financial statements of the Group and the bank have been prepared in accordance with the IFRS adopted by FRC
and in addition to this, the bank also complied with the requirements of the following laws and regulations from various government bodies:
i) The Bank Company Act, 1991, and amendment thereon;

ii) The Companies Act, 1994;
iii) Circulars, Rules and Regulations issued by Bangladesh Bank (BB) time to time;
iv) Bangladesh Securities and Exchange Rules, 2020; Bangladesh Securities and Exchange Ordinance, 1969; Bangladesh Securities and
Exchange Act, 1993 and Bangladesh Securities and Exchange Commission (Public Issue) Rules 2015 and amendments thereon;
v) The Income Tax Ordinance, 1984, and amendments thereon;
vi) The Value Added Tax Act, 2012, The Value Added Tax Rules, 2016 and amendments thereon;
vii) Dhaka Stock Exchange Limited (DSE), Chittagong Stock Exchange Limited (CSE) and Central Depository Bangladesh Limited (CDBL) rules
and regulations; and
viii) Financial Reporting Act, 2015.
The Central Bank of Bangladesh (’Bangladesh Bank’), as primary regulator of the banking industry, has issued a number of circulars/directives
which are not consistent with the requirements specified in IASs/IFRSs. In case any requirement of the Bank Company Act, 1991, and provisions
and circulars issued by Bangladesh Bank (BB) differ with those of IFRSs, the requirements of the Bank Company Act, 1991, and provisions and
circulars issued by BB shall prevail.
Bank has departed from certain contradictory requirements of IFRSs in order to comply with the rules and regulations of Bangladesh Bank which
are disclosed below:
i) Investment in equity instruments except investment in subsidiaries and associates
Treatment as per IFRS Treatment adopted as per BB circulars and guidelines
As per requirements of IFRS 9: Classification and measurement of As per Banking Regulation and Policy Department (BRPD) circular
investment in equity instruments depend on how these are managed no. 14, dated 25 June 2003, investments in quoted shares and
(the entity’s business model) and their contractual cash flow unquoted shares are revalued at the year-end at market price and
characteristics. Based on these factors, it would generally fall either as per the book value of the last audited balance sheet,
under ‘at fair value through profit and loss account’ or under ‘at fair respectively. Provisions should be made for any loss arising from
value through other comprehensive income’ where any change in the diminution in value of investments; otherwise investments are
fair value (measured in accordance with IFRS 13) at the year-end is recognised at cost.
taken to the profit and loss account or other comprehensive income,
respectively.
27
BRAC Bank Limited
ii) Subsequent measurement of Government securities

Government securities refer primarily to various debt instruments As per DOS Circular no. 05, dated 26 May 2008, and subsequent
which include both bonds and bills. As per requirements of IFRS 9: clarification in DOS Circular no. 05, dated 28 January 2009,
Financial Instruments, these investments can be categorised as Government securities/bills are classified into Held for Trading
"Amortised Cost (AC)", or "Fair Value Through Profit or Loss (FVTPL)", or (HFT) and Held to Maturity (HTM). HFT securities are revalued on
"Fair Value through Other Comprehensive Income (FVOCI)". the basis of mark-to-market and at year-end, any gains on
Investments designated as Amortised Cost are measured at amortised revaluation of securities which have not matured as at the balance
cost method, and interest income is recognised through profit and loss sheet date are recognised in other reserves as a part of equity. Any
account. Any changes in fair value of investments designated as FVTPL losses on revaluation of securities which have not matured as at
is recognised in the profit and loss account. Any changes in fair value the balance sheet date are charged in the profit and loss account.
of investments designated as FVOCI is recognised in other reserves, as Interest on HFT securities, including amortisation of discount, are
a part of equity. recognised in the profit and loss account. HTM securities which
have not matured as at the balance sheet date are amortised at
year-end, and gains or losses on amortization are recognised in
other reserves as part of equity.
iii) Provision on loans and advances
As per IFRS 9: Financial Instruments, an entity shall recognise an As per BRPD circular no. 14 dated 23 September 2012, BRPD
impairment allowance on loans and advances based on expected circular no. 19 dated 27 December 2012, BRPD circular no. 05
credit losses. At each reporting date, an entity shall measure dated 29 May 2013, BRPD circular no. 16 dated 18 November
impairment allowance for loans and advances at an amount equal to 2014, BRPD circular No. 12 dated 20 August 2017, BRPD circular
the lifetime expected credit losses, if the credit risk on these loans and No. 15 dated 27 September 2017, BRPD circular no. 1 dated 20
advances has increased significantly since initial recognition, whether February 2018, BRPD Circular no. 07 dated 21 June 2018, BRPD
assessed on an individual or collective basis, considering all Circular no 13 dated 18 October 2018, BRPD circular no. 3 dated
reasonable information (including that which is forward-looking). For 21 April 2019, BRPD circular no. 16 Dated 21 July 2020, BRPD
those loans and advances for which credit risk has not increased circular no. 52 Dated 20 October 2020, BRPD circular no. 19 dated
significantly since initial recognition, at each reporting date, an entity 26 August 2021, BRPD circular no. 51 dated 29 December 2021,
shall measure the impairment allowance at an amount equal to 12- BRPD circular no. 52 dated 29 December 2021, BRPD circular no.
month expected credit losses that may result from default events on 03 dated 20 January 2022, BRPD circular no. 09 dated 7 April
such loans and advances that are possible within 12 months after the 2022, BRPD circular no. 07 dated 27 April 2022, BRPD circular no.
reporting date. 14 dated 22 June 2022, BRPD circular no. 51 dated 18 December
2022, the general provision at 0.25% to 2% under different
categories of unclassified loans (good/standard and SMA loans)
has to be maintained regardless of objective evidence of
impairment. Also, provision for different categories of classified
loans (sub-standard, doubtful and bad and loss loans) has to be
provided at 20%, 50% and 100%, respectively, for loans and
advances depending on time past due.
Furthermore, as per BRPD circular no. 14 dated 23 September
2012 and BRPD circular no. 07 dated 21 June 2018, a general
provision at 1% is required to be provided for all off-balance sheet
exposures except on 'bills for collection' and 'guarantees' where the
counter guarantees have been issued by multilateral development
bank (MDB)/international bank having BB rating grade '1'
equivalent outlined in the Guidelines on Risk Based Capital
Adequacy (Revised Regulatory Capital Framework for banks, in line
with Basel-III).
As per BRPD circular no. 16 dated 21 July 2020, provision @ 5%,
20% on SMEF financing on SS and DF except medium enterprise
has to be maintained. Such provision policies are not specifically in
line with those prescribed by IFRS 9. Such provision policies are not
specifically in line with those prescribed by IFRS 9.
iv) Other comprehensive income
As per IAS 1 Presentation of Financial Statements, other Bangladesh Bank has issued templates for financial statements
comprehensive income is a component of financial statements or the which is followed by all banks. The templates of financial
elements of other comprehensive income are to be included in single statements issued by Bangladesh Bank neither include Other
comprehensive income statements. Comprehensive Income nor the elements of Other Comprehensive
Income allowed to be included in a single Other Comprehensive
Income (OCI) statement. As such, the bank does not prepare Other
Comprehensive Income statement. However, elements of OCI, if
any, are shown in the Statement of Changes in Equity.
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BRAC Bank Limited
v) Financial instruments – presentation and disclosure

some disclosure and presentation requirements of IFRS 7 Financial In several cases, Bangladesh Bank guideline categorize, recognise,
Instruments: Disclosures and IAS 32 Financial Instruments: measure and present financial instruments differently from those
Presentation cannot be made in the financial statements. prescribed in IFRS 9: Financial Instruments.
vi) Repo and reverse repo transactions
As per IFRS 9, when an entity sells a financial asset and As per DOS Circular letter no. 6, dated 15 July 2010, and
simultaneously enters into an agreement to repurchase the asset (or a subsequent clarification in DOS Circular no. 03, dated 30 January
similar asset) at a fixed price on a future date (repo), the arrangement 2012 and DOS circular no. 2, dated 23 January 2013, when a bank
is treated as a loan, and the underlying asset continues to be sells a financial asset and simultaneously enters into an agreement
recognised at amortised cost in the entity’s financial statements. The to repurchase the asset (or a similar asset) at a fixed price on a
difference between selling price and repurchase price will be treated future date (repo or stock lending), the arrangement is accounted
as interest expense. The same rule applies to the opposite side of the for as a normal sales transaction, and the financial assets are de-
transaction (reverse repo). recognised in the seller’s book and recognised in the buyer’s book.
However, as per DMD circular letter no. 7, dated 29 July 2012, non-
primary dealer banks are eligible to participate in the Assured
Liquidity Support (ALS) programme, whereby such banks may enter
collateralised repo arrangements with Bangladesh Bank. Here, the
selling bank accounts for the arrangement as a loan, thereby
continuing to recognise the asset.
vii) Financial guarantees

As per IFRS 9: Financial Instruments, financial guarantees are As per BRPD circular no. 14, dated 25 June 2003, financial
contracts that require an entity to make specified payments to guarantees, such as Letter of Credit and Letter of Guarantee should
reimburse the holder for a loss it incurs if a specified debtor fails to be treated as off balance sheet items. No liability is recognised for
make payment when due, in accordance with the term of debt the guarantee, except the cash margin.
instruments. Financial guarantee liabilities are recognised initially at
their fair value, and the initial fair value is amortised over the life of
the financial guarantee. The financial guarantee liability is
subsequently carried at the higher of this amortised amount, and the
loss allowance determined as expected credit loss under IFRS 9.
Financial guarantees are prescribed to be included within other
liabilities.
viii) Cash and cash equivalents
Cash and cash equivalent items should be reported as cash item as Some cash and cash equivalent items, such as money at call and
per IAS 7: Statement of Cash Flows. on short notice, treasury bills, Bangladesh Bank bills and prize
bonds are not shown as cash and cash equivalents. Money at call
and on short notice is shown separately in the balance sheet.
Treasury bills, Bangladesh Bank bills and prize bonds are shown
under investment in the balance sheet. However, in the cash flow
statement, money at call and short notice and prize bonds are
shown as cash and cash equivalents beside cash-in-hand, balance
with Bangladesh Bank and other banks.
ix) Non-banking assets
There is no particular/specific guideline about non-banking assets in As per BRPD circular no. 22, dated 20 September 2021, there is a
IFRS. separate balance sheet item titled as non-banking asset that exists
in the standard format.
x) Cash flow statement
As per IAS 7: Statement of Cash Flows, cash flow statement can be As per BRPD circular no. 14, dated 25 June 2003, the cash flow
prepared either in direct method or indirect method. The presentation statement is a mix of both the direct and indirect methods.
is selected to present these cash flows in a manner that is most
appropriate for the business or industry. The method selected is
applied consistently.
xi) Balance with Bangladesh Bank
Balance with Bangladesh Bank should be treated as other asset, as it Balance with Bangladesh Bank is treated as cash and cash
is not available for use in day to day operations, as per IAS 7: equivalents.
Statement of Cash Flows.
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BRAC Bank Limited
xii) Presentation of intangible asset

Intangible assets must be identified and recognised, and the Intangible assets are shown in fixed assets, including premises and
disclosure must be given as per IAS 38: Intangible Assets. furniture and fixtures, as there is no specific regulation for
intangible assets in BRPD circular no. 14, dated 25 June 2003.
xiii) Off balance sheet items
As per IFRS, there is no requirement for disclosure of off balance sheet As per BRPD circular no. 14, dated 25 June 2003, off balance
items on the face of the balance sheet. sheet items, e.g. Letter of Credit, Letter of Guarantee and
Acceptance must be disclosed separately on the face of the
balance sheet.
xiv) Disclosure of appropriation of profit
There is no requirement to show appropriation of profit on the face of As per BRPD circular no. 14, dated 25 June 2003, appropriation of
statement of comprehensive income. profit should be disclosed on the face of profit and loss account.
xv) Loans and advances/investments net of provision
As per IFRS 9, loans and advances/investments should be presented As per BRPD circular no. 14, dated 25 June 2003, provision on
net of provision. loans and advances/investments are presented separately as
liability and cannot be netted-off against loans and advances.
xvi) Recognition of interest in suspense
Loans and advances to customers are generally classified at As per BRPD circular no. 14, dated 23 September 2012, once a
amortised cost as per IFRS 9, and interest income is recognised in the loan is classified as Sub-standard, Doubtful BL (special reason),
profit and loss account by using the effective interest rate method to interest accrued on such loans are not allowed to be recognised as
the gross carrying amount over the term of the loan. Once a loan income, rather the corresponding amount needs to be credited to
subsequently becomes credit-impaired, the entity shall apply the an interest in suspense account which is presented as other
effective interest rate to the amortised cost of these loans and liability in the balance sheet.
advances.
xvii) Provision on undrawn loan commitments
As per IFRS 9, the bank shall recognise credit losses on undrawn loan As per BRPD Circular no. 07, dated 21 June 2018, and BRPD
commitments, such as Letter of Credit (L/C), Letter of Guarantee Circular no. 14, dated 23 September 2012, the bank is required to
(L/G), etc., as the present value of the difference between the maintain a provision at 1% rate against off balance sheet
contractual cash flow that are due by the customer if the commitment exposures (which includes all types of undrawn loan commitments).
is drawn down and the cash flows that the bank expects to receive.
xviii) Name of the financial statements

As per IAS 1, complete set of financial statements consists statement The forms of financial statements and directives for preparation
of financial position, statement of profit or loss and other thereof of the bank companies in Bangladesh are guided by BRPD
comprehensive income, statement of changes in equity, statement of Circular no. 14, dated 25 June 2003 and subsequent amendments
cash flows and notes, comprising significant accounting policies and thereof from time to time. BRPD circular no. 14 states the
other explanatory information. statement of financial position as balance sheet and statement of
profit or loss and other comprehensive income as profit and loss
account.
2.2.2 Summary statement of compliance with IFRSs
Ref. Name of the standards Status
IFRS-1 First-Time Adoption of International Financial Reporting Standards Not applicable
IFRS-2 Share-based Payment Not applicable
IFRS-3 Business Combinations Complied
IFRS-4 Insurance Contracts Not applicable
IFRS-5 Non-current assets Held for Sale and Discounted Operations Not applicable
IFRS-6 Exploration for and Evaluation of Mineral Resources Not applicable
IFRS-7 Financial Instruments: Disclosures Complied *
IFRS-8 Operating Segments Complied *
IFRS-9 Financial Instruments Complied *
IFRS-10 Consolidated Financial Statements Complied
IFRS-11 Joint Arrangements Not applicable
IFRS-12 Disclosure of Interests in Other Entities Complied
IFRS-13 Fair Value Measurement Complied
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BRAC Bank Limited
IFRS-14 Regulatory Deferral Accounts Not applicable

IFRS-15 Revenue from Contracts with Customers Complied
IFRS-16 Leases Complied
IAS-1 Presentation of Financial Statements Complied *
IAS-2 Inventories Not applicable
IAS-7 Statement of Cash Flows Complied *
IAS-8 Accounting Policies, Changes in Accounting Estimates and Errors Complied
IAS-10 Events after the Reporting Period Complied
IAS-12 Income taxes Complied
IAS-16 Property, Plant and Equipment Complied
IAS-19 Employee Benefits Complied
IAS-20 Accounting for Government Grants and Disclosure of Government Assistance Complied
IAS-21 The Effect of Changes in Foreign Exchanges Rates. Complied
IAS-23 Borrowing Cost Complied
IAS-24 Related Party Disclosures Complied
IAS-26 Accounting and Reporting by Retirement Benefit Plans Not applicable
IAS-27 Separate Financial Statements Complied
IAS-28 Investment in Associates and Joint Venture Complied
IAS-29 Financial Reporting in Hyperinflationary Economies Not applicable
IAS-32 Financial Instruments: Presentation Complied *
IAS-33 Earnings Per Share Complied
IAS-34 Interim Financial Reporting Complied
IAS-36 Impairment of Assets Complied
IAS-37 Provisions, Contingent Liabilities and Contingent Assets Complied
IAS-38 Intangible Assets Complied *
IAS-40 Investment Property Not applicable
IAS-41 Agriculture Not applicable
* Complied to the extent possible subject to compliance to Bangladesh Bank guidelines in this respect.
** Complied in the preparation of interim financial reports of the Bank.
2.2.3 Standards issued but not yet effective
A number of new standards and amendments to standards are issued but not yet effective for annual periods beginning after 01 January 2022
and earlier application is permitted. However, the Bank has not adopted early the following new or amended standards in preparing these
financial statements.
A) Deferred tax related to assets and liabilities arising from a single transaction (Amendments to IAS 12)
B) Other standards: The following new and amended standards are not expected to have a significant impact on the bank's standalone and
consolidated financial statements:
- Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
- IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts
- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
- Definition of Accounting Estimates (Amendments to IAS 8)
- Lease liability in sale and leaseback (Amendments to IFRS 16)
2.3 Going concern
The accompanying financial statements have been prepared on a going concern assumption that the Bank will continue in operation over the
foreseeable future. The Bank has neither any intention nor any legal or regulatory compulsion to liquidate or curtail materially the scale of any of
its operations. Key financial parameters (including liquidity, profitability, asset quality, provision sufficiency and capital adequacy) of the bank
continued to demonstrate a healthy trend for a couple of years. The rating outlook of the bank, as reported by all the rating agencies is ‘Stable’.
The management do not see any issue with respect to going concern due to recent pandemic COVID-19. Besides, the management is not aware
of any other material uncertainties that may cast significant doubt upon the bank's ability to continue as a going concern.
2.4 Materiality and aggregation
Each material item considered by the management as significant has been displayed separately in the financial statements. No amount has
been set off, unless the Bank has a legal right to set off the amounts and intends to settle on net basis. Income and expenses are presented on a
net basis only when permitted by the relevant accounting standards.
2.5 Comparative information
Accounting policies have been consistently applied by the Bank and are consistent with those used in the previous year. Comparative
information is rearranged wherever necessary to conform with the current presentation.
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BRAC Bank Limited
2.6 Functional and presentation currency

The financial statements are presented in Bangladeshi Taka (BDT), which is the bank's functional currency. The functional currency of the Bank's
Off-shore Banking Unit (OBU) and one of the Bank's subsidiaries, namely BRAC SAAJAN Exchange Limited, is in United States Dollar (USD) and
Great Britain Pound (GBP), respectively. Financial statements of the above-mentioned unit and subsidiary have been translated into the
presentation currency, i.e. Bangladeshi Taka (BDT), following the guidelines of IAS 21: The Effect of Changes in Foreign Exchange Rates. The
functional and presentation currency of other subsidiaries and associates is in Bangladeshi Taka (BDT). Except as indicated, figures have been
rounded-off to the nearest Taka.
2.7 Reporting period
These financial statements cover one calendar year - from 01 January to 31 December 2022.
2.8 Basis of measurement of elements of financial statements
The financial statements of the Bank have been prepared on historical cost basis except for the following:
- Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using marked to market with gains, if any,
credited to revaluation reserve.
- Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using amortization concept.
2.9 Use of estimates and judgments
The preparation of financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ
from these estimates. It also requires disclosures of contingent assets and liabilities at the date of the financial statements. Provisions and
accrued expenses are recognized in the financial statement in line with the IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable
under the circumstances, the result of which form the basis of making the judgments about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates. However, the estimates and underlying assumptions are
reviewed on an ongoing basis and the revision is recognized in the year in which the estimates are revised and in any future periods affected.
Significant areas where management requiring the use of estimate and judgment:
a) Provision for loans and advances, investments and leases for future impairment
b) Useful life of fixed assets and Right of use of assets (RoU) as per IFRS 16
c) Remeasurement gain/(loss) of defined benefit obligation and plan assets
d) Deferred Tax assets/liabilities
e) Provision for gratuity fund
f) Right of use of assets (RoU) as per IFRS 16
g) Lease liabilities
h) Impairment testing of goodwill
i) Provision for taxation
j) Fair value determination of unquoted investments/shares
2.10 Foreign currency transactions
Mark-to-market valuation of foreign currency transaction
The treasury back-office values all outstanding positions (Spot and Forward including on and off balance sheet items) at the current market rate
to determine the current market value of these positions. This exercise also provides the profitability of the outstanding contracts. The treasury
back office gathers the market rates from an independent source i.e. other than traders (Reuters/Bloomberg, BAFEDA, calling other bank back
offices) of the same organization which is required to avoid any conflict of interest. Revaluation is done daily and the profit and loss impact is
adjusted accordingly.
Translation of foreign currency operations
The results of financial statements of any foreign operation (including subsidiaries, off-shore banking unit, etc.) whose functional currency is not
Bangladeshi Taka are translated into Bangladeshi Taka as follows:
a. assets and liabilities for each statement of balance sheet have been translated at the closing rate on the date of the balance sheet.
b. income and expenses for the profit and loss account have been translated at average rate.
Foreign currency differences are recognised in OCI and accumulated in the foreign currency translation reserve, except to the extent that the
translation difference is allocated to NCI.
Exchange rates
The assets and liabilities as at 31 December 2022 in foreign currencies have been converted to BDT at the following rates:
Name of Currencies 2022 2021
USD 1= BDT 103.30 85.80
SGD 1= BDT 76.60 63.41
GBP 1= BDT 124.43 115.70
AUD 1= BDT 69.44 62.33
EUR 1= BDT 110.01 97.12
CHF 1= BDT 111.74 93.71
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BRAC Bank Limited
JPY 1= BDT 0.77 0.75

CAD 1= BDT 75.97 67.12
AED 1= BDT 28.13 23.36
CNY 1= BDT 14.84 13.46
Translation reserve in separate financial statements
The functional currency of the Bank's Off-shore Banking Unit (OBU) is in United States Dollar (USD). So, translation reserve has been generated in
separate financial statements for translating offshore banking operations in bank's presentation currency (BDT).
Translation reserve in consolidated financial statements
The functional currency of one of the Bank's subsidiaries BRAC SAAJAN Exchange Limited is in Great Britain Pound (GBP). As a result, in
consolidated financial statements translation reserve includes the balances of separate financial statements as well as the balances for
translating SAAJAN's GBP operations to bank's presentation currency (BDT).
2.11 Provisions, contingent liabilities and contingent assets
The Bank recognises provisions only when it has a present obligation as a result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
No provision is recognised for-
a. Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the bank; or
b. Any present obligation that arises from past events but is not recognised because-
i) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
ii) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as contingent liabilities. These are assessed continually and only that part of the obligation for which an outflow of
resources embodying economic benefits is probable, is provided for, except in extremely rare circumstances where no reliable estimate can be
made.
Contingent assets are not recognised in the financial statement since these may result in the recognition of income that may never be realised.
However, due to regulations of Bangladesh Bank (Central Bank of Bangladesh) and Bank Company Act, 1991, as amended, all items of such
contingent assets/liabilities are shown as off balance sheet items under balance sheet of the bank as a separate section.
2.12 Statement of changes in equity
Statement of Changes in Equity has been prepared in accordance with IAS 1 “Presentation of Financial Statements” and following the guidelines
of Bangladesh Bank BRPD circular no.14 dated 25 June 2003.
2.13 Cash flow statement
Cash Flow Statement is prepared principally in accordance with IAS 7 “ Statement of Cash Flows” under the guidelines of BRPD circular no.14
dated 25 June 2003. The Cash Flow Statement shows the structure of and changes in cash and cash equivalents during the year. It Cash Flows
during the period have been classified as operating activities, investing activities and financing activities.
2.14 Basis of preparation of liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity term as per the following basis:
a) Balances with other bank and financial institutions, money at call and short notice etc. are on the basis of their maturity term.
b) Investments are on the basis of their residual maturity term.
c) Loans and advances are on the basis of their repayment/ maturity schedule.
d) Fixed assets are on the basis of their useful life.
e) Other assets are on the basis of their adjustment.
f) Borrowing from other banks, financial institutions and agents as per their maturity/ repayment term.
g) Deposits and other accounts are on the basis of their maturity term and behavioural past trend.
h) Other long term liability on the basis of their maturity term.
i) Provisions and other liabilities are on the basis of their settlement.
2.14 Changes in accounting policies, estimates and errors
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors , states that the effect of a change in accounting policy and correction of
errors, if material, is to be applied retrospectively, and change in an accounting estimate is to be applied prospectively. The carrying amount of
assets, liabilities, or equity may be changed following a change in accounting estimates in the period of the change. The bank followed the same
accordingly.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all the periods presented in these financial statements except the
recognition of defined benefit obligation and plan assets relating to the gratuity fund on the balance sheet of the Bank from 2018. The net effect
in opening balance for such recognition has been charged in profit and loss considering the effect as immaterial as per IAS - 8.
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BRAC Bank Limited
3.1 Assets and the basis of their valuation

3.1.1 Cash and Cash Equivalents
For the purpose of presentation in the cash flow statements, cash and cash equivalents includes cash in hand and cash at bank (regardless of
maturity), highly liquid interest bearing investment/securities with original maturities of less than three month. Cash flow statement is prepared
in accordance with IAS 7 Statement of Cash Flows. However cash flows from operating activities have been presented according to the format
mentioned in BRPD circular no. 14 dated 25 June 2003.
3.1.2 Investments (Categorized and reported as per Bangladesh Bank)
Investment in securities
All investment securities are initially recognised at cost, including acquisition charges associated with the investment. Premiums are amortised
and discount accredited, using the effective yield method, and are taken to discount income. The valuation method of marking-to-market for
investments used are:
Held To Maturity (HTM)
Investments which have fixed or determinable payments and fixed maturity that the group has the positive intent and ability to held to maturity,
other than those that meet the definition of 'Held at amortised cost others' are classified as held to maturity. These investment are subsequently
measured at amortised cost, less any provision for impairment in value. Amortised cost is calculated by taking into account any discount or
premium in acquisition. Any gain or loss on such investments is recognised in the statement of income when the investment is de-recognised or
impaired.
Held For Trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing - in short trading or if designated as
such by the management. After initial recognition, investments are measured at market value, and any change in the fair value is recognised in
the statement of income for the period in which it arises. Transaction costs, if any, are not added to the value of investments at initial
recognition.
Revaluation of government securities
According to DOS Circular no. 05, dated 26 May 2008, DOS Circular no. 05, dated 28 January 2009 and DOS Circular no. 02, dated 19 January
2012, HFT securities are revalued once each week using marking-to-market concept, and the HTM securities are amortised once a year
according to Bangladesh Bank guidelines. HTM securities are also revaluated if they are reclassified to HFT category with the Board’s approval.
Investment in quoted securities
These securities are bought and held primarily for the purpose of selling them in the future or holding for dividend income, which are reported at
cost. Unrealised gains are not recognised in the profit and loss statement. But required provisions are kept for diminution in value of investment.
Investment in mutual funds

The Department of off-site Supervision (DOS) of Bangladesh Bank vide its circular letter no. 03 dated 12 March 2015 directed that investment in
mutual fund (closed end) will be revalued at lower of cost and (higher of marker value and 85% of NAV). Provision should be made for any loss
arising from diminution in value of investment on portfolio basis; otherwise investments are recognized at cost.
Investment in unquoted securities
Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of book value over cost for
determining the carrying amount of investment in unlisted securities. As per Bangladesh Bank DOS Circular no. 04, dated 24 November 2011,
provision for diminution in value of investment was made by netting off unrealised gain (loss) of shares from market price/book value less cost
price.
Besides, the Bank complied with Bangladesh Bank BRPD Circular no. 14, dated 25 June 2003, as follows, “All investments in shares and
securities (both dealing and investment) should be revalued at the year end. The quoted shares should be valued as per market price in the
stock exchange(s) and unquoted shares as per book value of the last audited balance sheet. Provisions should be made for any loss arising from
diminution in value of investment.”
Summary of recognition and measurement basis has been shown as under:
Measurement after
Investment Class Initial Recognition Recording of changes
Recognition
Marking to Market/ fair Loss to profit and loss A/C, gain to
Government Treasury Bills (HFT) Cost
value revaluation reserve
Amortised gain to revaluation reserve
Government Treasury Bills (HTM) Cost Amortised cost
and loss to profit and loss
Marking to Market/ fair Loss to profit and loss A/C, gain to
Government Treasury Bonds (HFT) Cost
value revaluation reserve
Amortised gain to revaluation reserve
Government Treasury Bonds (HTM) Cost Amortised cost
and loss to profit and loss
Zero Coupon Bond Cost Cost N/A
Prize Bond and Other Bond Cost Cost N/A
Debentures Cost Cost Profit and Loss Account
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BRAC Bank Limited
Lower of cost or NAV of last

Un-quoted Shares (ordinary) Cost Profit and Loss Account
audited account
Lower of cost or market Loss (net off gain) to Profit and Loss
Quoted Shares (ordinary) Cost
price at balance sheet date Account but no unrealized gain
Provision for unrealised loss (net) to
Mutual Fund (open-end) Cost Lower of cost or 95% of NAV profit and loss account but no
unrealised gain booking.
Provision for unrealised loss (net) to
Lower of cost or (higher of
Mutual Fund (closed-end) Cost profit and loss account but no
market value or 85% of NAV)
unrealised gain booking.
3.1.3 Loans and advances
a) Loans and advances are stated in the balance sheet on the gross basis.
b) Interest on loans and advances is calculated daily on accrual basis for all loans accounts but charged in client statements monthly,
quarterly and installment date based on product type.
c) Commission and discounts on bills purchased and discounted are recognized at the time of realization.
b) Provision for loans and advances is made on the basis of period-end review by the management following instructions contained in
Bangladesh Bank BRPD Circular no. 14, dated 23 September 2012, BRPD circular no. 15, dated 23 September 2012, BRPD Circular no.
19, dated 27 December 2012, BRPD Circular no. 05, dated 29 May 2013, BRPD Circular no. 16, dated 18 November 2014, BRPD Circular
no. 08, dated 02 August 2015, BRPD Circular no. 12, dated 20 August 2017, BRPD Circular no. 15, dated 27 September 2017, BRPD
Circular no. 01, dated 20 February 2018, BRPD Circular no. 07, dated 21 June 2018, BRPD Circular no 13, dated 18 October 2018 and
BRPD Circular no. 03, dated 21 April 2019, BRPD circular no. 52 Dated 20 October 2020, BRPD circular no. 16 dated 21 July 2020, BRPD
circular No: 56 dated 10 December 2020, BRPD circular No: 14 dated 22 June 2022, BRPD circular No: 51 dated 18 December 2022.
Provisions and interest suspense are separately shown under other liabilities as per the First Schedule of the Bank Company Act 1991
(amended up to 2018). The rates of provision for loans and advances are given below:
Unclassified Classified
Type of Loans and Advances Special Mention Substandard
Standard Doubtful (DF) Bad and Loss (BL)
Account (SMA) (SS)
Consumer financing - House building 1% 1% 20% 50% 100%
Consumer financing - Loans for professionals
2% 2% 20% 50% 100%
Consumer financing - Other than house

2% 2% 20% 50% 100%
building and professionals
Loans to BHs/ MBs against share etc. 2% 2% 20% 50% 100%
Small and medium enterprise (Medium) 0.25% 0.25% 20% 50% 100%
Small and medium enterprise (Cottage, Micro,
0.25% 0.25% 5% 20% 100%
Small)
Short term Agriculture/ Micro credit 1% 1% 5% 5% 100%
Credit Card 2% 2% 20% 50% 100%
All others 1% 1% 20% 50% 100%
Off Balance Sheet exposure 1% N/A N/A N/A N/A
c) Interest on classified loans and advances is kept in a suspense account as per BRPD circular no. 27, dated 31 August 2010 and recognised
as income on realisation, as per BRPD circular no. 14 and 15, dated 23 September 2012. Interest is not charged on bad and loss loans as
per the guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate accounts.
d) Write off Loans and Advance: Loans and advances are written-off to the extent that (i) there is no realistic prospect of recovery and (ii)
against which legal cases are filed and classified as bad and loss, as per BRPD circular no. 02, dated 13 January 2003 and 13, dated 07
November 2013. These write-offs however will not undermine/affect the claim amount against the borrower. Detailed memorandum
records for all such write-off accounts are meticulously maintained and followed up.
3.1.4 Fixed assets including premises, furniture and fixtures
A. Property, plant and equipment (PPE)
Property, plant and equipment (PPE) include all type of tangible assets i.e. land, office floor space, furniture & fixtures, office equipments, IT
hardware and motor vehicles etc.
Recognition and measurement

All fixed assets including land are stated at cost less accumulated depreciation, as per IAS 16 Property, Plant and Equipment. Right-of-use assets
are measured at cost, less any accumulated depreciation, and adjusted for any re-measurement of lease liabilities.
The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future economic benefits associated with the
item will flow to the entity; and the cost of the item can be measured reliably.
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BRAC Bank Limited
The cost of the items of property, plant and equipment comprises:

i) any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by the management.
ii) any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by the management.
iii) the initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located, the obligation for which an
entity incurs either when the item is acquired or as consequence of having used the item during a particular period of purpose other than to
produce during that period.
Subsequent costs
Subsequent costs of enhancement of existing assets are recognised as an addition to the asset, only when it is probable that future economic
benefits associated with the item will flow to the bank and the cost of the item can be measured reliably. All other repairs and maintenance
expenses are charged to the profit and loss account during the financial period in which they are incurred.
Depreciation of PPE
Land is not depreciated. Depreciation is charged on straight-line basis. In case of acquisition of fixed assets, depreciation is charged from the
month of acquisition, whereas no depreciation on assets disposed-off is charged from the month of disposal. Asset category-wise depreciation
rates are as follows:
BRAC Bank BRAC EPL BRAC EPL Stock BRAC Saajan

Category of assets bKash Limited
Limited Investments Limited Brokerage Limited Exchange Limited
Furniture and fixture 10% 10%-20% 12.5% 10% 20%

Building 2.5% 5% 2% - -
Office equipment 20% 10%-20% 20% 10% 20%
IT equipment - Hardware 20% 25% - - 20%
IT equipment - PC, Laptop,
33.33% 33.33% 25% 33.33% 33.33%
UPS, Printer and Scanner
IT equipment - Software 10%-20% 33.33% 33.33% 20% 20%
Motor vehicles 20% 20% 20% - 20%
Office decoration/ renovation
10% 15% 15% 10% 20%
works
The consolidated financial statements of BRAC Bank for the year ended 31 December 2022 have been prepared applying uniform depreciation
policy in compliance with IFRS 10 " Consolidated Financial Statements".
Gain or loss on disposal of PPE
Sale price of fixed assets are determined on the basis of fair value of the assets. Gain or loss on sale of assets are recognised in the profit and
loss account as per provision of IAS 16 Property, Plant and Equipment.
Impairment of PPE
At each balance sheet date, the bank assesses whether there is any indication that the carrying amount of the asset exceeds its recoverable
amount. If any such indication exists, the Bank should estimate the recoverable amount of the asset. An asset is carried at more than its
recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is
described as impaired and impairment loss is recognised as an expense in the profit and loss account unless the asset is carried at revalued
amount in accordance with IAS 16 Property, Plant and Equipment, in which case any impairment loss of a revalued asset should be treated as
revaluation decrease under the accounting standard. No impairment loss was recognised up to the reporting period in separate financial
statement, as no such indication existed as on the balance sheet date.
B. Intangible assets
Software
Software acquired by the bank is stated at cost less accumulated amortisation and accumulated impairment losses. Subsequent expenditure on
software assets is capitalised only when it increases future economic benefits embodied in the specific asset to which it relates. All expenditure
is expensed as incurred. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of the software, from the
date that it is available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in
the asset. The estimated useful life of software is five to ten years. Amortisation methods, useful lives and residual values are reviewed at each
financial year-end and adjusted, if appropriate.
License
Value of the license is recognised at cost less accumulated impairment losses.
Goodwill
Goodwill that arises upon the acquisition of subsidiaries represents the excess of the fair value of the purchase consideration over the fair value
of the BRAC Bank group’s share of the assets acquired and the liabilities and contingent liabilities assumed on the date of the acquisition and is
measured at cost less accumulated impairment losses in accordance with IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
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BRAC Bank Limited
Impairment of intangible assets

Intangible assets with indefinite useful life, like goodwill etc., are tested for impairment at the end of each year. As per IAS 36 Impairment, any
intangible assets with definite useful life are first reviewed for any indication of impairment. If any indication exists, then the impairment test is
carried out.
C. IFRS 16 "Leases" and its relevant assumptions and disclosures

IFRS 16: "Leases" has come into force on 1 January 2019, as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). BRAC
Bank applied IFRS 16 using modified retrospective approach where the bank measured the lease liability at the present value of the remaining
lease payments, discounted it using the bank’s incremental borrowing rate at the date of initial application, and recognised a right-of-use asset
at the date of the initial application on a lease by lease basis.
Right-of-use assets
The Bank recognises right-of-use assets at the date of initial application of IFRS 16. Right-of-use assets are measured at cost, less any
accumulated depreciation, and adjusted for any re-measurement of lease liabilities. Right-of-use assets are depreciated on a straight-line basis
over the lease term. The right-of-use assets are presented under property, plant and equipment.
Lease liabilities
At the commencement date of the lease, the bank recognises lease liabilities measured at the present value of lease payments to be made over
the lease term using incremental borrowing rate at the date of initial application. Lease liability is measured by increasing the carrying amount to
reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments, and re-measuring the carrying amount to reflect
any reassessment or lease modifications.
Interest on the lease liability in each period during the lease term shall be the amount that produces a constant periodic rate of interest on the
remaining balance of the lease liability.
Short-term leases and leases of low value assets
The Bank has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short-term leases, i.e. for which
the lease term ends within 12 months of the date of initial application. The Bank recognises lease payments associated with these leases as an
expense.
The contracts for premises with all branches, head office, regional offices, data centers and disaster recovery centers are considered for lease
calculation.
Accounting of lease modification

IFRS 16 defines a modification as a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and
conditions of the lease. Any change that is triggered by a clause that is already part of the original lease contract (including changes due to a
market rent review clause or the exercise of an extension option) is not regarded as a modification.
Gain or loss on termination of lease agreements
As per IFRS-16, if the lease is modified to terminate the right of use of one or more underlying assets or to shorten the contractual lease term,
the bank (lessee) remeasures the lease liability at the effective date of the modification using a revised discount rate. Furthermore, it decreases
the carrying amount of the right-of-use assets to reflect the partial or full termination of the lease. Any gain or loss relating to the partial or full
termination is recognised in profit or loss.
D. Capital work-in-progress (CWIP)

Costs incurred, but if the related asset is yet not ready or available for use as intended by management, are recognised as capital work-in-
progress and disclosed as a part of fixed assets. Once the underlying asset is ready and available for use, it is transferred to fixed assets.
However, no depreciation is charged on CWIP.
E. Investment properties
Investment property is held to earn rentals or for capital appreciation or both and the future economic benefits that are associated with the
investment property but not held for sale in the ordinary course of business. Investment property is accounted for under cost model in the
financial statements. Accordingly, after recognition as an asset, the property is carried at its cost, less accumulated depreciation and
accumulated impairment loss.
3.1.5 Other assets and basis of their measurement

Other assets include mainly all other financial assets, interest and other unrealised income receivable, advance for operating expenditure and
stocks of stationery and stamps etc.
a. Interest receivables
Interest receivable is the amount of interest that has been earned but has not yet been received in cash. Interest on loans and advances is
calculated and accrued on a daily product basis but charged to customer accounts in different frequency based on product nature. The accrued
but uncharged interest portion is reported as interest receivables on reporting date. Interest receivables is recognized only when the
unconditional right to receive the cash flows of the loans and advances is established.
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BRAC Bank Limited
b. Reporting investment in subsidiaries and associates in separate financial statements

In accordance with the IAS 27 "Separate Financial Statements", an entity may choose any of the following methods to account for investment in
subsidiaries, associates and joint ventures in its separate financial statements:
- at cost;
- in accordance with IFRS 9; or
- using the equity method as described in IAS 28;
BRAC Bank adopted IFRS 9 Fair value through other comprehensive income (FVOCI) method for accounting equity investment in subsidiaries and
associates since June 2020. As all of the investment are in unquoted investment, management used net assets value of the each investment as
per the financial statements of the entity every year as fair value because if buyer offer any price of our investments, they will refer to NAV as
reference price.
Accordingly, below cumulative fair value gain/(loss) has been directly recognised in equity in the separate financial statements of the bank till to
date 31 December 2022.
Gross fair value

Name of the subsidiaries and BBL’s investment Net asset value of BBL's share of net Gain/(loss) net of
gain/(loss)
associates at cost investee asset deferred tax
BRAC EPL Investment Ltd. 2,891,704,014 1,302,350,935 1,301,639,222 (1,590,064,792) (1,351,555,073)

BRAC EPL Stock Brokerage
1,344,147,500 1,457,088,870 1,311,371,003 (32,776,497) (27,860,022)
Ltd.
bKash Ltd. 168,921,800 30,602,346,146 10,937,169,476 10,768,247,676 9,153,010,525
BRAC Saajan Exchange Ltd. 171,528,531 22,534,817 21,126,396 (150,402,135) (127,841,815)
BRAC IT Services Ltd. (biTS) 23,372,000 212,076,519 21,206,835 (2,165,165) (1,840,390)
Total 4,599,673,845 33,596,397,287 13,592,512,932 8,992,839,087 7,643,913,224
For shareholding percentage, please refer to Note 1.6 "Summary of shareholding in subsidiaries and associates". Economic shareholding
percentage of bKash 35.74% has been used for BBL's share of net asset considering dilution for bKash's preference shares having rights like
ordinary shares.
c. Reporting investment in subsidiaries and associates in consolidated financial statements

Investment in subsidiary is consolidated in the consolidated financial statements considering as a single economic entity in accordance with the
IAS 27 Separate Financial Statements and IFRS 10 Consolidated Financial Statements respectively.
Investment in associate is recognised in the consolidated financial statements under equity method as per IAS 28 Investments in Associates and
Joint Ventures.
The summary of accounting of equity investment in subsidiaries and associate both in consolidated and separate financial statements is as
follows:
Investment class Initial recognition Measurement after recognition Recording of changes
Fair value through other comprehensive Impairment loss is adjusted
income in separate financial statements automatically in OCI due to fair value
Investment in subsidiary Cost and equity method less accumulated accounting. Goodwill impairment is
impairment, if any, in consolidated recognised in profit and loss in
financial statements. consolidated financial statements.
Fair value through other comprehensive Impairment loss is adjusted
income in separate financial statements automatically in OCI due to fair value
Investment in associate Cost and equity method less accumulated accounting. The share of post
impairment, if any, in consolidated acquisition income is recognised in
financial statements. consolidated profit and loss account.
3.2 Liabilities and provisions
3.2.1 Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include interest-bearing borrowings redeemable at call, on-demand and short-
term deposits lodged for periods of less than 6 months. These items are brought to account at the gross value of the outstanding balance which
includes accrued interest.
3.2.2 Deposits and other accounts

Deposits include non interest-bearing current deposit redeemable at call, interest bearing on-demand and short-term deposits, savings deposit
and term deposit lodged for periods from 3 months to 12 years. These items are brought to account at the gross value of the outstanding
balance which includes accrued interest.
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BRAC Bank Limited
3.2.3 Other liabilities

Other liabilities comprise items such as provision for loans and advances, provision for interest receivables, provision for taxes, interest
suspense, accrued expenses. Other liability is recognised in the balance sheet according to the guideline of Bangladesh Bank, IAS and IFRS,
Income Tax Ordinance-1984 and internal policies of the Bank. Provisions and accrued expenses are recognised in the financial statements when
the Bank has a legal or constructive obligation as a result of past event, it is probable that an outflow of economic benefit will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
a. Provision for loans and advances

Provision for loans and advances is created for covering the Bank from possible loan losses in the future. General provision is made on the
outstanding amount of loans and advances without considering the classification status following the prescribed rate of Bangladesh Bank.
Classified loans and advances of the Banks are categorised as Sub-Standard, Doubtful and Bad/Loss as per Bangladesh Bank guidelines. For
loans which are classified as sub-standard, doubtful or bad/loss, specific provision is created netting off security value and interest suspense
from the amount outstanding.
b. Provision for other assets

Other assets excluding investment in subsidiaries is subject to making provision based on their ageing as per Bangladesh Bank BRPD circular
no. 14 dated 25 June 2001 and BRPD circular no. 04 dated 12 April 2022. Full provision is kept on other assets which are outstanding for one
year or more or classified as Bad/Loss.
c. Provision for diminution in value of investments
Please refer to above note 3.1.2 for detail policies for recognition, measurement and provisioning of investment.
d. Provisions for off balance sheet items
No provision is kept on items of derivatives as there is no exposure on such gross value for the Bank. Provision for other off balance sheet items
made as per BRPD circular no. 14 dated 23 September 2012 and BRPD circular no. 7 dated 21 June 2018 except on 'bills for collection' and
'guarantees' where the counter guarantees have been issued by Multilateral Development Bank (MDB)/International Bank having BB rating
grade '1' equivalent outlined in the Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks in line with
Basel III).
e. Provisions for nostro accounts

Provisions for unsettled transactions on nostro accounts made are reviewed on a monthly basis by management in Risk management meeting
(RMM) and certified by the Bank's external auditors on a semi-annual basis in accordance with Bangladesh Bank Foreign Exchange Policy
Department (FEPD) circular letter No. (FEPD)/01/2005-677 dated 13 September 2005. At the Balance Sheet date, Bank is not required to make
provision regarding un-reconciled debit entries which are outstanding for more than six (06) months in accordance with BRPD circular no. 04
dated 12 April 2022 .
f. Interest suspense
Classified loans and advances of the Banks are categorised as sub-standard, doubtful and bad/loss as per guidelines of Bangladesh Bank.
Interest accrued on Sub-Standard, Doubtful and Bad/Loss loans is transferred to interest suspense account and not considered as interest
income. This interest is recognised as interest income when it is realised in cash by the bank.
3.2.4 Share capital and shareholders' equity

Capital Management
The Bank has a capital management process in place to measure, deploy and monitor its available capital and assess its adequacy. This capital
management process aims to achieve four major objectives: exceed regulatory thresholds and meet longer-term internal capital targets, maintain
strong credit ratings, manage capital levels commensurate with the risk profile of the Bank and provide the Bank’s shareholders with acceptable
returns.
Capital is managed in accordance with the Board-approved Capital Management Planning from time to time. Senior management develop the
capital strategy and oversee the capital management planning of the Bank. The Bank’s Finance, Treasury and Risk Management department are
key in implementing the Bank’s capital strategy and managing capital. Capital is managed using both regulatory capital measures and internal
matrix.
a. Authorized capital
Authorized Capital is the maximum amount of share capital that the bank is authorised by its Memorandum of Association and Article of
Association to issue to shareholders.
b. Issued, Subscribed and Paid up capital

The issued share capital of the bank is the total nominal value of the shares of the bank which have been issued to shareholders and which
remain outstanding.
Paid up share capital represents total amount of shareholder capital that has been paid in full by the ordinary shareholders. Holders of ordinary
shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders’ meetings. In the event of a
winding up of the Bank, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any residual proceeds of
liquidation.
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BRAC Bank Limited
c. Share Premium
Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value of the shares. The share premium
shall be utilised in accordance with provisions of section 57 of the Companies Act, 1994 and as directed by Bangladesh Securities and
Exchange Commission in this respect.
d. Statutory reserve
The Bank is required to transfer at least 20% of its profit before tax to the Statutory Reserve in accordance with provisions of section 24 of the
Banking Companies Act, 1991. This is mandatory until such reserve is equal to the paid up capital together with amount in the share premium
account.
e. Dividend Equalization Fund
According to BRPD Circular No. 18, dated 20 October 2002, the equivalent amount of exceeding 20% cash dividend shall be kept separately
under Dividend Equalization Fund which shall be treated as permanent capital. On June 02, 2016 cash dividend @ 25% (Tk. 2.5 per share of 10
each) amounting to Taka 1,776,092,275 was approved by the shareholders in 17th Annual General Meeting and the cash dividend was paid
accordingly. Therefore the excess 5% cash dividend equivalent amounting to Taka 355,218,455 has been transferred to Dividend Equalization
Fund. This is treated as Common Equity Tier-1 (CET1)’ of the Bank.
f. Revaluation reserve on govt. securities

Revaluation reserve represents revaluation on Treasury bond (HFT and HTM) in accordance with the DOS circular no. 05, dated 26 May 2008
and DOS circular no. 05, dated 28 January 2009.
g. Remeasurements gain/(loss) of defined benefits liability (assets)

Remeasurement gain/loss arises from the actuarial valuation report carried out by professional actuary time to time on BRAC Bank Employees'
Gratuity Fund. The last actuarial valuation were carried out based on 31 December 2022 and actuarial gain/loss was recognised in equity as a
component of equity net of any deferred tax impact.
h. Non Controlling Interest
Non-controlling interest (NCI) in business is that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are
not owned, directly or indirectly through subsidiaries, by the parent. The portion of the NCI (percentage of ordinary shares owned by non-
controlling shareholders) in BRAC EPL Investments Limited, BRAC EPL Stock Brokerage Limited, bKash Limited and BRAC SAAJAN Exchange
Limited are 0.05%, 10%, 49%, and 6.25% respectively.
3.2.5 Off-balance sheet exposures and other commitments

Off Balance Sheet Items include various non-derivative financial instruments primarily letter of credit (L/C), letter of guarantee (L/G), acceptance
and endorsements, bills for collection etc. and various derivative instruments like forward contracts and currency rate swaps etc.
3.2.6 Revenue and expense recognition

Interest Income
Interest income is recognised on an accruals basis. Interest on loans and advances ceases to be taken into income when such advances are
classified, kept in interest suspense account. Interest on classified advances is accounted for on a realisation basis as per Bangladesh Bank
guidelines.
a. Interest and fees receivable on credit cards
Interest and fees receivable on credit cards are recognised on an accruals basis. Interest and fees cease to be taken into income when the
recovery of interest and fees is in arrear for over three months. Thereafter, interest and fees are accounted for on realisation basis.
b. Income on Bills purchased and discounted
Income on Bills purchased and Discounted is recognised on accrual basis.
Interest paid on deposits and borrowings etc.
Interest paid and other expenses are recognised on an accrual basis.
Investment income
Income on investments is recognised on an accruals basis. Investment income includes interest on treasury bills, treasury bonds, zero coupon,
shares, debentures etc.
Dividend Income on Shares
Dividend income from investment in shares is recognised when the right to receive the dividend is established. It is recognised when:
a) It is probable that the economic benefit associated with the transaction will flow to the entity; and
b) The amount of the revenue can be measured reliably.
Commission, exchange and brokerage
The Bank earns fees and commission from a diverse range of services provided to its customers. These include fees and commission income
arising on financial and other services provided by the Bank including trade finance, credit cards, debit cards, passport endorsement, visa
processing, student service, loan processing, loan syndication, locker facilities and SMS banking etc. Fees and commission income arises on
services rendered by the Bank are recognised on a realisation basis.
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BRAC Bank Limited
Other operating income

The profit on sale of fixed assets is determined as the difference between the carrying amount of the assets at the time of disposal and the
proceeds of disposal, and is recognised as an item of other income in the year in which the significant risks and rewards of ownership are
transferred to the buyer.
3.2.7 Employee benefits

a. Provident Fund (Defined Contribution Plan)
A "Defined Contribution Plan" is a post employment benefit plan under which an entity pays fixed contribution into a separate entity and will have
no legal constructive obligation to pay further amounts. Provident Fund benefits are given to the staff of the Bank in accordance with the
registered Provident Fund Rules. The commissioner of Income Tax, Large Tax Payers Unit, Dhaka has approved the Provident Fund as a
recognized fund within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of Income Tax ordinance 1984. The
fund is operated by a Board of Trustees consisting of employees of the Bank. All confirmed employees of the Bank are contributing 10% of their
basic salary as subscription of the fund. The bank also contributes equal amount of the employees' contribution to the fund. In addition, there
will be an option for a voluntary contribution of a maximum of 10% (at a multiple of 5%) from the monthly basic salary of the employee at the
time of payment thereof and will be paid to the Trustees account mentioned in Rule -13. Upon completion of 1 year of service length after
confirmation employees are entitled to 100% of employer's contribution along with his/her own contribution. Interest earned from the
investments is credited to the members' account on half yearly basis.
b. Gratuity Fund (Defined Benefit Plan)
Gratuity Fund benefits are given to the staff of the Bank in accordance with the approved Gratuity Fund rules. Employees are entitled to Gratuity
benefit after completion of minimum 05 (five) years of service in the Bank. The Gratuity is calculated on the basis of last basic pay and is payable
at the rate of one month's basic pay for every completed year of service, or in the case of service of 10 years or more at the rate of one and half
month's basic pay for every completed year of service. Beyond 5 years, 6 months and more shall be considered as full year of service. Gratuity
fund is a "Defined Benefit Plan" and contribution to Gratuity Fund is measured through the result of actuarial valuation of the fund.
The Bank’s net obligation in respect of gratuity is calculated by estimating the amount of future benefit that employees have earned in the
current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations
is performed annually by a qualified actuary using the projected unit credit method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. The Bank
determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to
measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account
any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense,
current service cost and other expenses related to defined benefit plans are recognised as salaries and allowances in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or
loss on curtailment is recognised immediately in profit or loss.
c. Worker's Profit Participation Fund (WPPF)
Consistent with the industry practice and in accordance with section 11(1) of the Bank Company Act,1991 (as amended up to date) and
subsequent clarification given by Bank & Financial Institutions Division (BFID), Ministry of Finance, no provision has been made by bank in the
reporting period for WPPF.
d. Life Insurance
The objective of the scheme is to provide death or permanent disability benefits to its confirmed employees and on their families with a sum
equal to 50 times (in case of normal death) and 100 times (in case of accidental death) of the last drawn basic salary to the nominee.
e. Welfare Fund
The objective of the Employees’ Welfare Fund is to provide regular category employees from Officer Grade-1 to Senior Principal Officer of the
BRAC Bank incurring severe accidents during official job, extended illness (not less than 3 months), Education for Children, Marriage of Children
which costs would not be affordable by the employee and which are not covered by any other means. All regular confirmed employees of the
Bank are contributing monthly to the Fund according to the designation. The sum subscribed monthly from salaries of the employees is credited
separately in an “Employee Welfare Fund” as a liability of the Bank. There are at least 3 (three) members of Management Committee to manage
the fund. The Managing Director and CEO of the Bank is the Chairman of this committee and other 2 (two) members are nominated from the
regular category staff.
f. Hospitalization Insurance
The Bank has introduced a health insurance scheme to its confirmed employees and their respective dependents at rates provided in the health
insurance coverage policy.
g. Performance bonus
BRAC Bank provides performance bonus to the eligible employees every year. This bonus amount is being distributed among the employees
based on their performance rating and management decision. The bonus amount is paid annually, normally in the following year and the costs
are accounted for in the period to which it relates.
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BRAC Bank Limited
h. Staff leave facilities

Annual leave
The provision for leave fare represents the current outstanding liability to employees at the balance sheet date. Leave Fare Assistance is a non-
recurring benefit for all permanent employees of the Bank who are entitled to annual leave. According to Bangladesh Bank policy all permanent
employees have to avail 15 consecutive days of mandatory leave and LFA will be given in this leave period.
Casual leave
Casual leave means a leave of absence for a very short period granted to an employee who may be unable to attend duty due to sudden illness
or urgent private affairs. Casual leave up to 5 working days can be granted per year. Not more than 3 days casual leave can be taken at a time.
Sick leave
Employee may avail Sick leave up to 14 calendar days in a year. Sick Leave for more than 2 days can be taken subject to submission of medical
certificates.
Paternity leave
All regular male employees are entitled to avail paternity leave for a period of 5 working days. Such leave can be taken before and/or after the
birth of the child only to look after his family and home. A male employee can avail this leave only twice during his service life.
Maternity leave
Female employees of the Bank are entitled to 6 (six) months of paid maternity leave. They will be eligible to avail this paid maternity leave after 6
(six) months of continuous service with the bank for the first 2 (two) children. A female employee who wants to avail maternity leave before
completion of 6 (six) months of continuous service with the bank will also be entitled to maternity leave but that would be without pay.
i. Subsidized Scheme - Staff Loan
Personal, House building and car loans are provided to the permanent staff at a subsidized rate. Criteria and details of types wise staff loan is
given below:
Personal Loan: A permanent staff can avail personal loan taking approval from department head and Head of HR subject to completion of a
specific service length and performance rating.
House building Loan: A permanent staff completing 5 year of service can avail house building loan taking approval from House Building Loan
Committee subject to performance rating and completed service length with BRAC Bank.
Car Loan: All confirmed staff at job grade from PO can avail staff car loan taking approval from department head and head of HR.
3.2.8 Taxation
Income tax on profit for the year comprises current and deferred tax and is based on the applicable tax law in Bangladesh. It is recognised in the
income statement as tax expense.
a. Current Tax
Current tax is the expected tax payable on taxable income for the year, based on tax rates and tax laws which are enacted at the reporting date,
including any adjustment for tax payable in previous periods. Current tax for current and prior periods are recognised as a liability or asset to the
extent that it is unpaid or refundable.
b. Deferred Tax
The Bank accounted for deferred tax as per IAS 12 Income Taxes. Deferred tax is accounted for any temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and their tax base.
Deferred tax assets, including those related to the tax effects of income tax losses and credits available to be carried forward, are recognised
only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences or unused tax
losses and credits can be utilised.
Deferred tax liabilities are recognised for all taxable temporary differences. They are also recognised for taxable temporary differences arising on
investments and it is probable that temporary differences will reverse in future. Deferred tax assets associated with these interests are
recognised only to the extent that it is probable that the temporary difference will reverse in the foreseeable future and there will be sufficient
taxable profits against which to utilise the benefits of the temporary difference.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability giving rise
to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the reporting date. The
measurement reflects the tax consequences that would follow from the manner in which the Bank, at the reporting date, recovers or settles the
carrying amount of its assets and liabilities.
3.2.9 Earnings Per Share
Earnings Per Share (EPS) has been computed by dividing the basic earning by the weighted average number of ordinary shares outstanding at
the end of the year as per IAS 33 Earnings Per Share.
a. Basic earnings
This represents earnings for the year attributable to ordinary shareholders. Net profit after tax less preference dividend has been considered as
fully attributable to the ordinary shareholders.
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BRAC Bank Limited
Weighted average number of ordinary shares outstanding during the year

This represents the number of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issued during the
year multiplied by a time weighted factor. The time weighting factor is the number of days the specific shares are outstanding as a proportion of
the total number of days in the year.
The basis of computation of number of shares is in line with the provisions of IAS 33 Earnings Per Share. The logic behind this basis is, that the
bonus shares are issued to the existing shareholders without any consideration, and therefore, the number of shares outstanding is increased
without an increase in resources generating new earnings. In contrast, other shares were issued against consideration in cash or in kind, and
accordingly there is an increase in resource generating new earnings. Therefore, the total number of shares issued in particular year are
multiplied by a time weighting factor which is the number of days the specific shares were outstanding as a proportion of total number of days in
the period.
b. Diluted earnings per share
The objective of diluted earnings per share is consistent with that of basic earnings per share; that is, to provide a measure of the interest of
each ordinary share in the performance of an entity taking into account dilutive potential ordinary shares outstanding during the year.
As per IAS-33 "Earnings Per Share", the calculation of diluted earning per share does not assume conversion, exercise or other issue of potential
ordinary shares that would have an anti dilutive effect on earning per share. The bank has no dilutive instruments that is why we are not
considering the diluted earning per share.
3.3 Dividend policy
Dividend on ordinary shares is recognised as a liability and deducted from retained earnings when they are approved by shareholders at the
Annual General Meeting (AGM) of the Bank.
Dividend on ordinary shares for the year that is recommended by the Directors after the balance sheet date for approval of shareholders at the
Annual General Meeting are disclosed in Note - 51.5 to the financial statements.
3.3.1 Dividend Distribution Policy of BRAC Bank
Bangladesh Securities and Exchange Commission (BSEC) has made it mandatory for the listed Company to have their dividend distribution policy
and disclosed it in the Company’s website and in the Annual Report. Accordingly, BRAC Bank has formulated the dividend distribution policy
which has been approved by Board of Directors in its 303rd meeting held on 20 September 2021. The policy is also available in bank's website
accordingly.
The BRAC Bank Ltd shall propose and declare dividend by ensuring compliance with the regulatory guidelines on dividend declaration and other
directives from Bangladesh Securities and exchange commission (BSEC), DSE, CSE, Bangladesh Bank, NBR and other applicable regulatory
requirements as well as aligned with company's business strategy.
3.4 Reconciliation of inter-bank/inter-branch account
Books of accounts with regard to interbank (in Bangladesh and outside Bangladesh) are reconciled on a monthly basis, and there are no material
differences which may affect the financial statements significantly.
3.5 Statement of Segment Reporting
As per IFRS 8 “Operating Segments”, an operating segment is a component of an entity:
i) That engages in business activities from which it may earn revenues and incur expenses (include revenues and expenses relating to
transactions with other components of the same entity);
ii) Whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performances, and
iii) For which discrete financial information is available.
The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME, Retail, Corporate and
Treasury under Conventional banking. The Bank reviews the segments at the end of each reporting period to identify which of its segments are
reportable and disclose the related information for those reportable segments accordingly.
There are 4 (four) operating segments (SME, Retail, Corporate, and Treasury) on standalone basis as on 31 December 2022. Each operating
segment is reportable as per latest evaluation in accordance with IFRS 8: Operating segments.
In consolidated basis, each of subsidiary can be considered as operating segment in addition to segments on standalone basis. However, no
segment reporting has been made for subsidiaries as their audited financial statements have been appended with Bank's financial statements.
3.6 Related party disclosures
Related Party is a party related to an entity if:
i) Directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under control with, the company; has an
interest in the company, that gives it significant influence over the company; or has join control over the company;
ii) The party is an associate (as defined in IAS 28 Investment in Associates and Joint ventures);
iii) The party is a joint venture in which the entity is a venture ( as per IAS 31 Interests in Joint Ventures);
iv) The party is member of the key management of personal of the entity or its parent;
v) The party is a close member of the family of any individual referred to in (i) or (iv);
vi) The party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power in such entity
resides with, directly or indirectly, any individual referred to in (iv) or (v); or
vii) The party is post-employment benefit plan for the benefit of employees of the entity. or of any entity that is related party of the entity.
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BRAC Bank Limited
3.7 Events after the Balance Sheet Date

As per IAS - 10 "Events after the Reporting Period" events after the reporting period are those events, favourable and unfavourable, that occur
between the end of the reporting period and the date when the financial statements are authorized for issue. Two types of event can be
identified:
a) Adjusting events after the reporting period which provide evidence of conditions which existed at the end of the reporting period; and
b) Non adjusting events after the reporting period, are those that are indicative of conditions that arose after the reporting period.
The details about the events after reporting period can be found at note - 51.5.
3.8 Risk management
Risk management is a discipline at the core of every enterprise and encompasses all activities that affect its risk profile. The Standards of Risk
Management, as taken up by the Bank for International Settlements (BIS) and, particularly, Basel Committee on Banking Supervision (BCBS),
has been applied by bank regulators across the world. The Central Bank of Bangladesh, i.e. Bangladesh Bank also issued revised risk
management guidelines in October 2018, which forms the basis of risk management of all scheduled banks in Bangladesh.
BRAC Bank Limited (BBL) rigorously follows a robust risk management framework across the organization and across all risk types, underpinned
by our culture and values where we follow the three lines of defense model. Each of the three lines of defense plays distinct roles in BBL’s
broader governance framework. Bank’s risk management framework is applied enterprise-wide and consists of three key elements: risk
governance, risk appetite, and risk management tools. Major risks for BBL include credit, market, liquidity and operational risk. In line with the
regulatory requirement and elevating its risk management function, BRAC Bank has established comprehensive risk management guidelines,
duly approved by its Board of Directors. The bank's risk management strategy is based on a thorough awareness of diverse risks, a disciplined
risk assessment process, and cautious measurement processes with ongoing monitoring. The bank is continuing to improve its risk management
systems, not only to meet regulatory obligations, but also to achieve superior risk-adjusted returns and optimal capital use while keeping the
organization's business objectives in mind. The bank handles risk across two strategic layers: the managerial layer and the operational layer, for
effective risk management. Risk discussions are held at those levels with the goal of identifying and measuring the impact of various types of
risk in core banking. Risk mitigation and viable solutions are examined, and conclusions are reached as a result.
A. Operating Environment
The Bank’s operating environment during the year ended 2022 were impacted by a number of major global events such as continuation of COVID
19 related disruptions, start of Russia-Ukraine conflict, increase in fuel and commodity prices, strengthening of US Dollars, etc. Most of these
events also had significant impact on the local economic environment affecting the Bank’s operations. From time to time, the Government of
Bangladesh and the local Central Bank (Bangladesh Bank) has issued various directives to manage impacts from these events which the Bank
has followed. Management on regular basis review and monitor the global and country specific macro-economic situation and factor these issues
into the decision making process.
B. Credit risk management
Effective credit risk management is a vital component of a comprehensive risk management strategy and critical to any bank's long-term
sustainability. Considering key elements of credit risk, the bank has separate divisions for Corporate, SME, Retail and Credit Cards are entrusted
with the responsibility of maintaining effective relationship with customers, marketing credit products, exploring new business opportunities, etc.
For transparency in operations during the entire credit process, teams for i. Credit Approval, ii. Asset Operations, iii. Recovery Unit and Special
Asset Management have been set up.
The entire process involves relationship teams of respective asset portfolios (Retail, SME and Corporate) booking clients and the underwriting
team conducting thorough assessment before placing the facility for approval with the authority. Risk assessment includes borrower risk
analysis, industry risk analysis, financial risk analysis, security risk analysis, account performance risk analysis, AML risk analysis and
environmental & social risk analysis of the customer. Post-approval, the Credit Administration Department ensures compliance with all legal
formalities, completion of documentation, including security of proposed facility, and eventual disbursement. This arrangement has not only
ensured segregation of duties and accountability, but also helped in minimizing risk of compromise with quality of the credit portfolio.
To ensure sound practices in credit risk management, including taking calculated risk and maintaining asset portfolio quality, BRAC Bank follows
well-established Credit Policy Guidelines, as approved by the Board of Directors and prepared in line with internationally-accepted risk
management principles and best practices. The guidelines are also aligned with the ‘Guidelines on Credit Risk Management (CRM) for Banks’
(March, 2016) by Bangladesh Bank, the Bank Company Act, 1991 (Amended in 2013), Risk Management Guidelines for Banks (October, 2018)
and credit-related circulars and instructions of Bangladesh Bank circulated from time to time. In 2022, BRAC Bank has updated its credit policy
in line with with the instructions issued by Bangladesh Bank for the loan accounts at the time of sanctioning or renewal, where applicable.
In 2022, BRAC Bank has complied with the instructions given by Bangladesh Bank vide BRPD Circular letter no 04 dated 04-Jan-21 and BRPD
Circular letter no 35 dated 06-Jul-21 for the loan accounts at the time of sanctioning or renewal, where applicable.
C. Foreign exchange risk management
Foreign exchange risk arises from fluctuations in currency prices, influenced by various macro and micro economic factors. Contemporary
financial institutions engage in activities starting from basic currency buy, sell, imports, exports and remittances to complex structured products.
Within the bank, the Treasury division is vested with the responsibility to measure and minimize risk associated with bank’s foreign currency
position.
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BRAC Bank Limited
All treasury functions are clearly demarcated between treasury front office, mid office and back office which has separate and independent
reporting lines to ensure segregation of duties and accountability and also helps minimize the risk of compromise. The front office is involved
only in dealing activities, mid office is involved in monitoring of different limits, e.g. counterparty limits, dealers' trading limits, stop/loss limits,
etc. and calculation of Value at Risk (VaR) and reports directly to the Chief Risk/Operating Officer of the bank. Treasury back office is responsible
for all related processing functions with separate reporting line to the Head of Operations.
Dealing room is well-equipped with Reuter’s dealing system, a number of FX trading platforms and voice loggers, etc. State-of-the-art treasury
system is in place to ensure straight through processing (STP) of all deals. Dealing room also offers an FX trading platform ‘BBL Electra’ to
counterparty banks where all deals are auto-hedged and processed through STP without creating any position for the dealing room. The robust
treasury system of the Bank also facilitates the mid office in effective monitoring and risk reporting and the back office with different reports,
along with easy processing of transactions. Counterparty limit is set by the Credit Committee and monitored by the mid office. Clearly expressed
dealers’ trading limits, stop-loss limits and currency-wise open position limits are in place that are monitored by the mid office. All Treasury
including FX transactions are carried out by well-trained and dynamic dealers who ensure local and global regulatory compliance.
D. Asset liability management
Changes in market liquidity and or interest rate exposes the bank’s business to the risk of loss, which may, in extreme cases, threaten the
survival of the institution. Thus, it is essential that the level of balance sheet risks are effectively managed, appropriate policies and procedures
are established to control and limit these risks and proper resources are made available for evaluating and controlling these risks. The Asset
Liability Management Committee (ALCO) of the bank monitors liquidity and market risks of the bank and plans balance sheet & pricing strategy
accordingly. Bank has dedicated ALM desk under Treasury and FI division, to support ALCO in decision making.
ALCO also reviews the country’s overall economic position, the bank’s liquidity position, ALM ratios, interest rate risks, capital adequacy,
deposit/advances growth, cost of deposit and yield on advances, FX gap, market interest rates, loan loss provision adequacy and deposit and
lending pricing strategy.
E. Operational Risk
Operational risk is the risk of direct or indirect loss resulting a wide variety of causes associated with the Bank’s processes, people, technology or
infrastructure, or from external factors. Operational risk is inherent in the Bank's activities and as with other risk types is managed through an
overall framework with checks and balances that include implementation of three line of defence, recognised ownership of the risk by the
businesses and independent risk management oversight.
The operational risk policy codifies the core governing principles for operational risk management and provides a framework for operational risk.
In accordance with the policy, each business area is responsible to identify its key operational risks as well as the controls established to
mitigate those risks and to ensure compliance with laws, regulations, regulatory administrative actions and the Bank's policies.
The Bank’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the reputation of the Bank’s
reputation with overall cost effectiveness and innovation. In all cases, the Bank’s policy requires compliance with all applicable legal and
regulatory requirements.
F. Equity Risk
Equity risk arises from movement in market value of equities held. The risks are monitored by Bank's Treasury and Fis Division under a well
designed policy framework.
G. Prevention of Money Laundering (ML), Terrorist Financing (TF) and Proliferation Financing (PF)
The Bank as the legal framework of the “Money Laundering Prevention Act, 2012 (amended in 2015)” and Anti Terrorism Act, 2009 (amended in
2013), has been pursuing the policy of closed-fisted compliance with all directives and circulars issued by regulatory body to ensure the culture
of good governance in all aspects of its banking services and operations. The BRAC Bank has implemented additional processes and procedures
covering areas of CDD/KYC, review of high-risk accounts, Trade CDD and risk grading of customers, PEP/IP, Ultimate Beneficial Owner guideline,
name screening (that includes sanctions and adverse media) are under monitoring and revision to ensure policies of the Bank remains up-to-
date.
New transaction monitoring reports that has been introduced with a risk-based approach resulted in the detection and reporting of suspicious
activities/transactions (SAR/STR). Further discipline was brought in improving the quality of the quarterly meeting and self-assessment reports
by branches through training and guidance notes to assess themselves. As the key objectives of the Bank are to ensure the implementation of
policies and procedures in line with BFIU Guidelines, improve employee awareness and commitment, integrate higher engagement and focus of
Senior Management within Bank's control measures to improve overall AML-CFT Governance and better mitigate the money laundering &
terrorist financing risk, thereby thriving to increase AML/CFT rating through a continuous process.
H. Internal Control and Compliance (ICC)
The bank has instituted internal control mechanism to provide reasonable assurance regarding the attainment of objectives in the effectiveness
and efficiency of operations, the reliability of financial reporting and compliance with applicable laws, regulations and internal policies. Through
internal control systems, the bank identifies weaknesses associated with the process and adopts appropriate measures to overcome these
deficiencies.
The main objectives of internal control are as follows:
a) Operations objectives: Attainment of the bank’s mission and vision.
b) Reporting objectives: Timely, accurate and comprehensive reporting - financial and non-financial, internal and external.
c) Compliance objectives: Conducting activities and taking specific actions in accordance with applicable laws and regulations.
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BRAC Bank Limited
The bank has established an effective internal control system whose primary aim is to ensure the overall management of risks and also provide
reasonable assurance that the objectives set by the bank will be met. It has been designed to develop a high level of risk culture among our
people, establish efficient and effective operating standards, ensure reliability of internal and external information, including accounting and
financial information, secure the bank’s operations and assets, and comply with laws, regulatory requirements and internal policies.
The key functions that have been established in reviewing adequacy and integrity of the system of internal controls are as follows:
a) Various committees are established by the Board to assist it in ensuring the effectiveness of the bank’s daily operations are in accordance
with the corporate objectives, strategies and the annual budget, as well as approved policies and business directions.
b) The Internal Audit Department of the Bank checks for compliance with policies and procedures and the effectiveness of the internal control
systems on an ongoing basis using samples and rotational procedures and highlights significant findings in respect of any non-compliance.
c) Audits are carried out on various departments/units, SME Service Centres and all branches in accordance with the annual audit plan,
approved by the Audit Committee of the Board. Findings of the internal audit are submitted to the Audit Committee of the Board for review
at their periodic meetings.
d) The Audit Committee of the Board of the bank reviews internal control issues identified by the Internal Audit Department, Bangladesh Bank,
External Auditors and the management, and evaluates the adequacy and effectiveness of the risk management and internal control
systems. The minutes of the Audit Committee meetings of the Board are tabled at the meetings of the Board of Directors of the bank on a
periodic basis.
e) Self-assessment of anti-fraud internal controls is carried out on a semi-annual basis and is sent to Bangladesh Bank, as per requirements of
DOS Circular Letter No. 10, dated 09 May 2017, issued by Bangladesh Bank.
f) In assessing the internal control system, identified officers of the bank continued to review and update all procedures and controls that are
connected with significant accounts and disclosures of the financial statements of the bank.
I. Information and communication technology (ICT) security
BRAC Bank is dedicated to provide high-quality service and banking security. The bank has an ICT security strategy for cyber security and ICT risk
mitigation, in accordance with the Bangladesh Bank ICT guidelines stated in BRPD circular no. 14 dated 23 October 2005 regarding “Guideline
on Information and Communication Technology for Scheduled Banks”, BRPD circular no. 21 dated 20 May 2010 and BRPD circular no. 09 dated
17 September 2015 and well-established frameworks and international standards and controls, such as COBIT, ITIL, ISO 27001, ISO 18788,
NIST, GDPR, PCI, and SANS.
Bank has implemented multiple robust security solutions to prevent any unwanted/unauthorized/ unauthorized malware attack as well as a zero-
day attack based on static behavior, to detect and prevent data leakage, unauthorized use and transmission of sensitive information, and to
reduce insider threats by detecting the inappropriate actions that can lead to malware infections or data breaches, etc. The Bank has also
implemented a thorough Data Leakage Prevention scheme to safeguard the data of its clients and the bank itself.
Comprehensive annual maintenance contracts (AMCs) and service level agreements (SLAs) were established with partners of major data
center equipment manufacturers to guarantee 24x7 servicing for all active data center and disaster recovery site equipment. With the upgrade
to the monitoring system of the data center and disaster recovery site, the bank is now able to proactively monitor all system parameters and
take appropriate preventative action. Additionally, BRAC Bank has implemented the ITIL framework of best practice recommendations to ensure
complete IT service management.
The BRAC bank believes integrated cyber protection and digital transformation to be essential. As a digitally oriented bank, BRAC Bank has built
a comprehensive cyber security roadmap and is aiming to equip itself with the finest personnel, security solutions, processes, and procedures.
BRAC Bank utilizes premier worldwide external organizations to undertake assessments and regularly assesses its cyber security posture and
future readiness.
J. Implementation of BASEL- III
To cope up with the international best practices and to make the bank’s capital shock absorbent ‘Guidelines on Risk Based Capital Adequacy
(RBCA) for banks was introduced by Bangladesh Bank as per BASEL III. BASEL III framework has three main components referred to as pillars:
i. Pillar I addresses minimum capital requirement;
ii. Pillar II elaborates the process for assessing the overall capital adequacy aligned with risk profile of a bank as well as capital growth plan;
and
iii. Finally, Pillar III gives a framework of public disclosure on the position of a bank's risk profiles, capital adequacy, and risk management
system.
BRAC Bank has fully complied with all the directives provided by the Central bank from time to time, starting from Pillar I, II and III reporting
requirements to periodic Stress Testing activity etc. Formation of BASEL Steering Committee chaired by the Managing Director of the bank helps
us to ensure supreme governance and strict regimentation at execution level. As yet, BRAC bank has been able to successfully implement the
phase in transition arrangement for Basel III, which started from the year 2015 and ended in 2020.
As per RBCA Guideline, all scheduled banks are required to calculate Capital to Risk Weighted Asset Ratio (CRAR) based on ‘Solo’ basis as well
as on ‘Consolidated’ basis. The calculation of CRAR under Basel III has been made as per “Guidelines on Risk Based Capital Adequacy as issued
by Bangladesh Bank vide BRPD Circular no. 18 dated December 21, 2014 and subsequent related circulars of Bangladesh Bank.
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BRAC Bank Limited
K. Disclosure on country risk exposure

Country risk refers to the possibility that a foreign obligator may be incapable or unwilling to fulfill his obligations due to country specific
economic, political, social ecological conditions. This may include the consequences of exchange control, currency devaluation, official
government actions or any significant socio-political changes in the country where placements, lending and investments made. Major categories
of country risk comprises of sovereign risk, contagion risk, currency risk, indirect country risk, macroeconomic risk and transfer risk.
BRAC Bank Limited manages and monitor its country risk exposure in accordance with the guidelines issued by Bangladesh Bank in its BRPD
circular number 07 circulated on April 13, 2021. In compliance with this regulatory guideline, bank has assessed its position and found banks’
net funded exposure to a single country is below 2% of its total asset. Hence there is no additional provision/capital requirement for exposure to
any single country.
L. Disclosure on credit rating information
In compliance with Bangladesh Bank’s BRPD circular No. 06, dated July 05, 2006, and with a view to assure investors and other stakeholders of
the sustainable operating positions of the bank, while also safeguarding stakeholder interests, BRAC Bank is subject to ratings assessment by
reputed credit rating agencies. The summary of Bank's credit rating as of 31 December 2022 is presented below:
Rating agency Long-term rating Short-term rating Outlook Valid up to
Credit Rating Agency of Bangladesh (CRAB) AAA ST-1 Stable 30 June 2023
Credit Rating Information and Services Ltd (CRISL) AA+ ST-1 Stable 02 July 2023
Emerging Credit Rating Ltd (ECRL) AA+ ST-1 Stable 30 June 2023
S&P global Ratings B+ B Stable November, 2022
Moody's Ba3 NP Stable September, 2022
3.9 Director’s and management's responsibilities on statement
The Board of Directors and managements take responsibility for the preparation and presentation of these financial statements.
3.10 Approval of the financial statements
The financial statements have been approved by the Board of Directors on 11 April 2023.
3.11 General
a) Figures appearing in the financial statements have been rounded-off to the nearest Taka.
b) Figures of previous year have been rearranged, wherever considered necessary, to conform with the current year's presentation.
c) The expenses, irrespective of capital or revenue in nature, accrued/due but not paid have been provided for in the books of accounts.
d) The expenses include VAT charges on respective services or goods received.
47
Amount in Taka
Consolidated BRAC Bank Limited
Particulars Note
2022 2021 2022 2021
4 Cash
Cash in hand (Including foreign currency) 4.1 11,918,067,777 9,207,161,626 11,822,688,624 8,424,680,663
Balance with Bangladesh Bank and its agent bank(s)
(Including foreign currency) 4.2 19,953,525,473 14,252,262,804 19,953,525,473 14,252,262,804
31,871,593,250 23,459,424,430 31,776,214,097 22,676,943,467
4.1 Cash in hand (Including foreign currency)
Local currency 11,836,218,828 9,166,408,109 11,740,839,675 8,383,927,146
Foreign currency 81,848,949 40,753,517 81,848,949 40,753,517
11,918,067,777 9,207,161,626 11,822,688,624 8,424,680,663
4.2 Balance with Bangladesh Bank and its agent bank(s)
Local currency 17,384,764,667 12,208,257,526 17,384,764,667 12,208,257,526
Foreign currency 1,611,159,007 961,504,172 1,611,159,007 961,504,172
18,995,923,674 13,169,761,698 18,995,923,674 13,169,761,698
Sonali Bank as an agent of Bangladesh Bank (local currency) 957,601,799 1,082,501,106 957,601,799 1,082,501,106
19,953,525,473 14,252,262,804 19,953,525,473 14,252,262,804
4.3 Cash reserve ratio (CRR) (Bank only)

As per section 33 of Bank Company Act, 1991 (amended up to 2013), MPD circular No. 03 dated 09 April 2020 for Domestic Banking Operation (DBO) & BRPD circular No. 31 dated 18 June 2020 for
Offshore Banking Operation (OBO) issued by Bangladesh Bank, BRAC Bank Limited has been maintaining 3.5% & 1.5% CRR on daily basis and 4.0% & 2.0% on bi-weekly basis for DBO & OBO
respectively. CRR requirement is calculated on the basis of weekly average total demand and time liabilities (ATDTL) of a base month which is two months back of the reporting month (i.e. CRR of
December 2022 is maintained on the basis of weekly ATDTL of October 2022), according to DOS Circular No. 1 & 26 and BRPD circular No. 31 issued on 19 January 2014, 19 August 2019 and 18 June
2020 respectively for both DBO & OBO.
Daily basis
Reserves maintained by the bank as at 31 December are as follows:
Average total demand and time liabilities of October 2022 and October 2021
DBU 377,372,496,754 280,299,190,703
OBU 31,435,723,645 16,755,464,795
408,808,220,399 297,054,655,498
Required reserve
DBU (2022: 3.5% and 2021: 3.5%) 13,208,037,386 9,810,471,675
OBU (2022: 1.5% and 2021: 1.5%) 471,535,855 251,331,972
13,679,573,241 10,061,803,647
Actual reserve maintained as per Bangladesh Bank statement 18,014,672,220 12,027,375,845
Surplus 4,335,098,979 1,965,572,198
48
Amount in Taka
Particulars Note
2022 2021 2022 2021
Bi-weekly basis
The Bank maintained excess cash reserve of Tk. 4,461,126,945 against minimum requirement of 4.0% & 2.0% (of ATDTL) for DBO & OBO on bi-weekly basis which is the summation of excess cash
reserve maintained over required in the last fortnight (bi-week) of 2022.
4.4 Statutory liquidity ratio (SLR) (Bank only)
As per section 33 of the Bank Company Act 1991 (amended up to 2013) & MPD circular no. 2 dated 10 December 2013 issued by Bangladesh Bank (effective from 1 February 2014), BRAC Bank Limited
has been maintaining 13% SLR on weekly average total demand and time liabilities (ATDTL) of a base month which is two months back of the reporting month (i.e. SLR of December 2022 is based on
weekly ATDTL of October 2022), according to DOS Circular No. 1 & 26 and BRPD circular No. 31 issued on 19 January 2014, 19 August 2019 and 18 June 2020 respectively for both DBO & OBO.
Required reserve (13% of ATDTL) 53,145,068,652 38,617,105,215

Actual reserve maintained (2022: 17.54%, 2021: 18.19%) 4.4.1 71,708,187,223 54,038,211,717
Surplus 18,563,118,571 15,421,106,502
4.4.1 Actual reserve maintained
Cash in hand 11,822,688,624 8,424,680,663
Balance with Sonali Bank as per statement 956,771,049 1,081,433,955
Daily excess reserve 2,291,057,877 480,298,921
Un-encumbered approved securities (HFT) 27,931,292,483 16,203,146,653
Un-encumbered approved securities (HTM) 28,704,849,290 27,847,370,725
Un-encumbered approved securities (other eligible) 1,527,900 1,280,800
71,708,187,223 54,038,211,717
5 Balance with other Banks and Financial Institutions
Inside Bangladesh 5.1 47,797,240,230 70,561,465,538 11,127,982,840 12,261,365,946
Outside Bangladesh 5.2 5,154,104,047 7,699,847,372 5,127,551,884 7,619,585,199
52,951,344,277 78,261,312,910 16,255,534,724 19,880,951,145
5.1 Balance inside Bangladesh
In current deposit accounts with:
Banks 17,894,986,491 15,137,298,752 127,982,840 121,365,946
Less: Inter unit/company elimination 3,743,224,457 3,578,641,104 - -
5.1.1 14,151,762,034 11,558,657,648 127,982,840 121,365,946
In fixed deposit accounts with:
Banks 32,060,644,035 57,278,619,910 7,300,000,000 5,200,000,000
Non-banking financial institutions (NBFIs) 5.1.1 3,700,000,000 6,940,000,000 3,700,000,000 6,940,000,000
35,760,644,035 64,218,619,910 11,000,000,000 12,140,000,000
33,645,478,196 59,002,807,890 11,000,000,000 12,140,000,000
Total balance at the end of the year 47,797,240,230 70,561,465,538 11,127,982,840 12,261,365,946
49
Amount in Taka
Particulars Note
2022 2021 2022 2021
5.1.1 Balance with other banks and financial institutions (Inside Bangladesh)
Current accounts
Standard Chartered Bank 164,681,276 697,558,859 34,701,716 62,953,505
Southeast Bank Limited 213,395,231 234,305,990 - -
Al-Arafa Islami Bank Limited - 253,887 - -
Jamuna Bank Limited 646,577,801 241,354,134 - 23,314
Prime Bank Limited 2,000,553,679 9,230,839 544,797 9,071,179
NRB Global Bank Limited 1,200,000 1,000,000 1,200,000 1,000,000
Midland Bank Limited 14,753,454 1,593,920 1,500,000 1,500,000
Mutual Trust Bank Limited 361,222,986 3,413,896,870 - -
Pubali Bank Limited 284,810,139 122,888,233 8,400,689 8,515,281
Janata Bank Limited 607,165 3,379,141 599,333 2,211,029
Bangladesh Krishi Bank Limited 36,252,238 7,427,580 36,252,238 6,334,880
The City Bank Limited 1,409,005,698 2,059,742,754 214,674 216,451
Agrani Bank Limited 25,137,755 10,550,205 4,418,575 5,330,389
Islami Bank Bangladesh Limited 114,723,914 4,035,199 435,579 470,174
United Commercial Bank Limited 1,780,889,910 918,964,790 201,488 202,805
National Bank Limited 297,736 3,018,628 297,736 305,559
Sonali Bank Limited 125,005,940 244,447,395 5,781,430 2,137,294
Dutch Bangla Bank Limited 11,486,431 2,106,776 11,486,431 2,106,776
IFIC Bank Limited 1,980,619 - - -
Rupali Bank Limited 9,219,683 2,031,388 425,233 403,045
Social Islami Bank Limited 1,213,865 1,133,586 - -
First Security Islami Bank Limited 5,031,001 4,895,934 3,599,617 3,544,921
EXIM Bank Limited 11,281,895 12,273,490 11,281,895 11,222,970
BASIC Bank Limited 837,662 814,470 837,662 814,470
Bank Asia Limited 1,624,782 7,416,397 - -
Standard Bank Limited 502,149 843,731 500,000 -
Meghna Bank Limited - 1,473,335 - -
One Bank Limited 1,066,909,962 1,591,498,158 2,370,212 68,369
Mercantile Bank Limited 1,165,240,429 386,036,905 2,433,535 2,433,535
Union Bank Limited 500,000 500,000 500,000 500,000
Trust Bank Limited 301,149,089 62,653,151 - -
Eastern Bank Limited 2,122,017,483 1,053,264,735 - -
Dhaka Bank Limited 1,121,797,710 334,393,959 - -
NCC Bank Limited 1,147,004,493 116,770,312 - -
Habib Bank Limited 8,208 2,311 - -
50
Amount in Taka
Particulars Note
2022 2021 2022 2021
NRB Commercial Bank Limited 525,119 522,131 - -
NRB Bank Limited 9,022 9,712 - -
The Premier Bank Limited 1,131,603 - - -
AB Bank Limited 1,382,163 1,301,813 - -
Uttara Bank Limited 1,415,982 1,336,589 - -
Allied Bank Limited 377,762 399,608 - -
Security deposit to bank by BRAC Sajaan Exchange Ltd - 3,330,733 - -
14,151,762,034 11,558,657,648 127,982,840 121,365,946
Fixed deposit with banks
Southeast Bank Limited - 1,000,000,000 - -
Mutual Trust Bank Limited 3,100,000,000 - - -
The City Bank Limited - 4,000,000,000 - -
NCC Bank Limited 8,010,000,000 1,710,000,000 3,000,000,000 1,700,000,000
Jamuna Bank Limited 114,208,772 3,009,481,081 - 2,000,000,000
Dhaka Bank Limited - 500,000,000 - -
United Commercial Bank Limited 3,600,000,000 6,000,000,000 2,000,000,000 -
Mercantile Bank Limited 5,578,267,327 3,073,467,327 1,500,000,000 -
Standard Chartered Bank 30,083,669 29,544,482 - -
Prime Bank Limited - 2,000,000,000 - -
Standard Bank Limited 800,000,000 1,500,000,000 800,000,000 1,500,000,000
Eastern Bank Limited 200,000,000 - - -
Janata Bank Limited - 7,840,000,000 - -
Sonali Bank Limited 1,000,000,000 13,150,000,000 - -
Pubali Bank Limited 1,000,000,000 -
Agrani Bank Limited - 8,240,000,000 - -
Trust Bank Limited 6,502,000,000 - - -
Padma Bank Limited 10,918,428 10,315,000 - -
29,945,478,196 52,062,807,890 7,300,000,000 5,200,000,000
Fixed deposit with financial institutions
Industrial and Infrastructure Development Finance Co. Limited - 140,000,000 - 140,000,000
United Finance Limited 700,000,000 800,000,000 700,000,000 800,000,000
IPDC Finance Limited 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000
Delta Brac Housing Finance Corporation Limited - 3,000,000,000 - 3,000,000,000
3,700,000,000 6,940,000,000 3,700,000,000 6,940,000,000
33,645,478,196 59,002,807,890 11,000,000,000 12,140,000,000
47,797,240,230 70,561,465,538 11,127,982,840 12,261,365,946
There are some unreconciled entries as on 31 December 2022 and status of unreconciled entries has been presented in Annexure-B-2.
51
Amount in Taka
Particulars Note
2022 2021 2022 2021
5.2 Balance outside Bangladesh
On shore balance 5.2.1 10,300,711,807 13,827,605,643 10,274,159,644 13,747,343,470
Off shore balance 5.2.1 2,382,125,360 5,974,658,657 2,382,125,360 5,974,658,657
12,682,837,167 19,802,264,300 12,656,285,004 19,722,002,127
Less: On shore to BBL off-shore placement 7,528,733,120 12,102,416,928 7,528,733,120 12,102,416,928
5,154,104,047 7,699,847,372 5,127,551,884 7,619,585,199
5.2.1 Balance with other banks and financial institutions (outside Bangladesh)
On shore balance
Standard Chartered Bank-New York, USA 648,185,631 497,936,217 648,185,631 497,936,217
Standard Chartered Bank, United Kingdom 107,923,960 16,027,822 107,923,960 16,027,822
Standard Chartered Bank, Frankfurt, Germany 368,010,970 14,323,040 368,010,970 14,323,040
Mashreq Bank, New York, USA 149,848,892 69,942,687 149,848,892 69,942,687
Bank of Tokyo Mitsubishi 20,512,994 5,975,580 20,512,994 5,975,580
ICICI Bank Limited, Mumbai, India 74,637,602 6,962,245 74,637,602 6,962,245
Zuercher Kantonal Bank, Switzerland 13,630,753 3,721,299 13,630,753 3,721,299
Commerz Bank AG, Germany (USD) 6,466,957 1,908,554 6,466,957 1,908,554
Commerz Bank AG, Germany (EURO) 14,920,292 (72,805,071) 14,920,292 (72,805,071)
Commerz Bank, Frankfurt, Germany (GBP) 6,254 5,815 6,254 5,815
JP Morgan Chase Bank, New York, USA 711,997,619 331,450,001 711,997,619 331,450,001
HDFC Bank Limited, India 257,249,753 19,459,599 257,249,753 19,459,599
Habib Metro Bank Limited - 1,790,293 - 1,790,293
JP Morgan Chase Bank, Sydney (AUD) 8,273,641 605,425,151 8,273,641 605,425,151
AB Bank Limited, Mumbai, India 44,940,238 16,637,248 44,940,238 16,637,248
AXIS Bank Limited 57,087,322 44,326,693 57,087,322 44,326,693
Abu Dhabi Commercial Bank (AED) 5,194,973 6,196,415 5,194,973 6,196,415
Kookmin Bank, Seoul, South Korea (USD) 6,039,326 6,187,529 6,039,326 6,187,529
Citi Bank N.A., New York, USA 41,089,752 24,844,680 41,089,752 24,844,680
Shanghai Pudong Development Bank Co. Ltd, China (CNY) 2,011,473 813,173 2,011,473 813,173
DBS Bank Ltd, Singapore, SGD 17,357,195 13,486,513 17,357,195 13,486,513
Punjab National Bank, Kolkata (USD) 115,867,928 30,311,059 115,867,928 30,311,059
Al Rajhi Bank, Riyadh (SAR) 3,187,340 - 3,187,340 -
Meezan Bank Limited, Gtb Karachi, ACU (USD) 70,985,659 - 70,985,659 -
Balance with different banks maintained by BRAC SAAJAN Exchange Ltd. 26,552,163 80,262,173 - -
2,771,978,687 1,725,188,715 2,745,426,524 1,644,926,542
Add: On shore to off shore placement 7,528,733,120 12,102,416,928 7,528,733,120 12,102,416,928
Total on shore balance 10,300,711,807 13,827,605,643 10,274,159,644 13,747,343,470
52
Amount in Taka
Particulars Note
2022 2021 2022 2021
Off shore balance
JP Morgan Chase Bank, New York 702,418,166 138,374,290 702,418,166 138,374,290
JP Morgan AG, Frankfurt, Germany 25,564,908 425,313 25,564,908 425,313
JP Morgan Chase Bank, NA, London 1,390,286 1,459,054 1,390,286 1,459,054
BBL OBU to Other Bank OBU placement 1,652,752,000 5,834,400,000 1,652,752,000 5,834,400,000
Total off shore balance 2,382,125,360 5,974,658,657 2,382,125,360 5,974,658,657
12,682,837,167 19,802,264,300 12,656,285,004 19,722,002,127
Less: On shore to BBL off-shore placement 7,528,733,120 12,102,416,928 7,528,733,120 12,102,416,928
5,154,104,047 7,699,847,372 5,127,551,884 7,619,585,199
There are some unreconciled entries as on 31 December 2022 and status of unreconciled entries has been presented in Annexure-B-1 and detail balance has been presented in Annexure - C except BBL
OBU to Other Bank OBU placement.
5.3 Maturity grouping of balance with other banks and financial institutions
On Demand - - 3,602,782,724 -
Up to 1 month 13,157,601,136 6,339,852,686 2,402,752,000 6,548,951,145
More than 1 month but not more than 3 months 24,335,099,107 21,968,040,315 10,250,000,000 8,432,000,000
More than 3 months but not more than 1 year 15,458,644,034 49,953,419,909 - 4,900,000,000
More than 1 year but not more than 5 years - - - -
More than 5 years - - - -
52,951,344,277 78,261,312,910 16,255,534,724 19,880,951,145
6 Money at call on short notice
IDLC Finance Limited 3,000,000,000 3,500,000,000 3,000,000,000 3,500,000,000
Delta BRAC Housing Finance Corporation Limited 3,000,000,000 - 3,000,000,000 -
Pubali Bank Limited 826,376,000 - 826,376,000 -
6,826,376,000 3,500,000,000 6,826,376,000 3,500,000,000
7 Investments
Government 7.1 107,319,008,486 60,998,642,835 56,637,669,673 44,051,798,178
Others 7.2 9,232,985,372 9,069,950,469 7,650,012,591 7,539,016,664
116,551,993,858 70,068,593,304 64,287,682,264 51,590,814,842
7.1 Government (investment in Govt. securities)
Treasury bills 7.1.1 502,645,248 1,658,322,369 502,645,248 79,924,246
Treasury bonds 7.1.2 106,814,835,338 59,339,039,666 56,133,496,525 43,970,593,132
Prize bonds 1,527,900 1,280,800 1,527,900 1,280,800
107,319,008,486 60,998,642,835 56,637,669,673 44,051,798,178
53
Amount in Taka
Particulars Note
2022 2021 2022 2021
7.1.1 Treasury bills
Treasury bills (91 Days) - 79,924,246 - 79,924,246
Treasury bills (182 Days) - 1,479,534,000 - -
Treasury bills (364 Days) 502,645,248 98,864,123 502,645,248 -
502,645,248 1,658,322,369 502,645,248 79,924,246
7.1.2 Treasury Bonds
Treasury bonds (2 years BGTB) 15,126,121,903 13,314,480,669 7,037,969,509 -
Treasury bonds (5 years BGTB) 26,035,244,848 27,236,823,583 24,087,842,247 27,230,297,168
Reverse REPO 12,491,315,400 1,116,989,193 12,491,315,400 -
106,814,835,338 59,339,039,666 56,133,496,525 43,970,593,132
7.1.3 BB category wise investment
Held for trading (HFT) 27,931,292,483 16,203,146,653 27,931,292,483 16,203,146,653
Held to maturity (HTM) 79,386,188,103 44,794,215,382 28,704,849,290 27,847,370,725
Other securities 1,527,900 1,280,800 1,527,900 1,280,800
107,319,008,486 60,998,642,835 56,637,669,673 44,051,798,178
7.2 Others (investment in other than Govt. securities)
Corporate bonds- unquoted and quoted 7.2.1 2,480,000,000 2,900,000,000 2,480,000,000 2,890,000,000
Ordinary shares and mutual funds (MFs) - unquoted and quoted 7.2.2 6,750,485,372 6,165,950,469 5,167,512,591 4,645,016,664
Preference shares 7.2.3 2,500,000 4,000,000 2,500,000 4,000,000
9,232,985,372 9,069,950,469 7,650,012,591 7,539,016,664
* Investment in shares, mutual funds and preference shares are detailed in Annexure-D.
7.2.1 Corporate bonds- unquoted and quoted
Unquoted
North West Power Generation Company Limited Coupon Bearing Bond 1,200,000,000 1,500,000,000 1,200,000,000 1,500,000,000
Jamuna Bank II Floating Rate Subordinated Bond 180,000,000 270,000,000 180,000,000 270,000,000
Bank Asia Floating Rate Subordinated Bond - 20,000,000 - 20,000,000
EBL Floating Rate Subordinated Bond - 20,000,000 - 20,000,000
Prime Bank Floating Rate Subordinated Bond - 20,000,000 - 20,000,000
EXIM Bank Mudaraba Subordinated Floating Rate Bond - 50,000,000 - 50,000,000
54
Amount in Taka
Particulars Note
2022 2021 2022 2021
AB Bank Floating Rate Subordinated Bond II - 60,000,000 - 60,000,000
MTBL Floating Rate Subordinated Bond - 50,000,000 - 50,000,000
MTBL Floating Rate Subordinated Bond IV 400,000,000 400,000,000 400,000,000 400,000,000
Meghna Bank 1st Subordinate Coupon Bearing Bond 200,000,000 - 200,000,000 -
1,980,000,000 2,390,000,000 1,980,000,000 2,390,000,000
Quoted
Beximco Green Sukuk Al Istisna'a - 10,000,000 - -
Ashuganj Power Station Company Limited Bond 500,000,000 500,000,000 500,000,000 500,000,000
500,000,000 510,000,000 500,000,000 500,000,000
2,480,000,000 2,900,000,000 2,480,000,000 2,890,000,000
7.2.2 Ordinary shares and mutual funds (MFs) - unquoted and quoted
Unquoted
Industrial and Infrastructure Development Finance Company Ltd (IIDFC) 29,683,820 29,683,820 29,683,820 29,683,820
Bangladesh Rating Agency Limited (BDRAL) 10,671,700 10,671,700 10,671,700 10,671,700
Central Depository Bangladesh Limited (CDBL) 6,277,770 6,277,770 6,277,770 6,277,770
Investment in non-publicly traded mutual fund 441,872,220 249,686,370 441,872,220 249,686,370
Investment in share - IPO 46,637,763 - - -
Investment in DSE & CSE 96,986,595 96,986,595 - -
632,129,868 393,306,255 488,505,510 296,319,660
Quoted
Investment in secondary market 6,118,355,504 5,772,644,214 4,679,007,081 4,348,697,004
6,118,355,504 5,772,644,214 4,679,007,081 4,348,697,004
6,750,485,372 6,165,950,469 5,167,512,591 4,645,016,664
7.2.3 Preference shares

Union Capital Preference Share 2,500,000 4,000,000 2,500,000 4,000,000
2,500,000 4,000,000 2,500,000 4,000,000
7.3 Maturity wise grouping of investment

On demand - - 5,417,713,320 -
Up to 1 month 14,188,455,784 2,710,582,737 7,284,756,278 5,297,464
More than 1 month but not more than 3 months 1,579,926,666 220,724,640 1,579,926,666 200,000,000
More than 3 months but not more than 1 year 14,536,811,309 18,305,723,722 13,033,778,937 6,210,894,725
More than 1 year but not more than 5 years 36,654,461,496 33,494,806,504 28,024,952,278 31,885,306,402
More than 5 years 49,592,338,603 15,336,755,701 8,946,554,785 13,289,316,251
116,551,993,858 70,068,593,304 64,287,682,264 51,590,814,842
55
Amount in Taka
Particulars Note
2022 2021 2022 2021
8 Loans and advances
Loans, cash credit, overdrafts etc. 8.1.1 222,711,877,598 169,128,372,833 221,303,533,974 168,205,415,381
Small and medium enterprises 8.1.2 187,247,111,913 150,749,009,625 187,247,111,913 150,749,009,625
Bills purchased and discounted* 8.2 2,125,761,073 2,257,805,981 2,125,761,073 2,257,805,981
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
* Bills purchased and discounted excludes bills purchased and discounted of small and medium enterprises (SME).
8.1.1 Loans, cash credit, overdrafts etc.
Overdrafts 14,264,660,532 9,386,377,592 14,264,660,532 9,386,377,592
Demand loans 93,550,846,726 63,339,447,043 93,550,846,726 63,339,447,043
Term loans 101,066,162,683 84,980,045,030 101,066,162,683 84,980,045,030
Lease receivables 488,267,689 823,850,563 488,267,689 823,850,563
Credit Cards 10,794,068,205 8,562,449,791 10,794,068,205 8,562,449,791
Staff loans 1,152,911,527 1,123,591,696 1,139,528,139 1,113,245,362
Margin loan 2,383,856,084 1,769,581,139 - -
223,700,773,446 169,985,342,854 221,303,533,974 168,205,415,381
Less: Inter company elimination 988,895,848 856,970,021 - -
222,711,877,598 169,128,372,833 221,303,533,974 168,205,415,381
8.1.2 Small and medium enterprises
Overdrafts 12,992,885,904 17,716,943,831 12,992,885,904 17,716,943,831
Demand loans 13,789,378,536 13,336,489,437 13,789,378,536 13,336,489,437
Term loans 160,407,248,749 119,647,429,292 160,407,248,749 119,647,429,292
Lease receivables 3,904,457 12,493,658 3,904,457 12,493,658
Bills purchased and discounted (SME) 53,694,267 35,653,407 53,694,267 35,653,407
187,247,111,913 150,749,009,625 187,247,111,913 150,749,009,625
8.2 Bills purchased and discounted
Bills purchased and discounted (except SME) 2,125,761,073 2,257,805,981 2,125,761,073 2,257,805,981
Bills purchased and discounted (SME) 53,694,267 35,653,407 53,694,267 35,653,407
2,179,455,340 2,293,459,388 2,179,455,340 2,293,459,388
8.3 Net loans and advances
Gross loans and advances 412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
Less: Interest suspense 17.6 1,710,681,546 1,637,871,114 1,710,681,546 1,637,871,114
Less: Provision for loans and advances including Covid special provision 17.1 15,386,996,797 13,997,832,683 14,175,161,027 12,778,727,514
394,987,072,241 306,499,484,642 394,790,564,387 306,795,632,359
56
Amount in Taka
Particulars Note
2022 2021 2022 2021
8.4 Loans and advances under the following broad categories
Inside Bangladesh:
Loans 384,754,942,424 294,765,610,883 383,346,598,800 293,842,653,431
Cash credit - - - -
Overdrafts 27,257,546,436 27,103,321,423 27,257,546,436 27,103,321,423
412,012,488,860 321,868,932,306 410,604,145,236 320,945,974,854
Outside Bangladesh:
Loans - - - -
Cash credits - - - -
Overdrafts 72,261,724 266,256,133 72,261,724 266,256,133
72,261,724 266,256,133 72,261,724 266,256,133
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
8.5 Geographical location wise portfolio grouping
Inside Bangladesh: Rural
Dhaka Division 21,801,834,985 16,286,585,281 21,801,834,985 16,286,585,281
Chattogram Division 7,748,731,551 5,710,367,078 7,748,731,551 5,710,367,078
Khulna Division 2,135,336,810 1,867,179,063 2,135,336,810 1,867,179,063
Sylhet Division 684,612,772 587,922,421 684,612,772 587,922,421
Barisal Division 2,676,094,860 2,252,683,323 2,676,094,860 2,252,683,323
Rajshahi Division - - - -
Rangpur Division - - - -
Mymensingh Division - - - -
35,046,610,978 26,704,737,166 35,046,610,978 26,704,737,166
Inside Bangladesh: Urban
Dhaka Division 271,970,483,868 206,468,770,801 270,562,140,244 210,003,581,273
Chattogram Division 36,572,748,273 29,398,804,991 36,572,748,273 29,933,898,705
Khulna Division 19,220,934,984 14,920,391,316 19,220,934,984 14,920,391,316
Sylhet Division 6,997,893,761 6,052,596,788 6,997,893,761 5,517,503,075
Barisal Division 17,773,535,883 3,754,903,491 17,773,535,883 14,860,502,458
Rajshahi Division 6,891,514,015 20,018,904,916 6,891,514,015 5,263,466,418
Rangpur Division 12,180,549,220 6,403,619,148 12,180,549,220 9,309,338,283
Mymensingh Division 5,358,217,878 8,146,203,689 5,358,217,878 4,432,556,160
376,965,877,882 295,164,195,140 375,557,534,258 294,241,237,688
Outside Bangladesh 72,261,724 266,256,133 72,261,724 266,256,133
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
57
Amount in Taka
Particulars Note
2022 2021 2022 2021
8.6 Loans and advances on the basis of significant concentration
8.6.1 Loans and advances to directors, executives and others
Directors, subsidiaries and others 989,873,937 857,164,160 989,873,937 857,164,160
Staffs:
Managing Director and CEO - - - -
Senior executives 127,336,202 117,266,663 113,952,814 106,920,329
Other executives and staffs 1,025,575,325 1,006,325,033 1,025,575,325 1,006,325,033
1,152,911,527 1,123,591,696 1,139,528,139 1,113,245,362
Industries:
Agro-based 18,197,184,243 19,580,349,837 18,197,184,243 19,580,349,837
Large and medium 96,137,380,399 67,128,717,347 96,137,380,399 67,128,717,347
Small and cottage 28,146,418,322 26,021,968,591 28,146,418,322 26,021,968,591
Service industry 25,376,563,870 14,618,681,406 25,376,563,870 14,618,681,406
167,857,546,834 127,349,717,181 167,857,546,834 127,349,717,181
Agricultural 5,687,724,141 5,753,930,713 5,687,724,141 5,753,930,713
Consumers 75,941,549,558 64,361,156,599 75,941,549,558 64,361,156,599
Trade and commercial 143,656,845,308 106,519,590,246 142,261,885,072 105,606,979,128
Others 16,798,299,279 16,170,037,844 16,798,299,279 16,170,037,844
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
8.6.2 Staff loan
Personal loan 48,030,769 58,119,303 34,647,381 47,772,969
Car and motorcycle loan 567,667,332 547,275,877 567,667,332 547,275,877
House building loan 537,213,426 518,196,516 537,213,426 518,196,516
1,152,911,527 1,123,591,696 1,139,528,139 1,113,245,362
8.7 Overall Sector wise concentration of loans and advance

Agriculture 5,687,724,141 5,753,930,713 5,687,724,141 5,753,930,713
Communication 3,287,943,562 1,925,739,616 3,287,943,562 1,925,739,616
Construction 1,671,888,713 1,137,737,429 1,671,888,713 1,137,737,429
Consumer credit 77,082,055,787 65,474,596,100 77,082,055,787 65,474,596,100
Other manufacturing industries 84,860,249,089 66,934,713,222 84,860,249,089 66,934,713,222
Power, Gas 1,034,096,725 1,160,503,826 1,034,096,725 1,160,503,826
Readymade garments 27,869,772,720 22,844,920,562 27,869,772,720 22,844,920,562
Residential real estate financing 574,576,479 1,077,921,947 574,576,479 1,077,921,947
Ship building 24,825,639,412 17,999,936,722 24,825,639,412 17,999,936,722
58
Amount in Taka
Particulars Note
2022 2021 2022 2021
Service industries 6,489,929,560 4,943,877,117 6,489,929,560 4,943,877,117
Textile 146,335,501,432 106,736,606,921 146,335,501,432 106,736,606,921
Trade service 70,285,749 70,785,749 70,285,749 70,785,749
Others 32,295,087,215 26,073,918,516 30,886,743,591 25,150,961,064
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
8.8 Securities wise loans and advances including bills purchased and discounted
Collateral of moveable/immoveable assets 126,686,442,834 135,307,188,774 126,686,442,834 135,307,188,774
Local banks and financial institutions guarantee - - - -
Government guarantee - - - -
Foreign banks guarantee - - - -
Export documents - - - -
Fixed deposit receipts (FDR) 6,748,674,909 5,791,509,559 6,748,674,909 5,791,509,559
FDR of other banks - - - -
Government bonds - - - -
Personal guarantee and other securities 277,021,246,522 179,969,307,739 277,007,863,134 179,958,961,405
Other securities 1,628,386,319 1,067,182,367 233,426,083 154,571,249
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
8.9 Classified and unclassified loans and advances

Unclassified
Standard (including staff loan) 394,146,614,538 307,143,533,027 393,963,577,819 307,445,882,479
Special Mention Accounts (SMA) 1,444,198,040 1,243,788,089 1,444,198,040 1,243,788,089
395,590,812,578 308,387,321,116 395,407,775,859 308,689,670,568
Classified
Sub-standard 3,376,237,529 2,200,671,339 3,376,237,529 2,200,671,339
Doubtful 2,535,948,774 987,009,923 2,535,948,774 987,009,923
Bad/Loss 10,581,751,703 10,560,186,061 9,356,444,799 9,334,879,157
16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
412,084,750,584 322,135,188,439 410,676,406,961 321,212,230,987
8.9.1 Business segment wise concentration of classified loans and advances/ NPL of the Bank
Corporate 6,621,370,896 6,188,357,727 6,621,370,896 6,188,357,727

Retail 3,119,523,698 3,154,195,395 1,894,216,794 1,928,888,491
Small and medium enterprises 6,753,043,412 4,405,314,201 6,753,043,412 4,405,314,201
16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
59
Amount in Taka
Particulars Note
2022 2021 2022 2021
8.9.2 Sector wise concentration of classified loans and advances/ NPL of the Bank
Agriculture 52,630,207 31,871,445 52,630,207 31,871,445

Communication - 486,924,192 - 486,924,192
Construction 2,497,490 - 2,497,490 -
Consumer credit 1,894,219,834 1,356,644,787 1,894,219,834 1,356,644,787
Other manufacturing industries 4,515,403,972 2,619,111,630 4,515,403,972 2,619,111,630
Power, Gas - - - -
Readymade garments 1,793,914,272 2,370,137,460 1,793,914,272 2,370,137,460
Residential real estate financing - - - -
Ship building - 70,785,749 - 70,785,749
Service industries 316,325,077 176,784,009 316,325,077 176,784,009
Textile 805,904,806 1,093,866,163 805,904,806 1,093,866,163
Trade service 6,671,088,591 4,944,211,307 5,445,781,687 3,718,904,403
Others 441,953,757 597,530,580 441,953,757 597,530,580
16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
8.9.3 Movements of classified loans and advances
Opening balance 13,747,867,323 9,233,853,039 12,522,560,419 8,008,546,135
Additions during the year 6,324,236,743 6,875,879,905 6,324,236,743 6,875,879,905
Released during the year (3,578,166,060) (2,361,865,621) (3,578,166,060) (2,361,865,621)
16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
8.9.4 Loan type wise classified loans and advances
Overdraft 2,280,501,223 1,439,279,855 2,280,501,223 1,439,279,855
Demand loan 3,301,376,505 3,440,164,860 3,301,376,505 3,440,164,860
Term loan 9,129,361,188 7,042,575,016 9,129,361,188 7,042,575,016
Lease finance 29,873,780 27,804,883 29,873,780 27,804,883
Credit cards 527,518,406 572,735,805 527,518,406 572,735,805
Margin loan 1,225,306,904 1,225,306,904 - -
16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
60
Amount in Taka
Particulars Note
2022 2021 2022 2021
8.10 Details of large loan (Standalone basis)
Large loan clients are those to whom loans and advances sanctioned are 10% or more of the total regulatory capital of the Bank. Total capital of the Bank was Taka 49,118,601,214 as at 31 December
2022 and taka 44,131,714,067 as at 31 December 2021. Client wise details of large loans have been presented in below:
Number of clients 22
Amount of outstanding loans and advances 79,698,345,561
Amount of classified loans and advances NIL
Client wise break-up is as follows:
SL Name of clients Funded Non-funded Total Outstanding
1 Meghna group of industries 2,233,750,906 4,686,834,775 6,920,585,681
2 BSRM group 5,733,020,639 683,562,443 6,416,583,082
3 Summit group 3,919,864,694 2,445,333,880 6,365,198,574
4 Abul Khair group 2,603,843,863 3,383,574,207 5,987,418,070
5 City group 2,952,999,915 2,249,590,927 5,202,590,842
6 PRAN-RFL group 4,178,180,074 479,259,185 4,657,439,259
7 Renata group 4,199,383,041 138,210,223 4,337,593,264
8 Walton group 3,860,443,442 136,684,425 3,997,127,868
9 Akij group 3,529,105,292 295,666,550 3,824,771,842
10 Bitopi group 2,789,779,566 680,690,898 3,470,470,464
11 Veon group 1,513,770,480 1,890,105,041 3,403,875,520
12 Samuda group 2,179,325,467 1,201,814,338 3,381,139,805
13 Confidence group 2,001,184,438 1,352,534,532 3,353,718,971
14 Urmi group 1,497,418,180 1,156,821,337 2,654,239,518
15 Meghna cycle group 2,052,455,417 420,108,586 2,472,564,003
16 Mir group 1,777,447,327 614,087,775 2,391,535,102
17 Badsha group 1,750,332,666 625,188,588 2,375,521,254
18 BRAC group 1,834,228,860 224,936,135 2,059,164,995
19 Square group 735,295,244 1,322,575,503 2,057,870,747
20 Robi Axiata 1,589,064,624 459,827,419 2,048,892,043
21 Yunusco group 1,464,201,374 485,584,663 1,949,786,037
22 Nesco-Desco group - 370,258,620 370,258,620
Grand Total 54,395,095,508 25,303,250,051 79,698,345,561
Note: Large exposures has been calculated on the basis of BRPD Circular No 01, dated 16 January 2022.
61
8.11 Particulars of required provisions for loans and advances (Bank only)
Amount in Taka
Outstanding loans and Percentage (%) of Required provision Required provision
Status Base for provision
advances 2022 required provision 2022 2021
Unclassified
All unclassified loans (Other than Small and Medium Enterprise
Financing, Consumer Financing, BHs/MBs/SDs, Housing and 138,616,008,372 138,566,463,509 1%** 1,778,829,266 1,331,178,040
loans for professional*)
Small and Medium Enterprise Financing 176,308,310,896 176,308,310,896 0.25% 440,770,777 356,006,759
Loans to BHs/MBs/SDs against share etc.* 1,140,548,317 1,140,548,317 2% 22,810,966 15,806,672
Housing Finance 12,135,153,745 12,135,153,745 1% 121,351,537 129,508,580
Loans for professionals to Set up business (LP) 5,402,713,749 5,402,713,749 2% 108,054,275 105,836,050
Consumer finance 46,213,205,233 46,213,205,233 2% 924,264,105 734,780,715
Consumer finance (Credit Card) 10,266,549,799 10,266,549,799 2% 205,330,996 159,794,280
Short Term Agricultural and Micro Credit 4,185,757,607 4,185,757,607 1% 41,857,576 39,409,917
Staff Loan 1,139,528,139 - 1% - -
395,407,775,857 394,218,702,856 3,643,269,498 2,872,321,013
Classified - Specific provision
Sub-standard 3,376,237,529 2,422,283,006 20%*** 439,033,298 210,607,228
Doubtful 2,535,948,774 1,943,776,800 50%*** 499,174,067 145,090,096
Bad/Loss 9,356,444,799 6,954,244,541 100%**** 7,065,798,541 7,627,363,819
15,268,631,102 11,320,304,347 8,004,005,906 7,983,061,143
410,676,406,959 405,539,007,203
Special General Provision Covid-19
Special general provision Covid-19 for 2020 1% 385,747,960 564,532,639
Special general provision Covid-19 for 2021 1.5%, 2% 179,414,701 219,674,585
Special general provision Covid-19 for 2022 1% & 2% 17,320,997 -
582,483,659 784,207,224
Total required provision for loans and advances 12,229,759,063 11,639,589,380
Total provision maintained (Note 17.1) 14,175,161,027 12,778,727,514
Excess provision over minimum required provision prescribed by Bangladesh Bank 1,945,401,964 1,139,138,134
* BHs = Brokerage Houses, MBs = Merchant Banks, SDs = stock dealers against shares
** For rescheduled loans, 50% and 100% provision has been made as per NOC circular
*** For small, micro & cottage enterprises under CMSME financing provision requirement is 5% for sub-standard and 20% for doubtful classification as per BRPD circular
**** Note that provision for bad and loss includes a provision of BDT 111,554,000 for bank guarantee as per BB audit advice in 2021
62
Amount in Taka
2022 2021
Particulars
Taka Taka
8.12 Particulars of loans and advances (Bank only)
i) Loans considered good in respect of which Bank is fully secured 82,497,853,549 86,137,720,340
ii) Loans considered good against which Bank holds no security other than the debtor's personal guarantee 327,039,025,272 233,961,265,285
iii) Loans considered good secured by the personal undertakings of one or more parties in addition to the personal guarantee of the debtor 1,139,528,139 1,113,245,362
iv) Loans adversely classified; provision not maintained there against - -
410,676,406,960 321,212,230,987
v) Loans due by directors or officers of the banking company or any of these either separately or jointly with any other persons 1,140,506,228 1,113,439,501
vi) Loans due from companies or firms in which the directors of the bank have interested as directors, partners or managing agents or in case of 988,895,848 856,970,022
private companies as members
vii) Maximum total amount of advance including temporary advance made at any time during the year to directors or managers or officers of the 1,140,506,228 1,113,439,501
banking companies or any of them either separately or jointly with any other person
viii) Maximum total amount of advances, including temporary advances granted during the year to the companies or firms in which the directors of 988,895,848 856,970,022
the banking company have interest as directors, partners or managing agents or in case of private companies, as members
ix) Due from banking companies - -
x) Information in respect of classified loans and advances
a) Classified loan on which interest has not been charged to income 15,268,631,102 12,522,560,419
i) Increase/decrease of provision (specific) 440,870,144 1,466,974,668
ii) Amount of loans written off 2,067,242,232 1,634,560,945
iii) Amount recovered against loan previously written off 809,572,845 707,517,594
b) Amount of provision kept against loan classified as "bad/loss" on the date of preparing the balance sheet 7,065,798,541 7,627,363,819
c) Interest creditable to the Interest Suspense account 1,408,486,946 1,533,746,003
xi) Cumulative amount of the written off loan
Opening balance 22,743,200,267 21,108,639,322
Amount written off during the year 2,067,242,232 1,634,560,945
24,810,442,499 22,743,200,267
The amount of written off loans for which law suits have been filed 22,675,202,492 21,652,814,618
63
In Taka
Particulars Note
2022 2021 2022 2021
8.13 Write off of loans and advances (net basis)
Balance at the beginning of the year 12,508,427,034 11,646,828,978 12,508,427,034 11,646,828,978
Add: Write off during the year 2,067,242,232 1,634,560,945 2,067,242,232 1,634,560,945
Less: written-off recovery and interest waiver 868,939,265 772,962,889 868,939,265 772,962,889
Balance at the end of the year 13,706,730,001 12,508,427,034 13,706,730,001 12,508,427,034
8.14 Bill Purchased and Discounted under the following broad categories
Inside Bangladesh 2,179,455,340 2,293,459,388 2,179,455,340 2,293,459,388
Outside Bangladesh - - - -
2,179,455,340 2,293,459,388 2,179,455,340 2,293,459,388
8.15 Maturity wise grouping of loans and advances
On demand 37,177,621,706 26,883,955,082 1,884,609,633 27,740,925,103
Up to 1 month - - 36,281,907,921 -
Not more than 3 months 67,860,734,336 50,194,511,523 67,860,734,336 50,194,511,523
More than 5 years 20,617,776,328 14,104,819,266 20,617,776,328 14,104,819,266
412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
8.16 Maturity wise grouping of lease receivables including SME
On demand 913,172 1,151,132 913,172 1,151,132
Up to 1 month 512,992 - 512,992 -
Not more than 3 months 1,757,045 2,344,909 1,757,045 2,344,909
More than 3 months but not more than 1 Year 6,740,340 18,873,511 6,740,340 18,873,511
More than 1 year but not more than 5 years 482,248,597 475,272,980 482,248,597 475,272,980
More than 5 years - 338,701,689 - 338,701,689
492,172,146 836,344,221 492,172,146 836,344,221
8.17 Maturity wise grouping of bill purchased and discounted

On Demand 9,568,998 - 9,568,998 -
Payable within 1 month 1,088,965,356 1,096,020,362 1,088,965,356 1,096,020,362
Over 1 month but less than 3 months 956,729,734 1,036,935,079 956,729,734 1,036,935,079
Over 3 months but less than 6 months 124,191,252 132,174,913 124,191,252 132,174,913
6 months or more - 28,329,034 - 28,329,034
2,179,455,340 2,293,459,388 2,179,455,340 2,293,459,388
64
In Taka
Particulars Note
2022 2021 2022 2021
9 Fixed assets including premises, furniture and fixtures
Land 527,275,400 527,275,400 527,275,400 527,275,400
Office floor space 20,855,926 20,855,926 4,034,334 4,034,334
Furniture and fixture 2,387,318,002 2,336,543,136 2,170,822,095 2,140,914,382
Office equipment 1,473,696,734 1,450,379,835 1,361,168,512 1,344,953,601
IT hardwares 7,029,432,768 6,284,258,630 3,275,504,031 3,049,688,043
Motor vehicles 650,117,297 504,714,769 422,497,790 354,296,880
Leasehold improvements 157,107,776 134,421,114 - -
Right of use assets (ROU) as per IFRS 16 7,299,267,882 6,448,373,021 6,103,024,179 5,489,602,469
Capital expenditure work in progress 584,054,423 585,568,883 207,119,223 251,206,514
IT software (finite useful lives) 7,542,139,410 6,081,922,651 2,800,445,366 2,322,117,221
Total cost 27,671,265,618 24,374,313,365 16,871,890,930 15,484,088,844
Accumulated depreciation and amortisation 14,207,751,270 11,540,143,941 9,092,544,237 8,029,221,445
Written down value at 31 December 13,463,514,348 12,834,169,424 7,779,346,693 7,454,867,399
* Fixed assets schedules on standalone basis are shown in Annexure-E.
10 Other assets
Income generating
Interest receivables 10.1 3,811,701,206 2,721,178,635 3,811,701,206 2,721,178,635
Dividend receivables 69,353,683 35,919,830 69,353,683 35,919,830
Investment in subsidiary 10.2 - - 13,571,306,097 13,161,378,451
Investment/carrying value in associates 10.3 21,206,835 21,115,234 21,206,835 21,115,234
Investment in swift share 8,083,464 8,083,464 8,083,464 8,083,464
Prepaid interest expenses on IFFD 2 24,511,806 2 24,511,806
Receivables against sanchayapatra 22,879,838 44,502,037 22,879,838 44,502,037
Balance with BRAC EPL Stock Brokerage Limited 2,351,718 1,166,738 2,351,718 1,166,738
Non- Income generating
Stock of stamps 49,971,414 48,826,086 49,971,414 48,826,086
Stock of security stationery 40,311,581 47,369,961 40,311,581 47,369,961
Stock of printing stationery 14,557,854 12,007,770 14,557,854 12,007,770
Advance to staff 7,503,770 6,617,457 7,503,770 6,617,457
Advance to supplier 30,635,256 30,451,912 9,170,157 24,933,886
Advance value added tax 5,858,631 4,370,000 5,858,631 4,370,000
Advance to SME unit offices 1,308,690 1,308,690 1,308,690 1,308,690
Advance against office rent 72,000,795 68,234,617 72,000,795 68,234,617
Advance security deposit 16,571,559 13,362,635 12,103,651 8,894,727
Receivables from biTS 154,857,249 187,859,621 154,857,249 187,859,621
65
In Taka
Particulars Note
2022 2021 2022 2021
Deferred revenue expenditure 231,241,555 173,250,448 231,241,555 173,250,448
Deferred tax asset 10.4 6,411,981,091 5,233,012,588 4,769,561,708 4,147,255,591
Receivable settlement account-OBU/DBU - 11,166 - 11,166
Net plan assets - employees' gratuity fund 10.5 132,156,493 127,281,040 132,156,493 127,281,040
Other receivables 10.6 2,618,589,473 1,887,698,086 2,618,589,473 1,887,698,086
Other assets of subsidiaries 10.7 7,080,720,520 5,524,084,643 - -
20,803,842,677 16,222,224,464 25,626,075,864 22,763,775,341
10.1 Interest receivables

Receivable against Govt. securities 925,810,324 978,845,897 925,810,324 978,845,897
Receivable against other securities 49,041,453 50,972,387 49,041,453 50,972,387
Receivable against balance with other bank 153,927,383 82,740,585 153,927,383 82,740,585
Receivable against loans and advances 2,682,922,046 1,608,619,766 2,682,922,046 1,608,619,766
3,811,701,206 2,721,178,635 3,811,701,206 2,721,178,635
10.2 Investment in subsidiaries
BRAC EPL Investments Limited 1,301,639,222 1,036,320,904
BRAC EPL Stock Brokerage Limited 1,311,371,003 1,241,795,091
bKash Limited 10,937,169,476 10,874,512,125
BRAC Saajan Exchange Limited 21,126,396 8,750,331
13,571,306,097 13,161,378,451
10.3 Investment/carrying value in associates

BRAC IT Services Limited 10.3.1 21,206,835 21,115,234 21,206,835 21,115,234
21,206,835 21,115,234 21,206,835 21,115,234
10.3.1 Carrying value of investment in associates

BRAC IT Services Limited
Opening balance/fair value of residual interest retained 21,115,234 -
Gain/(loss) on disposal/loss of shares in associates (4,768,581) 17,373,182
Share of profit/(loss) of equity in associate company 4,860,182 3,742,052
21,206,835 21,115,234
66
In Taka
Particulars Note
2022 2021 2022 2021
10.4 Deferred tax asset/(liability) (Bank only)
Deductible/(Taxable) Deferred Tax Asset/
Particulars Accounting base Tax base Applicable tax rate
temporary difference (Liability)
Balance as at 31 December 2022
Loan loss provision including Covid-19 special provision (Note -17.1) 10,907,648,940 - 10,907,648,940 37.50% 4,090,368,353
and QJ general provision of BDT 722,066,972
Actuarial valuation measurement loss 158,308,084 - 158,308,084 37.50% 59,365,532
Provision against capital market (Note -17.4) 34,119,549 - 34,119,549 10.00% 3,411,955
Fixed assets except RoU (Annexure - E) 2,858,164,885 4,060,036,190 1,201,871,305 37.50% 450,701,739
Right of use assets (RoU) as per IFRS 17 (Annexure - E) 4,183,776,896 764,211,113 (3,419,565,783) 37.50% (1,282,337,168)
Leased Liability as per IFRS 16 (Note - 17) 3,861,470,125 - 3,861,470,125 37.50% 1,448,051,297
Deferred tax asset (a) 4,769,561,708
Deferred tax liability arises due to actuarial valuation gain - - - 37.50% -
Deferred tax liability arises from fair value gain as per IFRS 9 8,992,839,090 - (8,992,839,090) 15.00% (1,348,925,863)
Interest receivable from treasury bills and bonds (Note -10.1) 925,810,324 - (925,810,324) 37.50% (347,178,872)
Dividend receivables (Note -10) - - - 20.00% -
Deferred tax liability (b) (1,696,104,735)
Net deferred tax asset at 31 December 2022 (a+b) 3,073,456,973
Increase of deferred tax asset recognised in profit and loss account as income 562,940,585
Decrease of deferred tax liability recognised in profit and loss account as income 27,072,306
Net Deferred tax income recognised in profit and loss account during the year ended 31 December 2022 590,012,891
Net Deferred tax liability recognised in equity during the year ended 31 December 2022 (42,621,486)
Balance as at 31 December 2021
Loan loss provision including Covid-19 special provision (Note -17.1) 9,744,711,824 - 9,744,711,824 37.50% 3,654,266,934
Provision against capital market (Note -17.4) 13,580,119 - 13,580,119 10.00% 1,358,012
Fixed assets except RoU (Annexure - E) 2,522,794,574 3,532,771,605 1,009,977,031 37.50% 378,741,387
Right of use assets (RoU) as per IFRS 17 (Annexure - E) 4,150,429,766 847,913,185 (3,302,516,581) 37.50% (1,238,443,718)
Leased Liability as per IFRS 16 (Note -17) 3,603,554,603 - 3,603,554,603 37.50% 1,351,332,976
Deferred tax asset (a) 4,147,255,591
Deferred tax liability arises due to actuarial valuation gain 8,221,604 - (8,221,604) 37.50% (3,083,101)
Deferred tax liability arises from fair value gain as per IFRS 9 8,688,141,840 - (8,688,141,840) 15.00% (1,303,221,276)
Interest receivable from treasury bills and bonds (Note -10.1) 978,845,897 - (978,845,897) 37.50% (367,067,212)
Dividend receivables (Note -10) 35,919,830 - (35,919,830) 20.00% (7,183,966)
Deferred tax liability (b) (1,680,555,555)
Net deferred tax asset at 31 December 2021 (a+b) 2,466,700,036
67
In Taka
Particulars Note
2022 2021 2022 2021
Increase of deferred tax asset recognised in profit and loss account as income 948,468,648
Decrease of deferred tax liability recognised in profit and loss account as income 176,309,838
Net Deferred tax income recognised in profit and loss account during the year ended 31 December 2021 1,124,778,486
Net Deferred tax liability recognised in equity during the year ended 31 December 2021 (1,016,784,141)
10.4.1 Recoverability/adjustment/reversal of deferred tax

Deferred tax on Specific provision on loans and advances
Specific provisions for loans are not tax allowable under local tax regulations. So, when calculating taxable income, the loan loss provision charged to the profit and loss account is added back to
income. The loan recovery or write-off, however, will be accepted by the tax office as a legitimate tax expense. The Bank will either make a recovery or write off the loans at some point in the future;
thus, this item only makes a transitory effect. According to IAS 12, the Bank recognizes the deferred tax on this particular provision, creating a deductible temporary difference to the degree that it can
be applied as a credit. Once the underlying bad debt is either repaid or cancelled, the deferred tax will be reversed.
Deferred tax on Fixed assets including intangible assets
Accounting depreciation is not taken into consideration when determining the tax obligation according to local tax regulations. The tax authorities permit tax depreciation at various rates as per third
schedule of ITO 1984 which is different from accounting depreciation rate in many cases. Hence transitory differences are created due to the varying depreciation rates and methodology against
which the Bank recognises deferred tax. This is a common occurrence since the accounting depreciation rate and the tax depreciation rate differ from one another. The remaining amount of deferred
tax will be released when the assets' useful economic life has passed, though.
Deferred tax on Provision against capital market investment
Capital market-related provisions are not deductible for tax purposes under local tax regulations. As a result, when calculating taxable income, such provision charged to the profit and loss account is
added back to income. The tax office will, however, permit the release or reversal of the provision as an allowable expense through realized gains or losses as a result of the temporary difference that
this item causes. According to IAS 12, the Bank recognizes the deferred tax on such a provision, creating a deductible temporary difference to the extent that it can be applied as a credit against other
liabilities. As soon as the related provision is released or reversed, the deferred tax will also be released.
Deferred tax on Interest receivables on government securities
As per Tax Law, Tax is being paid on BGTB income on a cash basis, whereas the same income is accounted for on an accrual basis in the financial statement. This difference in interest income
recognition has created a temporary difference on which the bank recognized the DT liability on the interest receivable on BGTB in the respective year, which will be reversed upon payment of tax on
cash interest received in the subsequent years.
Deferred tax on Right of use assets (RoU) and lease liabilities as per IFRS 16
According to local tax regulations, lease payments are treated as an allowable expense, while accounting depreciation and interest on RoU assets under IFRS 16 are not. As a result, when calculating
taxable profit, depreciation and interest expense were added back and the amount of the actual lease payment was subtracted. Due to the temporary differences caused by this, deferred tax is
recognized. However, when the assets' economic useful lives are up, the remaining amount of deferred tax will be automatically released.
Deferred tax assets arising from the provision on loan loss provision will recovered at the time of written off of classified loan. Deferred tax on provision for investment in capital market will be
recovered when the loss be realized and deferred tax on Right of Use assets under IFRS 16 will be adjusted on termination of lease contracts.
10.5 Net plan assets - employees' gratuity fund
Fair value of plan assets 10.5.1 2,741,694,323 2,278,452,754 2,140,086,266 1,749,085,730
Less: Defined benefit obligation 10.5.2 2,609,537,830 2,151,171,714 2,007,929,773 1,621,804,690
132,156,493 127,281,040 132,156,493 127,281,040
68
In Taka
Particulars Note
2022 2021 2022 2021
10.5.1 Fair value of plan assets - gratuity fund
Fair value of plan assets as on 1 January 2,278,452,754 1,968,963,855 1,749,085,730 1,511,837,864
Interest income on plan assets 157,417,716 136,065,408 157,417,716 136,065,408
Actual employer contributions 481,503,712 249,642,432 409,262,679 177,401,399
Actual net benefits payments (156,555,251) (90,128,124) (156,555,251) (90,128,124)
Remeasurement gain/(losses) on plan assets (19,124,608) 13,909,183 (19,124,608) 13,909,183
Fair value of plan assets as on 31 December 2,741,694,323 2,278,452,754 2,140,086,266 1,749,085,730
10.5.2 Defined benefit obligation - gratuity fund
Defined benefit obligation as on 1 January 2,151,171,714 1,620,587,088 1,621,804,690 1,163,461,097
Current service cost 409,186,202 358,220,441 249,312,832 198,347,071
Past service cost due to amendment of gratuity benefits 145,962,422 - 145,962,422 -
Interest cost - 104,711,499 - 104,711,499
Actual net benefits payments (156,555,251) (90,128,124) (156,555,251) (90,128,124)
Remeasurement (gain)/loss 59,772,743 157,780,810 147,405,080 245,413,147
Defined benefit obligation as on 31 December 2,609,537,830 2,151,171,714 2,007,929,773 1,621,804,690
10.5.3 Remeasurements gain/(loss) of defined benefits liabilities/assets
Opening balance (133,663,763) (76,606,123) 5,138,502 149,828,479
Remeasurement gain/(losses) on plan assets (19,124,608) 13,909,183 (19,124,608) 13,909,183
Remeasurement gain/(losses) on defined benefit obligation (59,772,743) (157,780,810) (147,405,080) (245,413,147)
(212,561,114) (220,477,750) (161,391,186) (81,675,485)
Less: Deferred tax (expense)/income 62,448,633 86,813,987 62,448,633 86,813,987
(150,112,481) (133,663,763) (98,942,553) 5,138,502
* Remeasurement gain/(loss) has been recognised as per actuarial valuation report 2022.
10.6 Other Receivables
Receivable against remittance 27,644,923 11,559,766 27,644,923 11,559,766
Receivable against DD 189,500,000 133,000,000 189,500,000 133,000,000
Receivable against cards 111,440,750 64,353,917 111,440,750 64,353,917
Receivable from merchant 286,156,041 241,107,676 286,156,041 241,107,676
Receivable from partners 2,679,383 220,116 2,679,383 220,116
Receivable from co-brand ATM 27,020,242 27,020,242 27,020,242 27,020,242
Receivable against fraud and forgery/protested bill 119,040,216 117,873,609 119,040,216 117,873,609
Receivable from NPS 178,437,000 103,551,000 178,437,000 103,551,000
Sundry debtors* 1,471,753,211 1,150,197,828 1,471,753,211 1,150,197,828
69
In Taka
Particulars Note
2022 2021 2022 2021
Receivable from BACH 5,000,000 5,000,000 5,000,000 5,000,000
Coupon interest adjustment 181,239,015 13,627,536 181,239,015 13,627,536
REPO interest expenditure - (1,119,412) - (1,119,412)
Interest rate swap 18,678,692 21,305,808 18,678,692 21,305,808
2,618,589,473 1,887,698,086 2,618,589,473 1,887,698,086
*In compliance with FRC notification no. 179/FRC/FRM/Notification/2020/2, we have already adjusted the forfeited fund previously distributed among active members of provident fund for the
period from 2015 to 2021 as per the existing Fund Rules. Additionally, we have recognized other receivable of BDT 1,287,595 under sundry debtors for the forfeited fund for 2022.
10.7 Other assets of subsidiaries
BRAC EPL Investments Limited 88,878,423 65,146,951
BRAC EPL Stock Brokerage Limited 123,946,712 80,943,352
bKash Limited 6,919,169,697 5,344,095,037
7,164,685,861 5,551,157,205
Less: Inter company transactions:
BRAC Bank Limited 15,056,402 22,664,005
bKash Limited 68,908,939 4,408,557
83,965,341 27,072,562
7,080,720,520 5,524,084,643
11 Non-banking assets Possession date
M/S Macca And Modina Store 16 January 2017 1,200,000 1,200,000 1,200,000 1,200,000
M/S. Akash Auto Mobile 11 June 2018 3,041,700 3,041,700 3,041,700 3,041,700
M/S Shawan Enterprise 12 January 2021 300,000 300,000 300,000 300,000
M/S SB Variety Store* 12 October 2022 6,800,000 - 6,800,000 -
11,341,700 4,541,700 11,341,700 4,541,700
*The Bank has been awarded ownership of the mortgaged property M/S SB Variety Store, verdict of the honourable Artharin Court of Jamalpur under Section 33(7) of Artharin Adalat Ain 2003 and
reported as non-banking assets in accordance with Bank Companies Act 1991 and BRPD circular no. 14 of 2003. The value of the non-banking assets has been determined on the basis of valuation
report of an independent valuer.
12 Goodwill
(i) BRAC EPL Investments Limited 246,289,821 246,289,821
(ii) BRAC EPL Stock Brokerage Limited 1,126,273,572 1,126,273,572
(iii) BRAC Saajan Exchange Limited* - 54,905,518
Total 1,372,563,393 1,427,468,911
*Please refer to note-38 impairment of goodwill for relevant explanation
70
In Taka
Particulars Note
2022 2021 2022 2021
13 Borrowings from other banks, financial institutions and agents
Borrowings inside Bangladesh 13.1 207,944,839 429,000,000 - 429,000,000
Borrowings outside Bangladesh 13.2 38,700,865,687 23,721,953,707 38,685,377,271 23,705,564,025
38,908,810,526 24,150,953,707 38,685,377,271 24,134,564,025
13.1 Borrowings inside Bangladesh
Eastern Bank Limited 207,944,839 - - -
Woori Bank - 429,000,000 - 429,000,000
207,944,839 429,000,000 - 429,000,000
13.2 Borrowings outside Bangladesh
State Bank of India, Hong Kong 2,479,128,000 858,000,000 2,479,128,000 858,000,000
Nabil Bank Limited, Nepal 639,026,231 300,300,000 639,026,231 300,300,000
HDFC Bank Limited, India 1,549,455,000 858,000,000 1,549,455,000 858,000,000
Standard Chartered Bank, Singapore 516,485,000 2,368,080,000 516,485,000 2,368,080,000
Asian Development Bank 3,098,910,000 2,574,000,000 3,098,910,000 2,574,000,000
Caixabank S.A. 6,920,899,000 561,185,625 6,920,899,000 561,185,625
The National Bank of Ras Al-Khaimah, UAE 5,164,850,000 1,716,000,000 5,164,850,000 1,716,000,000
Abu Dhabi Commercial Bank, UAE 1,549,455,000 2,574,000,000 1,549,455,000 2,574,000,000
CDC Group Plc, United Kingdom 886,288,260 1,471,298,400 886,288,260 1,471,298,400
International Finance Corporation (IFC), USA 3,098,910,000 4,719,000,000 3,098,910,000 4,719,000,000
JP Morgan Chase Bank N.A. Singapore 5,061,553,000 1,287,000,000 5,061,553,000 1,287,000,000
Bank Muscat Saog, Oman 1,756,049,000 - 1,756,049,000 -
Cargill Financial Services International 3,098,910,000 - 3,098,910,000 -
Commercial Bank of Qatar 1,032,970,000 - 1,032,970,000 -
Mizuho Bank Ltd, Singapore 1,032,970,000 - 1,032,970,000 -
Yes Bank, India 799,518,780 - 799,518,780 -
DBS Bank, Singapore - 2,402,400,000 - 2,402,400,000
Axis Bank Limited - 858,000,000 - 858,000,000
Siddhartha Bank Limited, Kathmandu - 300,300,000 - 300,300,000
First Abu Dhabi Bank PJSC, UAE - 858,000,000 - 858,000,000
Millennium Bank, Portugal 15,488,416 16,389,682 - -
38,700,865,687 23,721,953,707 38,685,377,271 23,705,564,025
13.3 Security against borrowings from other banks, financial institutions and agents:
Secured (Treasury bills) - - - -
Unsecured 38,908,810,526 24,150,953,707 38,685,377,271 24,134,564,025
38,908,810,526 24,150,953,707 38,685,377,271 24,134,564,025
71
In Taka
Particulars Note
2022 2021 2022 2021
13.4 Disclosure regarding REPO

Disclosure regarding REPO transactions of the Bank are given as per Bangladesh Bank DOS Circular No. 6 dated 15 July 2010.
(a) (i) Disclosure regarding outstanding Repo as on 31 December 2022
Amount (1st leg cash Amount (1st leg cash
consideration) consideration)
Counter party name SL. no Agreement date Reversal date
outstanding on 31 outstanding on 31
December 2022 December 2021
Standard Chartered Bank Dhaka i December 29, 2021 January 2, 2022 Nil 1,593,212,388
Standard Chartered Bank Dhaka ii December 30, 2021 January 2, 2022 Nil 7,757,656,399
United Commercial Bank Limited iii December 30, 2021 January 4, 2022 Nil 927,638,685
The City Bank Limited iv December 30, 2021 January 6, 2022 Nil 1,024,745,040
Prime Bank Limited v December 29, 2021 January 3, 2022 Nil 1,946,907,218
Prime Bank Limited vi December 30, 2021 January 3, 2022 Nil 442,388,250
Agrani Bank Limited vii December 26, 2022 January 1, 2023 5,525,476,218 Nil
Agrani Bank Limited viii December 27, 2022 January 3, 2023 3,064,628,767 Nil
Janata Bank Limited ix December 28, 2022 January 4, 2023 4,079,793,226 Nil
12,669,898,211 13,692,547,980
(a) (ii) Disclosure regarding outstanding Reverse Repo as on 31 December 2022
Amount (1st leg cash Amount (1st leg cash
Counter party name SL. no Agreement Date Reversal Date
consideration) consideration)
- -
- -
(b) Disclosure regarding overall transaction of Repo and Reverse repo during the year 2022
Minimum outstanding Maximum outstanding Daily average Daily average
Particulars during the year 2022 during the year 2022 outstanding during the outstanding during the
year 2022 year 2021
Securities sold under repo:
i) with Bangladesh Bank 732,877,208 1,464,473,775 9,268,855 -
ii) with other banks & FIs 487,504,500 9,354,162,154 2,138,552,906 2,082,542,687
Securities purchased under reverse repo:
i) with Bangladesh Bank - - - -
ii) with other banks & FIs 97,025,710 10,003,649,860 1,480,047,089 64,700,456
72
In Taka
Particulars Note
2022 2021 2022 2021
13.5 Maturity wise grouping of borrowing from other bank and financial institutions
Repayable on demand 6,445,003,282 1,233,701,684 7,446,298,531 2,102,100,000
More than 1 year but not more than 5 years - 736,164,000 - 736,164,000
More than 5 years - - - -
38,908,810,526 24,150,953,707 38,685,377,271 24,134,564,025
14 Borrowings from central bank & government agencies

BB - Export development fund (EDF) 16,168,162,980 9,124,444,403 16,168,162,980 9,124,444,403
SME Foundation pre finance 506,077,187 817,222,000 506,077,187 817,222,000
BB - Long term financing facility (LTFF) 785,064,454 763,079,166 785,064,454 763,079,166
BB - Green transformation fund (GTF) 232,733,347 261,070,057 232,733,347 261,070,057
BB - Stimulus fund 55,370,628 387,594,399 55,370,628 387,594,399
BB - Working capital stimulus fund 1,514,040,573 528,491,391 1,514,040,573 528,491,391
BB - PSC stimulus package 1,367,527,000 45,242,000 1,367,527,000 45,242,000
BB - Refinancing for green initiatives 30,000,000 40,000,000 30,000,000 40,000,000
BB - SME re-finance 21,370,475,640 11,108,860,408 21,370,475,640 11,108,860,408
Joyeeta foundation pre or re-finance 155,050,000 99,900,000 155,050,000 99,900,000
42,184,501,809 23,175,903,824 42,184,501,809 23,175,903,824
14.1 Maturity wise grouping of Borrowings from central bank & government agencies
More than 5 years 45,647,064 763,079,166 45,647,064 763,079,166
42,184,501,809 23,175,903,824 42,184,501,809 23,175,903,824
15 Affordable housing bond

In 2022, upon approval from Bangladesh Securities & Exchange Commission (BSEC) and permission from Bangladesh Bank, BRAC Bank issued unsecured Affordable Housing Bond amounting BDT
4,751,000,000. The bond has been fully subscribed by International Finance Corporation (IFC). The raised fund will be utilized to provide affordable housing loans to lower and middle income group at
a highest interest rate of 7.50% or as revised by Bangladesh Bank time to time.
73
In Taka
Particulars Note
2022 2021 2022 2021
16 Deposits and other accounts
Current accounts and other accounts 16.1 187,855,608,325 164,417,743,536 123,148,401,399 109,462,945,554
Bills payable 16.2 1,739,503,614 2,367,889,416 1,739,503,614 2,367,889,416
Savings deposits 16.3 71,890,957,598 68,334,576,200 71,890,957,598 68,334,576,200
Term deposits* 16.4 182,973,780,522 127,956,809,129 185,088,946,361 133,172,621,149
Other deposits 16.5 2,598,966,270 1,252,882,201 2,598,966,270 1,252,882,201
447,058,816,329 364,329,900,482 384,466,775,242 314,590,914,520
* Term deposits include the deposit pension scheme (DPS).

16.1 Current accounts and other accounts
Local currency 183,410,331,638 161,837,234,177 114,959,900,255 103,303,795,091
Foreign currencies 8,188,501,144 6,159,150,463 8,188,501,144 6,159,150,463
191,598,832,782 167,996,384,640 123,148,401,399 109,462,945,554
187,855,608,325 164,417,743,536 123,148,401,399 109,462,945,554
16.1.1 Current accounts and other accounts
Current deposits 177,062,146,540 155,015,630,031 108,611,715,157 96,482,190,945
Special notice deposit 14,536,686,242 12,980,754,609 14,536,686,242 12,980,754,609
191,598,832,782 167,996,384,640 123,148,401,399 109,462,945,554
187,855,608,325 164,417,743,536 123,148,401,399 109,462,945,554
16.2 Bills payable

Local currency 1,709,235,613 2,164,588,843 1,709,235,613 2,164,588,843
Foreign currencies 30,268,001 203,300,573 30,268,001 203,300,573
1,739,503,614 2,367,889,416 1,739,503,614 2,367,889,416
16.3 Savings deposits

Local currency 71,890,957,598 68,334,576,200 71,890,957,598 68,334,576,200
Foreign currencies - - - -
71,890,957,598 68,334,576,200 71,890,957,598 68,334,576,200
74
In Taka
Particulars Note
2022 2021 2022 2021
16.4 Term deposits
Local currency 181,477,648,780 131,121,074,245 181,477,648,780 131,121,074,245
Foreign currencies 3,611,297,581 2,051,546,904 3,611,297,581 2,051,546,904
185,088,946,361 133,172,621,149 185,088,946,361 133,172,621,149
182,973,780,522 127,956,809,129 185,088,946,361 133,172,621,149
16.5 Other deposits

Local currency 16.5.1 2,591,975,775 1,247,004,101 2,591,975,775 1,247,004,101
Foreign currencies 16.5.2 6,990,495 5,878,100 6,990,495 5,878,100
2,598,966,270 1,252,882,201 2,598,966,270 1,252,882,201
Less: Inter unit/company elimination - - - -
2,598,966,270 1,252,882,201 2,598,966,270 1,252,882,201
16.5.1 Other local currency deposits

Security deposits 813,000 800,000 813,000 800,000
Security deposit from retail loan client - 7,355,223 - 7,355,223
Sundry deposit 16.5.1.1 2,591,162,775 1,238,848,878 2,591,162,775 1,238,848,878
2,591,975,775 1,247,004,101 2,591,975,775 1,247,004,101
16.5.1.1 Sundry deposit
Lease deposits - 934,785 - 934,785
Payable to NPS 2,368,101,519 1,000,841,185 2,368,101,519 1,000,841,185
EFTN and BACH adjustments account 129,174,085 201,401,857 129,174,085 201,401,857
Payable against customers, loan account and others 93,887,171 35,671,051 93,887,171 35,671,051
2,591,162,775 1,238,848,878 2,591,162,775 1,238,848,878
16.5.2 Other foreign currency deposits

Proceeds awaiting for remittance (BTB LC) 6,990,495 5,878,100 6,990,495 5,878,100
Remittance awaiting for disposal (RAD) - - - -
6,990,495 5,878,100 6,990,495 5,878,100
16.6 Deposits concentration
Deposits from banks-inside Bangladesh 16.6.1 416,079,447 3,943,113,946 416,079,447 3,943,113,946
Other than banks 446,642,736,882 360,386,786,536 384,050,695,795 310,647,800,574
447,058,816,329 364,329,900,482 384,466,775,242 314,590,914,520
75
In Taka
Particulars Note
2022 2021 2022 2021
16.6.1 Deposits from banks inside Bangladesh
Current deposits:
NRB Bank Limited 1,346,966 1,436,920 1,346,966 1,436,920
Islami Bank Bangladesh Limited 440,548 - 440,548 -
One Bank Limited 977,208 151,297 977,208 151,297
Meghna Bank Limited 409,935,258 535,996 409,935,258 535,996
412,699,980 2,124,213 412,699,980 2,124,213
Special notice deposit:
Dutch-Bangla Bank Mobile Banking-Rocket 3,379,467 40,989,733 3,379,467 40,989,733
Term deposits from Banks:
State Bank of India - 400,000,000 - 400,000,000
Habib Bank Limited - 500,000,000 - 500,000,000
Pubali Bank Limited - 3,000,000,000 - 3,000,000,000
- 3,900,000,000 - 3,900,000,000
Total deposits from banks 416,079,447 3,943,113,946 416,079,447 3,943,113,946
16.7 Payable on demand and time deposit

i) Demand deposit
Current deposits 165,130,420,939 145,277,838,464 100,423,214,013 90,323,040,482
Saving deposits (9% of total saving deposits) 6,470,186,184 6,150,111,858 6,470,186,184 6,150,111,858
Foreign currency deposits 8,195,491,639 6,165,028,563 8,195,491,639 6,165,028,563
Sundry deposits 2,591,162,775 1,238,848,878 2,591,162,775 1,238,848,878
Bills payable 1,739,503,614 2,367,889,416 1,739,503,614 2,367,889,416
184,126,765,151 161,199,717,179 119,419,558,225 106,244,919,197
ii) Time deposit
Saving deposits (91% of total saving deposits) 65,420,771,414 62,184,464,342 65,420,771,414 62,184,464,342
Foreign currency deposits 3,611,297,581 2,051,546,904 3,611,297,581 2,051,546,904
Term deposits 160,951,254,291 109,066,283,138 163,066,420,130 114,282,095,158
Deposit pension schemes (DPS) 18,411,228,650 16,838,979,087 18,411,228,650 16,838,979,087
Special notice deposit 14,536,686,242 12,980,754,609 14,536,686,242 12,980,754,609
Security deposits 813,000 8,155,223 813,000 8,155,223
262,932,051,178 203,130,183,303 265,047,217,017 208,345,995,323
447,058,816,329 364,329,900,482 384,466,775,242 314,590,914,520
76
In Taka
Particulars Note
2022 2021 2022 2021
16.8 Maturity wise grouping of deposits and other accounts
Repayable within 1 month 39,478,409,574 29,812,031,680 33,816,689,751 26,823,992,430
Over 1 months but within 6 months 123,692,377,070 78,146,789,069 123,692,377,070 78,146,789,069
Over 6 months but within 1 year 126,570,721,489 111,672,492,397 69,640,400,225 64,921,545,685
Over 1 year but within 5 years 141,455,809,394 130,364,719,339 141,455,809,394 130,364,719,339
Over 5 years but within 10 years 2,971,721,054 3,655,601,415 2,971,721,054 3,655,601,415
Over 10 years - - - -
Total balance 447,058,816,329 364,329,900,482 384,466,775,242 314,590,914,520
Unclaimed deposits for 10 years or more 57,875,419 50,123,305 57,875,419 50,123,305
As per Bank Company Act 1991, Section 35 and BB circular letter no. BRPD 10 dated 12 September 2018, if any money or valuable asset (except deposits from Government, minor or litigation) is
unclaimed for ten years or above as of 31 December every year, a three months’ notice will be given to depositors concerned. Based on the response from the concerned depositors by following three
months, amount will be paid to them otherwise unclaimed deposit will be deposited to Bangladesh Bank by 30 April of the following year. We reported BDT BDT 57,875,419 as 10 years and above
unclaimed deposit amount as on 31 December 2022 (cut off basis) to Bangladesh Bank.
17 Other liabilities
Provision for loans and advances 17.1 14,602,789,573 13,213,625,459 13,390,953,803 11,994,520,290
Special general provision Covid-19 17.1 784,207,224 784,207,224 784,207,224 784,207,224
Provision for interest receivable from loan 17.2 20,676,127 13,457,003 20,676,127 13,457,003
Provisions for off balance sheet Items 17.3 911,486,554 706,746,134 911,486,554 706,746,134
Provision for diminution in value of investments 17.4 34,119,549 13,580,119 34,119,549 13,580,119
Provision for other assets 17.5 247,263,926 234,820,125 247,263,926 234,820,125
Provision against non banking assets (NBA) 6,800,000 - 6,800,000 -
Interest suspense 17.6 1,710,681,546 1,637,871,114 1,710,681,546 1,637,871,114
Withholding tax payable 17.7 546,837,799 201,214,386 546,837,799 201,214,386
VAT payable 17.8 231,322,683 208,608,833 231,322,683 208,608,833
Excise duty payable 329,663,279 262,341,336 329,663,279 262,341,336
Provision for taxation net off AIT 17.9 5,448,621,002 5,920,521,742 4,144,359,024 5,021,558,503
Deferred tax liability 10.4 347,178,871 377,334,278 1,696,104,735 1,680,555,555
Interest payable on borrowings 733,123,758 331,043,315 733,123,758 331,043,315
Accrued expenses 4,781,984,329 5,337,303,430 1,367,743,072 2,108,043,731
CSR Fund (FX gain) 17.14 188,198,573 - 188,198,573 -
Share subscription - IPO (refund warrant) 273,606 229,509 273,606 229,509
Payable to off-shore banking unit 4 - 4 -
Unclaimed and undistributed dividend 17.10 11,588,296 9,676,218 11,588,296 9,676,218
Suppliers payable 162,427,092 125,946,941 162,427,092 125,946,941
Leased liabilities as per IFRS 16 4,465,075,566 4,085,484,681 3,861,470,127 3,603,554,604
77
In Taka
Particulars Note
2022 2021 2022 2021
Payable against exchange houses 60,200 100 60,200 100
Payable against insurances 6,260,997 6,155,625 6,260,997 6,155,625
Payable against proxy account 1,366,816 206,092 1,366,816 206,092
Payable against SWIFT charge 27,144,741 1,716,000 27,144,741 1,716,000
Start-up Fund 17.11 158,509,361 100,877,625 158,509,361 100,877,625
Other payables 17.12 4,188,126,315 3,716,340,999 4,188,126,315 3,716,340,999
Other liabilities of subsidiaries 17.13 2,058,793,026 2,018,766,783 - -
42,004,580,813 39,308,075,071 34,760,769,207 32,763,271,381
17.1 Provision for loans and advances including Covid special provision
A. General provision including Covid special provision
Provisions held at the beginning of the year 3,818,222,914 3,254,158,676 3,818,222,914 3,254,158,676
Add: Transfer from specific provision 210,677,063 64,204,586 210,677,063 64,204,586
Add: Special general provision Covid-19 - 10,077,106 - 10,077,106
Add: Net charge to profit and loss A/C 575,618,832 490,317,074 575,618,832 490,317,074
Add: Exchange difference 169,267,474 (534,528) 169,267,474 (534,528)
Provisions held at the end of the year 4,773,786,283 3,818,222,914 4,773,786,283 3,818,222,914
B. Specific provision
Provisions held at the beginning of the year (i) 10,179,609,769 8,552,594,541 8,960,504,600 7,493,529,932
Less: Transfer to general provision (ii) (210,677,063) (64,204,586) (210,677,063) (64,204,586)
Less: Write off during the year (iii) (1,875,687,554) (1,503,380,807) (1,875,687,554) (1,503,380,807)
Add: Provision charged for the year including special provision Covid-19 (iv) 2,172,220,677 3,178,139,884 2,179,490,076 3,018,099,324
Add: Recovery of written off bad debts (v) 809,572,845 707,517,594 809,572,845 707,517,594
Add: Exchange difference (vi) 347,744,685 16,460,737 347,744,685 16,460,737
Net charge to profit and loss A/C (vii) = (iv)-(v) 1,362,647,832 2,470,622,290 1,369,917,231 2,310,581,730
Provisions held at the end of the year (i+ii+iii+iv+v+vii) 10,613,210,514 10,179,609,769 9,401,374,744 8,960,504,600
Total provision held at the end of the year (A+B) 15,386,996,797 13,997,832,683 14,175,161,027 12,778,727,514
17.2 Provision for interest receivable from loan

Provisions held at the beginning of the year 13,457,003 13,457,003 13,457,003 13,457,003
Add: Net charge to profit and loss A/C 7,219,124 - 7,219,124 -
Provisions held at the end of the year 20,676,127 13,457,003 20,676,127 13,457,003
17.3 Provisions for off balance sheet items

Balance at the beginning of the year 706,746,134 455,246,134 706,746,134 455,246,134
Provision made during the year 204,740,420 251,500,000 204,740,420 251,500,000
Balance at the end of the year 911,486,554 706,746,134 911,486,554 706,746,134
78
In Taka
Particulars Note
2022 2021 2022 2021
17.3.1 Particulars of required provisions for off balance sheet items - general provision (Bank only)
Percentage (%) of Required provision Required provision
Particulars Base for provision
required provision 2022 2021
Acceptances and endorsements (net of UPAS Loans) 46,851,368,815 1% 468,513,688.00 323,280,430
Irrevocable letters of credit 27,451,963,219 1% 274,519,632.00 265,982,034
Letter of guarantees 18,607,062,875 1% 186,070,629.00 117,934,147
Total required provision before considering counter guarantee 929,103,949 707,196,612
Deduction for counter guarantee 17,617,395 3,955,406
Total required provision 911,486,554 703,241,206
Total provision maintained (Note 17.3) 911,486,554 706,746,134
Excess/(short) provision - 3,504,928
17.4 Provision for diminution in value of investments

Balance at the beginning of the year 13,580,119 87,580,119 13,580,119 87,580,119
Provision made/(released) during the year 20,539,430 (74,000,000) 20,539,430 (74,000,000)
Balance at the end of the year 34,119,549 13,580,119 34,119,549 13,580,119
Above provision includes provision for dividend receivable on preference share of BDT 1,250,000.
17.5 Provision for other assets
Provisions held at the beginning of the year 234,820,125 195,208,855 234,820,125 168,102,992
Add: Net movement during the year 12,443,801 39,611,270 12,443,801 66,717,133
Provisions held at the end of the year 247,263,926 234,820,125 247,263,926 234,820,125
17.5.1 Particulars of required provision for other assets (Bank only)
Other assets Required provision 31 Required provision 31
Other asset type Doubtful (50%) Bad/Loss (100%)
balance Dec 2022 Dec 2021
Accrued interest on loans and advances 2,088,565,945 - - - -
Receivables from govt./BB for interest subsidy 565,538,368 - - - -
Accrued interest on investment 1,157,596,892 - 518,135 518,135 -
Dividend receivables 69,353,683 - -
Receivables against sanchayapatra 22,879,838 -
Stock of stamps & stationery 104,840,850 - - - -
Advance to staff & supplier 16,673,927 165,000 2,694,851 2,859,851 -
Deferred revenue expenditure 231,241,555 - -
Advance to SME unit offices 1,308,690 - -
Advance security deposit 84,104,446 781,000 781,000
Advances, receivables and other settlement balances 5,927,047,081 937,674 - 937,674
79
In Taka
Particulars Note
2022 2021 2022 2021
Other receivables 1,406,755,963 639,676 13,669,813 14,309,489
Receivable from partners 2,679,383 - - - -
Receivable from co-brand atm 27,020,242 - 27,020,242 27,020,242 27,020,241
Receivable for fraud and forgery-protested bill 119,040,216 - 119,040,216 119,040,216 117,873,609
Receivables in cash shortage-branch 1,416,050 - 1,416,050 1,416,050 1,324,350
Receivables in cash shortage-atm 2,000 - 2,000 2,000 220,000
Receivable from BBL-RBL atm 5,144,030 - 5,144,030 5,144,030 5,144,030
Receivable from BACH 5,000,000 - - - 5,000,000
Proxy accounts - - - - 4,788,745
Receivables against remittance 27,644,922 - - - 1,600,000
Charge back receivables in suspense-cards - - - - 143,635
Receivable for outstanding priority pass bill payment - - - - 22,276
Receivable from merchant(On US)-cards - - - - 193,925
Receivable for Govt stimulus 127,545,483 - -
Subsidy receivable from BB-financial stimulus fund 2,749,620 - - - -
Unclaimed dividend paid to BSEC 60,840,320 - 60,840,320 60,840,320 60,840,320
Total required provision for other assets 232,869,007 224,171,131
Total provision maintained 247,263,926 234,820,125
Excess/(short) provision 14,394,919 10,648,994
17.6 Interest suspense

Add: Amount transferred to ''interest suspense" account during the year 1,408,486,946 1,533,746,003 1,408,486,946 1,533,746,003
3,046,358,060 2,976,796,063 3,046,358,060 2,976,796,063
Less: Amount recovered and adjusted in ''interest suspense" account during the year 1,144,121,836 1,207,744,812 1,144,121,836 1,207,744,812
Less: Amount written off during the year 191,554,678 131,180,137 191,554,678 131,180,137
17.7 Withholding tax payable
Payable on Interest 324,275,459 81,459,135 324,275,459 81,459,135
Payable (suppliers) 10,450,449 3,669,132 10,450,449 3,669,132
Payable (staff salaries and allowance) 21,993,118 16,461,797 21,993,118 16,461,797
Payable (rent) 4,707,295 4,345,397 4,707,295 4,345,397
Payable (export) 106,535,195 36,596,076 106,535,195 36,596,076
Payable on commission paid 31,152,002 16,259,115 31,152,002 16,259,115
Payable on professional services 8,645,651 10,718,853 8,645,651 10,718,853
Payable on export cash subsidy - 42,474 - 42,474
80
In Taka
Particulars Note
2022 2021 2022 2021
Payable on local LC 297,114 979,909 297,114 979,909
Payable on foreign buyer agent 18,633,996 18,788,738 18,633,996 18,788,738
Freight forward agency commission 731,720 - 731,720 -
Payable on IGW services 3,446,146 859,352 3,446,146 859,352
Payable on others 15,969,654 11,034,408 15,969,654 11,034,408
546,837,799 201,214,386 546,837,799 201,214,386
17.8 VAT Payable

Payable on banking service 78,280,195 82,588,034 78,280,195 82,588,034
Payable - supplier 64,361,016 32,777,748 64,361,016 32,777,748
Payable - rent 13,554,752 12,437,967 13,554,752 12,437,967
Payable - DPDC, DESCO, BPDB & REB 75,126,720 80,805,084 75,126,720 80,805,084
231,322,683 208,608,833 231,322,683 208,608,833
17.9 Provision for taxation net off AIT (BBL only)

A. Provision for tax:
Balance at the beginning of the year 27,502,064,330 23,934,664,849
Net addition during the year 3,765,699,754 3,567,399,481
Balance at the end of the year 31,267,764,084 27,502,064,330
B. Advance income tax:
Add: Paid during the year 4,642,899,233 2,557,956,724
Balance at the end of the year 27,123,405,060 22,480,505,827
Provision for taxation (A-B) 4,144,359,024 5,021,558,503
Corporate tax position of the Bank has been presented in Annexure F.
17.10 Unclaimed and undistributed dividend
As on 31 December 2022, the unclaimed/undistributed dividend was BDT 11,588,296
Further to above, in pursuant to SEC/SRMIC/165-2020/part-1/182, dated July 19, 2021 and Capital Market Stabilization Fund, Rules 2021 issued by Bangladesh Securities and Exchange
Commission (BSEC) regarding transfer the amount held against unclaimed dividend/undistributed /unsettled public subscription money for the period of more than 3 (three) years; we have transferred
the amount BDT 60,840,320 to the Capital Market Stabilization Fund (CMSF).
17.11 Start-up fund (Bank Only)

As per SMESPD circular 04 dated March 29, 2021 and SMESPD circular letter 05 dated April 26, 2021, 1% of net profit after tax has been transferred to the fund. The details are given below:
Balance at the beginning of the year 100,877,625 -
Addition during the period (1% of PAT) 57,631,736 100,877,625
Closing balance at the end of the year 158,509,361 100,877,625
81
In Taka
Particulars Note
2022 2021 2022 2021
17.12 Other payables
Payables related to cards and others 657,651,647 516,065,060 657,651,647 516,065,060
Payable to merchant 6,058,310 4,791,116 6,058,310 4,791,116
Payables to co brand ATM 3,106,745 3,106,744 3,106,745 3,106,744
Miscellaneous payable 3,521,309,613 3,192,378,079 3,521,309,613 3,192,378,079
4,188,126,315 3,716,340,999 4,188,126,315 3,716,340,999
17.13 Other liabilities of subsidiaries
BRAC EPL Stock Brokerage Limited 702,205,336 1,008,535,941
bKash Limited 1,319,305,112 811,129,171
2,130,358,965 2,034,411,051
Less: Inter company transactions:
BRAC Bank Limited 68,908,939 4,408,557
bKash Limited 2,657,000 11,235,711
71,565,939 15,644,268
2,058,793,026 2,018,766,783
17.14 CSR Fund (FX gain)
Net CSR Fund represents the amount of CSR liability set aside from the foreign exchange gain net of tax arisen during May and June 2022 according to Bangladesh Bank directive. The calculation is
presented below:
50% of FX income for Tax charged on income
Particulars FX income May'22 FX income Jun'22 Net CSR Fund after tax
May-Jun 2022 @37.5%
Net CSR Fund expense 226,964,371 375,271,061 301,117,716 112,919,144 188,198,573
18 Share capital
18.1 Authorized capital
2,000,000,000 ordinary shares of Tk. 10 each 20,000,000,000 20,000,000,000
18.2 Issued, Subscribed and Paid up capital

100,000,000 Ordinary Shares of Tk. 10/- each issued for cash 1,000,000,000 1,000,000,000
1,037,942,153 Ordinary Shares of Tk. 10/- each issued as bonus share 11,423,550,820 10,379,421,530
26,400,000 Right Shares of Tk. 10/- each issued in 2008 264,000,000 264,000,000
221,652,288 Right Shares of Tk. 10/- each issued in 2014 2,216,522,880 2,216,522,880
1,149,589 Ordinary Shares of Tk. 10/- each issued as 1st bond converted share in 2016 11,495,890 11,495,890
2,237,835 Ordinary Shares of Tk. 10/- each issued as 2nd bond converted share in 2017 22,378,350 22,378,350
2,790,534 Ordinary Shares of Tk. 10/- each issued as 3rd bond converted share in 2018 27,905,340 27,905,340
14,965,853,280 13,921,723,990
82
18.2.1 History of paid-up capital
Given below the history of raising of share capital of BRAC Bank Limited:
Allotment Number of shares issued Total paid up shares Addition in amount of Total paid up capital
Particulars
year Bonus shares Subscription (No of shares) share capital (BDT) (BDT)
First (Subscription to the Memorandum and Articles of
1999 - 2,000,000 2,000,000 200,000,000 200,000,000
Association) at the time of Incorporation
BRAC (subscription) 2001 - 500,000 2,500,000 50,000,000 250,000,000
BRAC (subscription) 2003 - 674,500 3,174,500 67,450,000 317,450,000
ShoreCap International Ltd. 2004 - 875,700 4,050,200 87,570,000 405,020,000
International Finance Corporation 2004 - 949,800 5,000,000 94,980,000 500,000,000
IPO 2006 5,000,000 - 10,000,000 500,000,000 1,000,000,000
Bonus Share 20% 2007 2,000,000 - 12,000,000 200,000,000 1,200,000,000
Bonus Share 10% 2008 1,200,000 - 13,200,000 120,000,000 1,320,000,000
Right Share 20% 2008 - 2,640,000 15,840,000 264,000,000 1,584,000,000
Bonus Share 30% 2009 4,752,000 - 20,592,000 475,200,000 2,059,200,000
Bonus Share 30% 2010 6,177,600 - 26,769,600 617,760,000 2,676,960,000
Bonus Share 20% 2011 5,353,920 - 32,123,520 535,392,000 3,212,352,000
Denomination of face value from Tk.100 to Tk.10 per share 2011 - - 321,235,200 - 3,212,352,000
Bonus Share 20% 2012 64,247,040 - 385,482,240 642,470,400 3,854,822,400
Bonus Share 15% 2013 57,822,336 - 443,304,576 578,223,360 4,433,045,760
Bonus Share 10% 2014 44,330,457 - 487,635,033 443,304,570 4,876,350,330
Right share 50% 2014 - 221,652,288 709,287,321 2,216,522,880 7,092,873,210
Fresh Issue against Bond, 1st Conversion of Bond 2016 - 1,149,589 710,436,910 11,495,890 7,104,369,100
Fresh Issue against Bond, 2nd Conversion of Bond 2017 - 2,237,835 712,674,745 22,378,350 7,126,747,450
Bonus Share 20% 2017 142,534,949 - 855,209,694 1,425,349,490 8,552,096,940
Fresh Issue against Bond, 3rd Conversion of Bond 2018 - 2,790,534 858,000,228 27,905,340 8,580,002,280
Bonus Share 25% 2018 214,500,057 - 1,072,500,285 2,145,000,570 10,725,002,850
Bonus Share 15% 2019 160,875,042 - 1,233,375,327 1,608,750,420 12,333,753,270
Bonus Share 7.50% 2020 92,503,149 1,325,878,476 925,031,490 13,258,784,760
Bonus Share 5% 2021 66,293,923 - 1,392,172,399 662,939,230 14,965,853,280
Bonus Share 7.50% 2022 104,412,929 - 1,496,585,328 1,044,129,290 14,965,853,280
Total 14,965,853,280
18.2.2 Issued, subscribed and paid up capital
Add: Stock dividend of 2021 issued in 2022 1,044,129,290 662,939,230 1,044,129,290 662,939,230
83
In Taka
Particulars
2022 2021 2022 2021
18.3 Initial public offering (IPO)
According to IPO rules 2006 “Initial public offering (IPO)” means first offering of security by an issuer to the general public. Out of the total issued, subscribed, and fully paid up capital of the bank
5,000,000 ordinary shares of Tk. 100.00 each amounting to Taka 500,000,000 was raised through Initial public offering of shares held in 2006.
18.4 Cash dividend/bonus Issue
On 28 April 2022, 15% Dividend (7.5% stock & 7.5% Cash) were approved by the shareholders at it's 23rd Annual General Meeting. The stock dividend was distributed on 06 June 2022 accordingly.
18.4.1 The Bank held its 8th EGM on 3 November 2011 and changed the face value of share from Tk. 100 per share to Tk. 10 per share and market lot of shares from 50 shares to 500 shares in each lot.
The maximum limit for Authorized Share capital was increased to BDT 20,000,000,000. At 11 December 2014, DSE new Trading system launched that neutralize market lot into 1 shares.
18.5 Ordinary Shares
% of shareholding 2022 2021
No. of Shares (2022)
(2022) Taka Taka
Director 692,041,839 46.24% 6,920,418,390 6,437,712,840
Government - 0.00% - -
Institutions 196,660,035 13.14% 1,966,600,350 1,428,665,140
Foreign 503,403,548 33.64% 5,034,035,480 5,272,976,420
General public 104,479,906 6.98% 1,044,799,060 782,369,590
1,496,585,328 100% 14,965,853,280 13,921,723,990
18.5.1 Share trading
Trading of BRAC Bank's ordinary shares was started on 31 January 2007 at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The closing market price on 31 December 2022 was
Tk. 38.50 at Dhaka Stock Exchange (DSE) and Tk. 38.70 at Chittagong Stock Exchange (CSE).
18.6 Classification of shareholding
Range of holding of shares Number of Number of shares Percentage of holding
shareholders (2022) (2022) of shares (2022)
Less than 500 8,087 1,658,147 0.11%

500 to 5,000 10,848 19,072,814 1.27%
5,001 to 10,000 2,051 14,360,555 0.96%
10,001 to 20,000 862 12,170,649 0.81%
20,001 to 30,000 356 8,812,477 0.59%
30,001 to 40,000 166 5,773,098 0.39%
84
40,001 to 50,000 104 4,802,623 0.32%
50,001 to 100,000 199 14,148,651 0.95%
100,001 to 1,000,000 259 75,733,345 5.06%
Over 1,000,000 99 1,340,052,969 89.54%
Total 23,031 1,496,585,328 100%
18.6.1 Name of the directors and their shareholdings as at 31 December 2022:

Opening Closing
% of shares held as % of shares held as on
Name Status position position
on 31 December 2022 31 December 2021
Dr. Ahsan H Mansur (Chairman) Independent Director NIL NIL NIL NIL
Asif Saleh (Nominated by BRAC) Nominated Director 31,000 33,325 0.002% 0.002%
Farzana Ahmed Independent Director NIL NIL NIL NIL
Fahima Choudhury Independent Director NIL NIL NIL NIL
Dr. Zahid Hussain Independent Director NIL NIL NIL NIL
Meheriar M Hasan (Nominated by BRAC) Nominated Director NIL NIL NIL NIL
Shameran Bahar Abed (Nominated by BRAC) Nominated Director 997,500 1,072,312 0.072% 0.071%
Dr. Mustafa Kamal Mujeri Independent Director NIL NIL NIL NIL
Faruq Mayeenuddin Ahmed Independent Director NIL NIL NIL NIL
Salek Ahmed Abul Masrur Independent Director NIL NIL NIL NIL
18.7 Share premium Year of issuance
5,000,000 ordinary shares @ Tk. 70 per share 2006 350,000,000 350,000,000
2,640,000 ordinary shares @ Tk. 400 per share 2008 1,056,000,000 1,056,000,000
221,652,288 ordinary shares @ Tk. 10 per share 2014 2,216,522,880 2,216,522,880
1,149,589 ordinary shares @ Tk. 32.55 per share 2016 37,419,151 37,419,151
3,853,767,032 3,853,767,032
18.7.1 Particulars of share premium

Sponsor:
BRAC 1,324,534,000 1,324,534,000
Others 192,580 192,580
Non sponsor:
International Finance Corporation (IFC) 219,056,640 219,056,640
ShoreCap International Limited 92,473,920 92,473,920
Non Resident Bangladeshis 91,555,530 91,555,530
Mutual Funds 189,254,190 189,254,190
General Public 1,936,700,172 1,936,700,172
3,853,767,032 3,853,767,032
85
18.8 Capital Adequacy Ratio - As per BASEL-III
In Taka
Particulars
2022 2021 2022 2021
Common equity tier-1 (going concern capital)
Fully paid-up capital/funds from head office for the purpose of meeting the capital adequacy 14,965,853,280 13,921,723,990 14,965,853,280 13,921,723,990
Non-repayable share premium account 3,853,767,032 3,853,767,032 3,853,767,032 3,853,767,032
Statutory reserve 11,148,169,834 10,067,956,958 11,112,086,248 10,067,956,958
Retained earnings 29,086,051,630 26,402,962,532 18,798,934,455 16,329,861,552
Dividend equalization fund 355,218,455 355,218,455 355,218,455 355,218,455
Minority/Non-controlling interest in subsidiaries 19,875,982,881 19,760,616,148 - -
Sub-total 79,285,043,112 74,362,245,115 49,085,859,470 44,528,527,987
Regulatory adjustments
Goodwill and all other intangible assets 5,082,229,672 4,958,310,051 1,087,487,802 957,240,725
Deferred tax assets (DTA) 6,207,462,673 5,050,299,241 4,565,043,290 3,964,542,244
Sub-total 11,289,692,345 10,008,609,292 5,652,531,093 4,921,782,969
Total admissible tier-1 capital 67,995,350,767 64,353,635,823 43,433,328,377 39,606,745,018
Tier-2 capital (going concern capital)

General provision 5,685,272,837 4,524,969,048 5,685,272,837 4,524,969,048
Sub-total 5,685,272,837 4,524,969,048 5,685,272,837 4,524,969,048
Maximum limit of tier-2 capital (Tier 2 capital can be maximum up to 4.0% of the total RWA or 51,989,248,501 49,708,531,248 30,833,575,176 28,375,981,919
88.89% of CET1, whichever is higher)
Total admissible tier-2 capital 5,685,272,837 4,524,969,048 5,685,272,837 4,524,969,048
Total capital 73,680,623,604 68,878,604,871 49,118,601,214 44,131,714,066
Total risk weighted assets 380,318,534,649 337,281,898,721 349,831,724,733 307,359,660,182
Minimum capital requirement (MCR - 12.50%) 47,539,816,831 42,160,237,340 43,728,965,592 38,419,957,523
Surplus/ (deficiency) 26,140,806,772 26,718,367,531 5,389,635,623 5,711,756,543
Capital adequacy ratio:
Common equity tier-1 (against standard of minimum 6%) 17.88% 19.08% 12.42% 12.89%
Total capital to risk-weighted asset ratio* 19.37% 20.42% 14.04% 14.36%
Minimum CRAR % 12.50% 12.50% 12.50% 12.50%
Surplus/(deficiency) % 6.87% 7.92% 1.54% 1.86%
* In Standalone regulatory capital calculation, fair value gain of BDT 7,643,913,224 on investment in subsidiaries and associates arisen out of application of IFRS 9 for the measurement of equity
investment in subsidiaries and associate at fair value. The fair value gain/loss reported as FVOCI directly as part of equity as per IFRS 9. In absence of any specific guidelines for the treatment of Fair
value gain/loss in Risk Based Capital Adequacy guidelines by Bangladesh Bank, the fair value gain /loss has not been considered as part of Tier 1 capital. However, as this has emerged from
implementation of IFRS 9 (which came in to effect in 2018), we have requested Bangladesh Bank for their guidance on the same. While the fair value gain /loss is a part of Tier 1 capital according to the
recommendation of International Basel Committee. Had the fair value gain/loss been considered as component of Tier-I capital as per international practice, the standalone Regulatory Capital to Risk-
weighted Asset Ratio (CRAR) would have been reported at 15.72%.
86
In Taka
Particulars Note
2022 2021 2022 2021
19 Statutory reserve
Transferred from profit during the year 1,080,212,876 662,939,230 1,044,129,290 662,939,230
20 Dividend equalization fund

Dividend equalization fund 355,218,455 355,218,455 355,218,455 355,218,455
355,218,455 355,218,455 355,218,455 355,218,455
21 Revaluation reserve on govt. securities

Add: Addition during the year 527,891,705 1,277,441,975 527,891,705 1,277,441,975
Less: Adjustment during the year 1,680,939,467 3,593,075,101 1,680,939,467 3,593,075,101
1,337,245,165 2,490,292,927 1,337,245,165 2,490,292,927
22 Fair value gain/(loss) on equity investment (Standalone)

Net change during the year 258,992,660 6,253,722,718
7,643,913,224 7,384,920,564
23 Translation reserve
The functional currency of the Bank's Off-shore Banking Unit (OBU) is in United States Dollar (USD). Due to recent steepest price hike of USD against bank's presentation currency BDT, a significant
increase in translation reserve has been generated both in separate and consolidated financial statements of the Bank.
24 Surplus in profit and loss account/Retained earnings (standalone)
Add: Remeasurements gain/(loss) of defined benefits liabilities (assets) 10.5.3 (104,081,055) (144,689,978)
Add: Retained surplus for the year 5,763,173,573 5,546,930,564
Less: Transfer to statutory reserve 1,044,129,290 662,939,230
Less: Start-up Fund 57,631,736 100,877,625
Less: Cash dividend paid 1,044,129,299 1,325,878,476
Less: Bonus share issued 1,044,129,290 662,939,230
Closing balance 18,798,934,455 16,329,861,552
87
In Taka
Particulars Note
2022 2021 2022 2021
24.1 Surplus in profit and loss account/Retained earnings (Consolidated)
BRAC Bank Limited 18,798,934,455 16,329,861,552
18,798,934,455 16,329,861,552
BRAC EPL Investment Limited
Opening balance (1,607,496,637) (1,855,049,822)
Add: Retained surplus/(deficit) for the year 272,841,038 247,553,185
Sub total (1,334,655,599) (1,607,496,637)
BRAC EPL Stock Brokerage Limited
Opening balance 943,567,598 711,882,093
Add: Retained surplus/(deficit) for the year 68,281,410 231,685,505
Less: Transfer to statutory reserve 23,213,334 -
Sub total 988,635,674 943,567,598
bKash Limited
Opening balance 10,742,740,197 3,715,030,852
Add: Retained surplus/(deficit) for the year 59,554,596 (439,513,503)
Add: Effect of change in preference share of bKash - 7,445,299,204
Add: Remeasurements of defined benefits liability (assets) 1,145,219 21,923,644
Less: Transfer to statutory reserve 12,870,252 -
Sub total 10,790,569,760 10,742,740,197
BRAC Saajan Exchange Limited
Opening balance 3,364,585 146,462,896
Add: Retained surplus/(deficit) for the year (101,881,820) (143,098,311)
Less: Impairment of goodwill (54,905,518) -
Add: Effect of change of shareholding (1,844,745) -
Sub total (155,267,498) 3,364,585
Associates
Opening balance - (biTS) (9,074,763) (30,190,001)
Add: Share of profit/(loss) of equity in associate company - (biTS) 4,860,182 3,742,052
Gain/(loss) on disposal/loss of control of associates 2,049,419 17,373,186
Sub total (2,165,162) (9,074,763)
29,086,051,630 26,402,962,532
88
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Particulars Note
2022 2021 2022 2021
24.1.1 Net effect of all items directly recognised in equity
Effect of change of shareholding in subsidiaries (1,844,745) -
Effect of change in preference share of bKash - 7,445,299,202
Remeasurement of defined benefits liabilities (assets)-Gratuity (102,935,836) (122,766,334)
(104,780,581) 7,322,532,868
24.2 Non-controlling interest
BRAC EPL Investments Limited 716,701 567,516
bKash Limited 19,728,452,974 19,619,313,898
BRAC SAAJAN Exchange Limited 1,408,426 2,916,777
19,875,982,881 19,760,616,148
24.2.1 Reconciliation of Non-controlling interest
BRACEPL Investments BRAC EPL Stock BRAC SAAJAN Exchange
Particulars bKash Limited
Ltd. Brokerage Ltd. Limited
Opening balance 567,516 137,817,957 19,619,313,898 2,916,777
Share of profit/(loss) 149,185 7,586,823 107,079,957 (6,792,121)
Effect of change of shareholding - - - 5,034,641
Translation adjustment - - - 249,129
Remeasurements loss on defined benefits liability (assets) - - 2,059,119 -
716,701 145,404,780 19,728,452,974 1,408,426
25 Contingent liabilities
Acceptances and endorsements 83,028,540,659 50,478,536,940 83,028,540,659 50,478,536,940
Irrevocable letters of credit 27,451,963,219 26,598,203,443 27,451,963,219 26,598,203,443
Total Letters of credit and acceptances and endorsements 25.1 110,480,503,878 77,076,740,383 110,480,503,878 77,076,740,383
Letter of guarantees 25.2 18,607,062,875 11,793,414,671 18,607,062,875 11,793,414,671
Bills for collection 25.3 21,612,714,770 16,438,866,245 21,612,714,770 16,438,866,245
Other Commitments 25.4 15,144,320,058 28,887,787,694 15,144,320,058 28,887,787,694
165,844,601,581 134,196,808,993 165,844,601,581 134,196,808,993
89
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Particulars Note
2022 2021 2022 2021
25.1 Irrevocable letters of credit including acceptances and endorsements
Letter of credit (Inland) 319,104,717 2,778,557,467 319,104,717 2,778,557,467
Letter of credit (General) 81,869,143,598 57,860,271,470 81,869,143,598 57,860,271,470
Back to back L/C 5,871,563,146 4,052,799,770 5,871,563,146 4,052,799,770
Back to back bills 5,771,087,024 1,208,061,714 5,771,087,024 1,208,061,714
Back to back bills (EDF) 16,649,605,393 11,177,049,962 16,649,605,393 11,177,049,962
110,480,503,878 77,076,740,383 110,480,503,878 77,076,740,383
Less: Margin 923,190,579 748,254,248 923,190,579 748,254,248
109,557,313,299 76,328,486,135 109,557,313,299 76,328,486,135
25.2 Letter of guarantees
Letter of guarantee (Local) 8,419,835,932 10,898,451,190 8,419,835,932 10,898,451,190
Letter of guarantee (Foreign) 2,798,693,660 576,806,964 2,798,693,660 576,806,964
Foreign counter guarantee 7,388,533,283 318,156,517 7,388,533,283 318,156,517
18,607,062,875 11,793,414,671 18,607,062,875 11,793,414,671
Less: Margin 178,553,887 216,052,368 178,553,887 216,052,368
18,428,508,988 11,577,362,303 18,428,508,988 11,577,362,303
Balance for which the Bank is contingently liable in respect of guarantee issued favouring:
Government 3,986,558,266 2,948,353,668 3,986,558,266 2,948,353,668
Bank and other financial institutions 744,161,442 589,670,734 744,161,442 589,670,734
Others 13,876,343,167 8,255,390,270 13,876,343,167 8,255,390,270
18,607,062,875 11,793,414,672 18,607,062,875 11,793,414,672
Less : Margin 178,553,887 216,052,368 178,553,887 216,052,368
18,428,508,988 11,577,362,304 18,428,508,988 11,577,362,304
25.3 Bills for collection
Outward local bills for collection 15,302,217,027 15,299,010,106 15,302,217,027 15,299,010,106
Outward foreign bills for collection 6,310,497,743 1,139,856,139 6,310,497,743 1,139,856,139
21,612,714,770 16,438,866,245 21,612,714,770 16,438,866,245
25.4 Other Commitments
Swap deals with banks and customers 13,070,011,143 10,726,189,903 13,070,011,143 10,726,189,903
Spot and forward deals with banks and customers 2,074,308,915 18,161,597,791 2,074,308,915 18,161,597,791
15,144,320,058 28,887,787,694 15,144,320,058 28,887,787,694
90
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Particulars Note
2022 2021 2022 2021
25.5 Significant concentration wise grouping
i) Documentary credits and short term trade related transactions 150,700,281,523 105,309,021,299 150,700,281,523 105,309,021,299
ii) Forward asset purchased and forward deposits placed - - - -
iii) Undrawn formal standby facilities, credit lines and commitments to lend:
-Under one year - - - -
-One year and over; - - - -
iv) Spot and forward foreign exchange rate contracts - - - -
v) Other exchange contracts 2,074,308,915 18,161,597,791 2,074,308,915 18,161,597,791
vi) Others 13,070,011,143 10,726,189,903 13,070,011,143 10,726,189,903
165,844,601,581 134,196,808,993 165,844,601,581 134,196,808,993
25.6 Suit filed by the Bank
No law suit has been filed by the bank against contingent liabilities. However, there are three performance guarantees under litigation between Bank's customers and beneficiaries. Adequate
provisions has been kept against these contingencies.
26 Income statement
Income:
Interest, discount and similar income 26.1 37,897,775,275 30,613,868,935 32,593,018,679 26,613,113,886
Dividend income 29 265,932,312 179,816,729 265,932,312 179,816,729
Fees, commission and brokerage 26.2 9,007,549,889 7,297,576,594 3,369,781,836 2,744,920,279
Gains less losses arising from government securities 757,187,142 345,451,894 757,187,142 345,451,894
Gains less losses arising from investment securities/trading shares-MF 30,512,410 228,515,315 30,512,410 228,515,315
Gains less losses arising from dealing from foreign currencies 30 2,514,538,150 695,276,642 2,514,538,150 695,276,642
Other operating income 31 313,551,635 175,087,450 267,298,708 146,093,679
50,787,046,813 39,535,593,559 39,798,269,237 30,953,188,424
Expenses:
Interest paid on deposits and borrowings etc. 28 12,953,873,731 7,912,883,508 13,227,359,203 7,589,298,326
Administrative expenses 26.3 18,349,072,941 15,105,621,818 9,935,583,382 8,059,931,152
Impairment of goodwill 38 54,905,518 - - -
Depreciation on banking assets 39 3,509,901,370 3,026,776,858 1,792,138,336 1,732,111,456
Other operating expenses 40 4,474,735,716 3,383,027,192 3,713,939,396 2,627,953,670
39,342,489,276 29,428,309,376 28,669,020,317 20,009,294,604
Operating Profit 11,444,557,537 10,107,284,183 11,129,248,920 10,943,893,820
91
In Taka
Particulars Note
2022 2021 2022 2021
26.1 Interest, discount and similar income
Interest on loans and advances 27,591,738,769 21,653,006,358 27,456,551,626 21,235,466,936
Interest on balance with other banks 870,824,757 594,251,565 5,502,854 2,173,585
Interest on fixed deposits with other banks 2,437,768,808 1,892,247,656 534,902,237 262,867,857
Other interest income 465,144,401 85,712,369 465,144,401 85,712,369
Interest on government securities 3,305,864,953 4,747,356,870 3,305,864,953 4,747,356,870
Interest on reverse repo 581,790,857 4,247,691 581,790,857 4,247,691
Interest on corporate & subordinated bond 244,450,943 275,455,497 244,450,943 275,455,497
Interest on interest rate swap (IRS) 5,209,823 5,319,038 5,209,823 5,319,038
Gain (loss) on interest rate swap (IRS) position (6,399,015) (5,485,957) (6,399,015) (5,485,957)
Investment income/loss from subsidiaries 2,401,380,979 1,361,757,848 - -
37,897,775,275 30,613,868,935 32,593,018,679 26,613,113,886
26.2 Fees, commission and brokerage
Fees 2,392,273,067 1,988,438,814 2,392,273,067 1,988,438,814
Commission 6,615,276,822 5,309,137,780 977,508,769 756,481,465
9,007,549,889 7,297,576,594 3,369,781,836 2,744,920,279
26.3 Administrative expenses
Salaries and allowances 12,044,197,172 9,889,092,833 8,151,587,989 6,625,995,876
Rent, taxes, insurance, electricity etc. 697,538,365 645,414,492 507,158,511 473,700,396
Legal expenses 62,177,773 62,840,810 30,384,953 33,352,689
Postage, stamps, telecommunication etc. 411,043,177 317,984,231 308,505,338 222,631,352
Stationery, printing, advertisement etc. 3,223,940,283 2,608,773,879 396,662,334 221,634,405
Chief executive's salary and fees 24,471,250 19,424,250 24,471,250 19,424,250
Directors' fees and expenses 4,534,312 4,572,209 2,552,000 2,437,600
Auditors' fee 8,469,389 7,125,166 1,840,000 1,840,000
Repairs and maintenance of fixed assets 1,872,701,220 1,550,393,948 512,421,007 458,914,584
18,349,072,941 15,105,621,818 9,935,583,382 8,059,931,152
27 Interest income
Interest on loans and advances 27,591,738,769 21,653,006,358 27,456,551,626 21,235,466,936
Interest on balance with other banks 870,824,757 594,251,565 5,502,854 2,173,585
Interest on fixed deposits with other banks 3,470,458,213 2,333,307,976 920,914,577 515,005,098
Other interest income 465,144,401 85,712,369 465,144,401 85,712,369
32,398,166,140 24,666,278,268 28,848,113,458 21,838,357,988
Less: Elimination of inter unit/company transactions 1,032,689,405 441,060,320 386,012,340 252,137,241
31,365,476,735 24,225,217,948 28,462,101,118 21,586,220,747
92
In Taka
Particulars Note
2022 2021 2022 2021
28 Interest paid on deposits and borrowings etc.
A. Interest paid on deposits:
Current account 1,239,115,775 972,611,273 950,072,542 539,413,646
Short term deposit 165,519,630 200,927,646 165,519,630 200,927,646
Savings deposit 714,431,796 665,574,233 714,431,796 665,574,233
Term deposit 9,281,055,265 5,226,073,047 9,281,055,265 5,226,073,047
11,400,122,466 7,065,186,199 11,111,079,233 6,631,988,572
B. Interest paid for borrowings:
Interest on money at call and short notice 124,418,722 132,329,734 124,418,722 132,329,734
Interest on borrowings from banks and FIs 1,550,896,151 642,769,998 1,466,747,791 563,459,364
Interest on funding SWAP 85,424,425 19,776,850 85,424,425 19,776,850
Interest on re-finance and pre-finance from central bank & government agencies 509,774,721 406,218,426 509,774,721 406,218,426
Interest on repurchase agreement (REPO) 197,086,569 87,662,621 197,086,569 87,662,621
Interest expense-Affordable Housing Bond 118,840,082 - 118,840,082 -
2,586,440,670 1,288,757,629 2,502,292,310 1,209,446,995
13,986,563,136 8,353,943,828 13,613,371,543 7,841,435,567
Less: Elimination of inter unit/company transactions 1,032,689,405 441,060,320 386,012,340 252,137,241
12,953,873,731 7,912,883,508 13,227,359,203 7,589,298,326
29 Investment income
Interest on government securities 3,305,864,953 4,747,356,870 3,305,864,953 4,747,356,870
Interest on reverse REPO 581,790,857 4,247,691 581,790,857 4,247,691
Interest on corporate & subordinated bond 244,450,943 275,455,497 244,450,943 275,455,497
Interest on interest rate swap (IRS) 5,209,823 5,319,038 5,209,823 5,319,038
Dividend on shares & mutual funds 265,932,312 179,816,729 265,932,312 179,816,729
Capital gain (loss) on government securities 757,187,142 345,451,894 757,187,142 345,451,894
Capital gain (loss) on shares & mutual funds 30,512,410 228,515,315 30,512,410 228,515,315
Investment income/(loss) of subsidiaries 29.1 2,401,380,979 1,361,757,848 - -
7,585,930,404 7,142,434,925 5,184,549,425 5,780,677,077
29.1 Investment income/(loss) of subsidiaries

Dividend income 66,045,174 44,823,469
Realised gain/(loss) during the year (128,542,694) (102,153,300)
Fair value adjustment at reporting date (40,670,769) 209,675,164
Interest on treasury bills & bonds 2,504,549,268 1,209,412,515
2,401,380,979 1,361,757,848
93
In Taka
Particulars Note
2022 2021 2022 2021
30 Commission, exchange and brokerage
Commission from sale of sanchaya patra 6,795,798 84,301,766 6,795,798 84,301,766

Commission from issue of payment orders, DD and TT 3,519,353 5,830,538 3,519,353 5,830,538
Commission from issue of letter of guarantee 97,011,555 73,718,628 97,011,555 73,718,628
Commission from issue of letters of credit (Import and Export) 723,271,753 470,603,536 723,271,753 470,603,536
Other commission 146,910,310 122,026,997 146,910,310 122,026,997
Gain /(Loss) on foreign currency dealings 2,514,538,150 695,276,642 2,514,538,150 695,276,642
Loan processing fees 875,409,231 560,484,117 875,409,231 560,484,117
Account activity fees 105,643,412 179,914,635 105,643,412 179,914,635
Import and export related fees 242,234,916 214,464,552 242,234,916 214,464,552
Fees and commission-cards 864,187,353 645,545,812 864,187,353 645,545,812
Relationship fees 6,399,494 3,761,463 6,399,494 3,761,463
Loan early settlement fees 34,799,586 77,592,716 34,799,586 77,592,716
Service charges for ATM Card 138,287,642 149,712,089 138,287,642 149,712,089
Fund collection/ transfer fees 121,080 137,718 121,080 137,718
Student service center fees 15,890,250 13,646,700 15,890,250 13,646,700
Cancellation fees 23,650 69,900 23,650 69,900
Cheque collection fees 11,730 188,100 11,730 188,100
Custodian fees 21,759,954 20,398,110 21,759,954 20,398,110
Other fees 30.1 87,504,769 122,522,902 87,504,769 122,522,902
Commission and brokerage income of subsidiaries 5,684,804,213 4,593,062,686 - -
11,569,124,199 8,033,259,607 5,884,319,986 3,440,196,921
Less: Elimination of inter unit/company transactions 47,036,160 40,406,371 - -
11,522,088,039 7,992,853,236 5,884,319,986 3,440,196,921
30.1 Other fees
Passport endorsement fees 671,712 159,400 671,712 159,400
Locker fees 5,622,587 5,265,039 5,622,587 5,265,039
Service fees - ATM 604,505 449,979 604,505 449,979
Service fees - BIT 1,395,440 1,373,050 1,395,440 1,373,050
Service fees - bKash 6,318,705 9,097,338 6,318,705 9,097,338
Annual membership fees-premium banking 11,800 11,800 11,800 11,800
Annual fees-SMS banking 32,316,815 37,593,510 32,316,815 37,593,510
Annual fees-internet banking 1,320,000 1,780,000 1,320,000 1,780,000
Syndication fees 6,120,000 - 6,120,000 -
Valuation fees 11,385 - 11,385 -
E-commerce acquiring fees - 23,041,325 - 23,041,325
Miscellaneous fees income 33,111,820 43,751,461 33,111,820 43,751,461
87,504,769 122,522,902 87,504,769 122,522,902
94
In Taka
Particulars Note
2022 2021 2022 2021
31 Other operating income

Profit on sale of fixed assets 15,414,283 3,798,917 15,414,283 3,798,917
Profit share from other bank 107,150,999 107,157,532 107,150,999 107,157,532
Miscellaneous income 144,733,426 35,137,230 144,733,426 35,137,230
Other operating income of subsidiaries 46,252,927 28,993,771 - -
313,551,635 175,087,450 267,298,708 146,093,679
32 Rent, taxes, insurance, electricity, etc.

Rent, rates and taxes 32.1 331,562,654 322,815,149 284,237,227 270,100,724
Insurance 98,826,955 89,905,087 22,790,558 13,827,612
Power and electricity 257,066,521 223,032,603 190,147,884 180,256,170
WASA and sewerage 10,082,235 9,661,653 9,982,842 9,515,890
697,538,365 645,414,492 507,158,511 473,700,396
32.1 Rent, rates and taxes
Rent, taxes, insurance, electricity, etc. 1,443,367,456 1,355,992,047 1,186,768,665 1,128,047,204
Less: rent exp. reversal due to depreciation and interest exp. under IFRS 16 -Leases 1,111,804,802 1,033,176,898 902,531,438 857,946,480
331,562,654 322,815,149 284,237,227 270,100,724
33 Postage, stamp, telecommunication, etc.

Postage and courier 67,630,940 51,388,405 42,979,569 34,325,260
Telegram, telex, fax and network 146,324,119 94,216,080 119,022,158 60,469,128
Court fees and stamps 89,136,635 78,141,242 89,136,635 78,141,242
Telephone 107,951,483 94,238,504 57,366,976 49,695,722
411,043,177 317,984,231 308,505,338 222,631,352
34 Stationery, printing, advertisements, etc.
Stationery and printing 176,560,577 100,607,005 160,478,031 91,173,910
Security stationery 102,415,600 53,297,028 102,415,600 53,297,028
Advertisement 2,944,964,106 2,454,869,846 133,768,703 77,163,467
3,223,940,283 2,608,773,879 396,662,334 221,634,405
35 Chief executive's salary and fees
Basic salary 17,010,000 13,249,250 17,010,000 13,249,250
Bonus and others 35.1 5,961,250 4,675,000 5,961,250 4,675,000
House rent allowance 1,500,000 1,500,000 1,500,000 1,500,000
24,471,250 19,424,250 24,471,250 19,424,250
95
In Taka
Particulars Note
2022 2021 2022 2021
35.1 Bonus and others
Festival bonus 2,835,000 2,100,000 2,835,000 2,100,000
Performance bonus 1,000,000 1,000,000 1,000,000 1,000,000
Leave fair assistance 2,126,250 1,575,000 2,126,250 1,575,000
5,961,250 4,675,000 5,961,250 4,675,000
36 Directors' fees
Directors' fees represent fees paid for attending board meeting, board audit committee meeting and risk management committee meeting @ Tk. 8,000 from January to December 2022 per director
per meeting.
Meeting attendance fees 4,534,312 4,572,209 2,552,000 2,437,600
4,534,312 4,572,209 2,552,000 2,437,600
37 Auditor's fees
Audit fees 8,469,389 7,125,166 1,840,000 1,840,000
8,469,389 7,125,166 1,840,000 1,840,000
38 Impairment of goodwill
On 26 May 2021, the operations of BRAC Saajan Exchange Limited was suspended on regulatory ground by the local regulator in UK and subsequently to meet up fixed operational costs, the net
asset value (NAV) becomes negative. In 2022, considering the negative net asset value and negative cash flows, an impairment loss of goodwill amounting to BDT 54,905,518 related to BRAC Saajan
has been accounted for in the consolidated financials in line with International Accounting Standard (IAS) 36: Impairment of Assets.
39 Depreciation and repair of the bank’s assets
Depreciation of property, plant and equipment
Furniture and fixtures 154,099,718 163,899,773 139,671,303 148,736,943
Office floor space 612,569 516,375 100,858 100,858
Office equipment 90,755,778 108,234,082 81,295,046 94,567,471
IT hardware 993,221,762 810,561,705 393,579,196 353,862,417
Motor vehicles 63,815,458 88,859,710 52,113,021 64,518,382
Leasehold improvement 39,156,862 12,393,972 - -
Right of use assets (RoU) as per IFRS 16 1,006,689,271 953,842,898 777,297,844 762,397,055
IT software 1,161,549,952 888,468,343 348,081,068 307,928,330
3,509,901,370 3,026,776,858 1,792,138,336 1,732,111,456
Repairs and maintenance expenses
Transportation expenses 599,399,886 528,010,816 417,009,409 371,932,390
96
In Taka
Particulars Note
2022 2021 2022 2021
Equipment repairing expense 81,908,289 70,986,044 22,046,155 13,135,741
Hardware and software maintenance expense 1,039,090,279 820,320,339 10,076,930 12,967,822
Premises maintenance expense 152,302,766 131,076,749 63,288,513 60,878,631
1,872,701,220 1,550,393,948 512,421,007 458,914,584
5,382,602,590 4,577,170,806 2,304,559,343 2,191,026,040
40 Other expenses
Conveyance expense 88,041,422 127,323,767 88,041,422 127,323,767
Fuel expenses 40.1 40,352,651 24,580,181 40,352,651 24,580,181
Traveling cost 46,755,693 27,586,782 46,755,693 27,586,782
Professional fees 86,052,814 118,553,625 86,052,814 118,553,625
Entertainment 78,947,542 45,520,007 78,947,542 45,520,007
SWIFT cost - 7,663,074 - 7,663,074
Business promotion and development 76,761,080 34,250,516 76,761,080 34,250,516
Books, news papers and periodicals 652,924 148,861 652,924 148,861
Donation and subscription 40.2 435,735,033 236,669,080 435,735,033 236,669,080
Government Levy, VAT and excise duty 6,330,619 1,895,285 6,330,619 1,895,285
Other operational loss 710,236 4,484,559 710,236 4,484,559
Staff training and development 37,000,556 8,596,578 37,000,556 8,596,578
Staff liveries 21,312 185,940 21,312 185,940
Staff recruitment 4,578,608 9,478,227 4,578,608 9,478,227
Salaries and allowance - outsourcing staff 754,643,686 414,478,552 754,643,686 414,478,552
Staff sales incentives 646,306,662 398,905,613 646,306,662 398,905,613
Bank charges 21,415,936 21,638,477 21,415,936 21,638,477
Interest expense on lease liability as per IFRS 16 427,409,866 240,975,386 266,790,141 157,503,682
Documentation charges - CIB 19,931,570 7,571,438 19,931,570 7,571,438
IT enabled services 674,053,553 566,345,069 674,053,553 566,345,069
Security guard cost 211,467,465 212,770,875 211,467,465 212,770,875
Commission paid - vendor 12,224,564 9,798,827 12,224,564 9,798,827
Cash carrying charges 66,639,796 62,792,683 66,639,796 62,792,683
Spare parts expense 91,291,533 74,519,716 91,291,533 74,519,716
Archiving expense 32,535,418 30,451,572 32,535,418 30,451,572
Covid prevention expense 4,931,452 16,285,221 4,931,452 16,285,221
Miscellaneous 9,767,130 7,955,463 9,767,130 7,955,463
Other expenses of subsidiaries 40.3 647,212,755 712,008,189 - -
4,521,771,876 3,423,433,563 3,713,939,396 2,627,953,670
Less: Elimination of inter unit/company transactions 47,036,160 40,406,371 - -
4,474,735,716 3,383,027,192 3,713,939,396 2,627,953,670
97
In Taka
Particulars Note
2022 2021 2022 2021
40.1 Bangladesh Bank, vide BRPD circular letter no. 28 dated 26 July 2022 and subsequent clarification, instructed all commercial banks to bring down the fuel expenses by 10% and electricity expenses
by 12.5% from the budgeted amount in 2nd half of 2022 considering the global economic crisis arising from Covid-19 and Russia-Ukraine war. The bank has taken following initiatives to bring down
the fuel and electricity costs:
i) Strict maintenance of office time aligned with day light and switching off all lights and AC after office time;
ii) Power down computers and other office equipment at the end of the day;
iii) Maximum use of day lights clearing all obstacles behind windows;
iv) Minimizing use of office vehicle and auto switch-off engine while in traffic;
v) Continuous monitoring of using lights and minimizing where possible.
The progress status has been summarized below:
SL Particulars Budget-H2, 2022 Actual-H2, 2022 Saving in exp. Savings in %
1 Fuel expense 31,927,719 26,659,391 5,268,328 17%
2 Power and electricity expenses 134,400,000 103,304,166 31,095,834 23%
40.2 The donation and subscription include the following:
i) Out of total CSR expense BDT 188,198,573 (net of income tax) made from the foreign exchange gain arisen during May and June 2022 according to Bangladesh Bank directive; BDT 48,528,973
as part of regular CSR expense to various CSR activities and remaining CSR amount of BDT 140,000,000 spent from discount on SME insurance premium as per BRPD instruction;
ii) Subscription of BDT 59,007,488 made for various sponsorship and membership held by BRAC Bank;
40.3 Other expenses of subsidiaries
bKash Limited 399,570,392 289,758,928
BRAC SAAJAN Exchange Limited 31,077,654 205,392,180
647,212,755 712,008,189
41 Share of profit of associates
BRAC IT Services Limited 4,860,182 3,742,052
4,860,182 3,742,052
98
In Taka
Particulars Note
2022 2021 2022 2021
42 Provisions
Provision for loans and advances
Specific provision charged during the year 2,172,220,677 3,178,139,884 2,179,490,076 3,018,099,324
Recovery of written off bad debts (809,572,845) (707,517,594) (809,572,845) (707,517,594)
Specific provision (net off recovery) for the year 1,362,647,832 2,470,622,290 1,369,917,231 2,310,581,730
General provision charged during the year 575,618,832 490,317,074 575,618,832 490,317,074
Special provision Covid-19 charged during the year - 10,077,106 - 10,077,106
Total provision for loans and advances 1,938,266,664 2,971,016,470 1,945,536,063 2,810,975,910
Diminution in value of Investments 20,539,430 (74,000,000) 20,539,430 (74,000,000)
Off Balance Sheet items 204,740,420 251,500,000 204,740,420 251,500,000
Other provisions:
Other assets 16,741,298 70,093,002 12,443,801 65,866,351
Interest receivable from loan 7,128,770 - 7,128,770 -
2,187,416,582 3,218,609,472 2,190,388,484 3,054,342,261
43 Provision for taxation
Current tax expense/ (income)* 4,280,691,722 3,737,018,428 3,765,699,754 3,467,399,481
Deferred tax expense/ (income) (Net) (1,138,637,890) (1,479,828,777) (590,012,891) (1,124,778,486)
Total provision for Taxation 3,142,053,832 2,257,189,651 3,175,686,863 2,342,620,995
* Current tax includes the reversal of surplus tax provision for 2010-2017 of BDT 14 crore based on latest assessment order from tax office.
43.1 Reconciliation of effective tax rate
2022 (Standalone) 2021 (Standalone)
Particulars
% Taka % Taka
Profit before income tax as per profit and loss account 8,938,860,436 7,889,551,559
Income tax as per applicable tax rate 37.50% 3,352,072,664 37.50% 2,958,581,835
Factors affecting the tax charge for current year
Inadmissible expenses 15.77% 1,409,234,884 51.36% 4,051,715,522
Admissible expenses in the current year (i.e. write-off etc.) -9.33% (833,857,792) -35.26% (2,781,861,936)
Tax exempted income 0.00% - -1.64% (129,568,012)
Tax savings from reduced tax rates for dividend 0.00% - -0.40% (31,467,927)
Tax loss/(savings) from reduced tax rates for capital gain 0.00% - 0.00% -
Reversal of previous years' excess tax (2010 - 2017) -1.57% (140,000,000) -7.60% (600,000,000)
Effect of deferred tax -6.84% (611,762,892) -14.26% (1,124,778,487)
Total income tax expenses 35.53% 3,175,686,864 29.69% 2,342,620,995
99
In Taka
Particulars Note
2022 2021 2022 2021
44 Cash and cash equivalents
Cash in hand (including foreign currency) 4.1 11,918,067,777 9,207,161,626 11,822,688,624 8,424,680,663
Balance with Bangladesh Bank and its agents banks (including foreign
4.2 19,953,525,473 14,252,262,804 19,953,525,473 14,252,262,804
currency)
Balance with other banks and financial institutions 5 52,951,344,277 78,261,312,910 16,255,534,724 19,880,951,145
Money at call and on short notice 6 6,826,376,000 3,500,000,000 6,826,376,000 3,500,000,000
Prize Bond 7.1 1,527,900 1,280,800 1,527,900 1,280,800
91,650,841,427 105,222,018,140 54,859,652,721 46,059,175,412
45 Receipts from other operating activities
Miscellaneous income 144,733,426 35,137,230 144,733,426 35,137,230
Capital gain (loss) on shares & mutual funds 30,512,410 228,515,315 30,512,410 228,515,315
Profit share from other banks 107,150,999 107,157,532 107,150,999 107,157,532
Capital gain (loss) on government securities 757,187,142 345,451,894 757,187,142 345,451,894
Other receipts of subsidiaries (79,218,319) (118,708,350) - -
953,966,643 592,067,664 1,033,184,962 710,776,014
46 Payment for other operating activities
Rent, taxes, insurance, electricity etc. 484,199,987 464,325,834 484,199,987 464,325,834
Audit fees 1,840,000 1,840,000 1,840,000 1,840,000
Directors fees and expenses 2,552,000 2,437,600 2,552,000 2,437,600
Repair and maintenance 588,292,005 524,909,515 588,292,005 524,909,515
Other expenses 4,284,132,440 2,593,818,978 4,284,132,440 2,593,818,978
Legal expenses 24,470,575 10,260,637 24,470,575 10,260,637
Other payments of subsidiaries 329,446,015 451,880,616 - -
5,714,933,022 4,049,473,180 5,385,487,007 3,597,592,564
100
In Taka
Particulars Note
2022 2021 2022 2021
47 Reconciliation of net profit with cash flows from operating activities (standalone basis)
Profit before tax as per profit and loss account 8,938,860,436 7,889,551,559
Adjustment for non-cash items:
Provision for loans and advances 2,755,108,908 3,518,493,504
Provision for diminution in value of investments 20,539,430 (74,000,000)
Provision for off balance sheet items 204,740,420 251,500,000
Provision for other assets 19,572,571 65,866,351
Depreciation of property plant and equipment 1,792,138,336 1,732,111,456
Foreign exchange gain/(loss) 208,678,200 486,268,924
Profit on sale of fixed assets (15,414,283) (3,798,917)
Increase/decrease in operating assets & liabilities:
Other assets (1,829,975,159) 136,271,733
Proceeds from issuance of affordable housing bond 4,751,000,000 -
Other liabilities 1,142,489,175 (532,139,845)
Income tax paid (4,642,899,233) (2,557,956,724)
Net cash flows from operating activities as per cash flow statement 24,999,023,216 1,165,731,717
48 Earnings per share (EPS)

Profit after taxation 6,121,996,724 4,652,600,294 5,763,173,573 5,546,930,564
Profit/(loss) attributable to non controlling interest 108,023,844 (812,072,386) - -
Profit attributable to ordinary shareholders of BRAC Bank Limited 6,013,972,880 5,464,672,680 5,763,173,573 5,546,930,564
Weighted average number of shares outstanding 1,496,585,328 1,496,585,328 1,496,585,328 1,496,585,328
4.02 3.65 3.85 3.71
49 Net asset value (NAV) per share
Net asset value attributable to shareholders of parent 61,153,627,729 57,187,474,350 58,390,554,773 54,419,471,131
Number of ordinary share outstanding at the end of the year 1,496,585,328 1,496,585,328 1,496,585,328 1,496,585,328
40.86 38.21 39.02 36.36
50 Net operating cash flow per share (NOCFPS)

Net operating cash flow 37,627,065,225 3,725,014,156 24,999,023,216 1,165,731,717
Number of ordinary share outstanding at the end of the year 1,496,585,328 1,496,585,328 1,496,585,328 1,496,585,328
25.14 2.49 16.70 0.78
101
51 General Disclosures
51.1 Audit Committee
An audit committee was constituted by the Board of Directors of BRAC Bank Limited in its 23rd meeting held on 02 March 2003. As on 31 December 2022, the Audit Committee as under:
Status with the

Sl No Name of the director Status with the Bank Educational qualification
committee
01 Ms. Farzana Ahmed Independent Director Chairman MA (Hons) Philosophy, Politics, Economics & Chartered Accountant
B.Sc. (Hons.) Management and M.Sc. Management from London School of Economics and
02 Ms. Fahima Choudhury Independent Director Member
Political Science, the United Kingdom
03 Dr. Zahid Hussain Independent Director Member Ph.D. in Economics, Boston University
During the year ended 31 December 2022, the Audit Committee of the Board conducted 08 (Eight) meeting in which among others, the following issues were discussed:
• Risk Based Audit Plan 2023
• Revised Manual of Audit Procedures and Revised Audit Charter 2022
• Revised Audit Policy, Compliance Policy, Monitoring Policy and Internal Control & Compliance Policy 2022
• Concurrent Audit Policy 2022
• Year Summary of Internal Audit Observations for the year 2021
• Overall effectiveness of Internal Control System.
• Fraud/forgeries and operational loss report
• Annual Health Report of BRAC Bank Limited 2021
• Management Report of BRAC Bank Limited for the year ended 31 December 2021
• Summary of Audit Observations of Branch, SKB, SMESC, Departments/Division and IT Departments 2022
• Compliance Status 2020 and 2021
51.2 Particulars of Board of Directors

i) Name of Directors and the entities in which they have interest as on 31 December 2022:
Sl No Name of director Status with the Bank Name of the firms/companies in which they have interest Educational qualification
1 Dr. Ahsan H. Mansur Chairman Policy Research Institute of Bangladesh (PRI) Ph.D in Economics, University of Western Ontario,
Independent Director Walton Hi-Tech Industries Ltd Canada, M.A. Economics, McMaster University, Canada,
Water Garden Resort and Spa M.A. in Economics, University of Dhaka, Bangladesh
2 Mr. Asif Saleh Nominated Director BRAC IT Services Limited
(Nominated by BRAC) BRAC Net Limited
Institute of Informatics and Development (IID)
Edotco Bangladesh Co. Ltd.
BRAC Kaiyachara Tea Company Ltd Masters of Business Administration, New York University,
BRAC OSIRIS Impact Ventures Ltd. Stern School of Management
BRAC Kumon
102
Masters of Business Administration, New York University,
Stern School of Management
Affordable Health Care Trust
BRAC Probashbondhu Ltd
bKash Limited
3 Ms. Fahima Choudhury Independent Director Ogilvy & Mather Communications Pvt. Ltd
Adcomm Ltd.
Adcomm Holdings Ltd.
Aktivision Advertising Ltd
Graphic People
Nazimgarh Resorts Ltd B.Sc. (Hons.) Management and M.Sc. Management from
Northbrook Consultants Ltd London School of Economics and Political Science, the
Screaming Girl Production Ltd. United Kingdom
Software People
BRAC EPL Investments limited
BRAC EPL Stock Brokerage Limited.
Northern Resort
bKash Limited
4 Ms. Farzana Ahmed Independent Director Kids Tutorial MA (Hons) Philosophy, Politics, Economics & Chartered
Accountant
5 Dr. Zahid Hussain Independent Director BRAC EPL Stock Brokerage Limited
BRAC EPL Investment Limited Ph.D. in Economics, Boston University
World Bank, Bangladesh
6 Mr. Meheriar M Hasan Nominated Director Toyota Financial Savings Bank
Master of Science in Finance, USA, BA in Economics
(Nominated by BRAC) bKash Limited
7 Mr. Shameran Bahar Abed Nominated Director bKash Limited
BA in Economics, USA, Bar-at-Law, UK
BRAC OSIRIS Impact Ventures Ltd.
8 Dr. Mustafa Kamal Mujeri Independent Director Institute for inclusive Finance and Development (InM) Ph.D. in Economics from McMaster University, Canada
M.A in Economics from McMaster University
9 Mr. Faruq Mayeenuddin Ahmed Independent Director N/A MSS in Economics, University of Dhaka
10 Mr. Salek Ahmed Abul Masrur N/A MBA ,The University of Tennessee, USA, BBA The Tri-State
Independent Director
University of Indiana.
11 Mr. Selim R.F. Hussain Managing Director & CEO Industrial and Infrastructure Development Finance Company
(IIDFC)
BRAC EPL Investments Ltd.
BRAC EPL Stock Brokerage Ltd.
MBA (IBA), University of Dhaka
bKash Limited
BRAC IT Services Limited
BRAC Sajaan Exchange Ltd
Association of Bankers, Bangladesh
103
The bank carried out transactions with related parties in the normal course of business on an arms length basis. As on 31 December 2022, the bank had following transactions with the 'Related
Party/(ies)' as defined in the BRPD circulars no. 14 issued by the Bangladesh Bank on 25 June 2003.
Details of transactions with related parties can be found at Annexure-J Taka
ii) Significant contracts where bank is a party and wherein Directors have interest: Nil
iii) Shares issued to Directors and executives without consideration or exercisable at discount Nil
iv) Lending Policies to related parties:
Lending to related parties is effected as per requirement of section 27(1) of the Banking Companies Act ,1991. Nil
v) Loan and advances to Directors and subsidiaries: 989,873,937
Classification Status Unclassified
vi) Business other than Banking business with any related concern of the Directors as per Section 18(2) of the Banking Companies Nil
vii) Investment in the Securities of Directors and their related concern Nil
51.3 Claim not Acknowledged as Debt
There was no claim against the Bank not acknowledged as debt as on 31 December 2022.
51.4 Number of Employees
The number of employees including contractual engaged for the whole year or part there of who received a total yearly remuneration of Tk. 36,000 or above were 7,863 (2021: 7,619).
51.5 Events after the Balance Sheet Date
A. The Board of Directors in its 343rd Board meeting held on 11 April 2023 has proposed total 15% dividend (Cash dividend: 7.50% and stock dividend: 7.50%) subject to the approval of the
shareholders at the next Annual General Meeting.
sd/-
________________________ sd/-
_________________ sd/-
__________________ sd/-
__________________
Managing Director and CEO Director Director Chairman
104
Annexure - A
Highlights on the overall Activities
Amount in Taka unless otherwise specified
Particulars Note
2022 2021 2022 2021
Paid-up capital 18.2 14,965,853,280 13,921,723,990 14,965,853,280 13,921,723,990
Total capital including general provisions 18.8 73,680,623,604 68,878,604,871 49,118,601,214 44,131,714,066
Capital surplus 18.8 26,140,806,772 26,718,367,531 5,389,635,623 5,711,756,543
Total assets 655,937,320,087 527,912,923,582 563,238,978,302 449,084,124,881
Total deposits 16 447,058,816,329 364,329,900,482 384,466,775,242 314,590,914,520
Total loans and advances 8 412,084,750,584 322,135,188,439 410,676,406,960 321,212,230,987
Total contingent liabilities and commitments 25 165,844,601,581 134,196,808,993 165,844,601,581 134,196,808,993
Income from investments 29 7,585,930,404 7,142,434,925 5,184,549,425 5,780,677,077
Profit after tax and provisions 6,121,996,724 4,652,600,294 5,763,173,573 5,546,930,564
Amount of classified loans during the current year 8.9 16,493,938,006 13,747,867,323 15,268,631,102 12,522,560,419
Provision kept against classified loans 17.1 10,613,210,514 10,179,609,769 9,401,374,744 8,960,504,600
Provisions surplus/deficit 8.11 1,945,401,964 1,139,138,134 1,945,401,964 1,139,138,134
Interest earning assets 632,686,260,328 507,237,092,081 547,340,438,588 434,883,338,336
Non-interest earning assets 23,251,059,759 20,675,831,501 15,898,539,714 14,200,786,545
Credit deposit ratio (Loans and Advances/Deposits)* - - 79.94% 81.86%
Percentage of classified loans against total loans and advances 4.00% 4.27% 3.72% 3.90%
NPL coverage ratio (incl. GP) 110% 121% 111% 124%
Total Capital to Risk-weighted Asset Ratio 19.37% 20.42% 14.04% 14.36%
Cost of fund 4.33% 4.16% 4.83% 4.49%
Cost to income ratio 70% 68% 58% 53%
Return on investment (ROI) [PAT/(Shareholders equity+Borrowings)] 4.78% 5.79% 4.69% 6.04%
Return on assets (ROA) [PAT/Average assets] 1.02% 1.11% 1.14% 1.31%
Return on equity (ROE) [PAT/Average shareholders equity] 10.16% 10.38% 10.22% 11.00%
Earnings per share [previous years figure restated] 48 4.02 3.65 3.85 3.71
Net income per share [(PAT-Dividend on preference share/No. of Ordinary Shares)]
4.02 3.65 3.85 3.71
[previous years figure restated]
Price earning ratio (Market price per share/EPS) - - 10.00 13.88
Net Asset Value per Share (NAV) [(Shareholders equity- Preference Share)/No. of
49 40.86 38.21 39.02 36.36
Ordinary Share] [previous years figure restated]
Net Operating Cash Flow Per Share [previous years figure restated] 50 25.14 2.49 16.70 0.78
* Credit deposit ratio has been computed as per Bangladesh Bank guideline.
105
Annexure B-1
BRAC Bank Limited
Statement of outstanding unreconciled entries in nostro accounts (foreign)
Nostro Account represents outstanding transactions (net) originated but yet to be responded at the Balance Sheet date. However, the status of unresponded entries as at 31 December 2022 is given below:
Amount in USD
As per Local Book As per Correspondents' Book
SL No Period of Unreconciliation Debit Entries Credit Entries Debit Entries Credit Entries
No. Amount No. Amount No. Amount No. Amount

01 Up-to 3 months 306 1,862,242 69 16,370,163 39 18,902,906 720 41,224,756
02 More than 03 months but less than 06 months - - 1 635 - - 40 585,830
03 More than 06 months but less than 09 months - - 1 2,953.14 - - 12 403,325
04 More than 09 months but less than 12 months - - - - - - 7 106,199
05 More than 12 months - - - - - - 2 65,559
Total 306 1,862,242 71 16,373,751 39 18,902,906 781 42,385,668
01 Up-to 3 months 509 17,105,576 253 16,159,227 69 3,592,222 804 31,786,404
02 More than 03 months but less than 06 months - - 2.00 42,215.41 - - 79 328,671
03 More than 06 months but less than 09 months - - 1.00 2,547.91 - - 6 25,719
05 More than 12 months - - - - - - 1 2,103
Total 509 17,105,576 256 16,203,990 69 3,592,222 893 32,150,154
All unadjusted entries are subsequently adjusted on regular basis.
106
Annexure B-2
BRAC Bank Limited
Statement of outstanding unreconciled entries in nostro accounts (local)
Amount in Taka
01 Up-to 3 months 12 2,606,294 - - 208 11,116,157 31 12,102,911
02 More than 03 months but less than 06 months 2 361,270 4 403 7 2,006,046 11 1,969,898
04 More than 09 months but less than 12 months - - - - - - - -
05 More than 12 months - - 27 734,389 24 2,118,119 18 847,269
Total 14 2,967,564 31 734,792 239 15,240,322 63 14,940,982
01 Up-to 3 months 4 546,434 - - 75 11,881,903 6 10,296,527
02 More than 03 months but less than 06 months - - - - - - - -
03 More than 06 months but less than 09 months 1 4,000 - - - - 1 79,713
05 More than 12 months - - 27 734,389 23 2,115,119 16 347,269
Total 5 550,434 27 734,389 98 13,997,022 24 11,143,796
107
Annexure - C
BRAC Bank Limited
Balance with other banks-outside Bangladesh (Nostro Account)
Amount in Taka
2022 2021
Name of Bank Currency A/C Type Amount in foreign Exchange Amount in foreign
Equivalent Taka Exchange rate Equivalent Taka
currency rate currency
DBU balance:
Standard Chartered Bank, New York, USA USD CD 6,274,971 103.30 648,185,631 5,803,452 85.80 497,936,217
Standard Chartered Bank, United Kingdom GBP CD 867,336 124.43 107,923,960 138,528 115.70 16,027,822
Standard Chartered Bank, Frankfurt, Germany EUR CD 3,345,369 110.01 368,010,970 147,482 97.12 14,323,040
Mashreq Bank, New York, USA USD CD 1,450,661 103.30 149,848,892 815,183 85.80 69,942,687
Bank of Tokyo Mitsubishi UFJ Ltd JPY CD 26,540,649 0.77 20,512,994 8,019,542 0.75 5,975,580
ICICI Bank Limited, Mumbai, India USD CD 722,553 103.30 74,637,602 81,145 85.80 6,962,245
Zuercher Kantonal Bank, Switzerland CHF CD 121,981 111.74 13,630,753 39,709 93.71 3,721,299
Commerz Bank AG, Germany (USD) USD CD 62,605 103.30 6,466,957 22,244 85.80 1,908,554
Commerz Bank AG, Germany (EURO) EUR CD 135,632 110.01 14,920,292 (749,663) 97.12 (72,805,071)
Commerz Bank, Frankfurt, Germany (GBP) GBP CD 50 124.43 6,254 50 115.70 5,815
JP Morgan Chase Bank, New York, USA USD CD 6,892,723 103.30 711,997,619 3,863,054 85.80 331,450,001
HDFC Bank Limited, India USD CD 2,490,389 103.30 257,249,753 226,802 85.80 19,459,599
Habib Bank Limited, Pakistan USD CD - 103.30 - 20,866 85.80 1,790,293
JP Morgan Chase Bank, Sydney (AUD) AUD CD 119,146 69.44 8,273,641 9,713,312 62.33 605,425,151
AB Bank Limited, Mumbai, India USD CD 435,059 103.30 44,940,238 193,907 85.80 16,637,248
AXIS Bank Limited, Kolkata (ACU) USD CD 552,652 103.30 57,087,322 516,628 85.80 44,326,693
Abu Dhabi Commercial Bank (AED) AED CD 184,696 28.13 5,194,973 265,268 23.36 6,196,415
Kookmin Bank, Seoul, South Korea (USD) USD CD 58,466 103.30 6,039,326 72,116 85.80 6,187,529
Citi Bank N.A., New York, USA USD CD 397,783 103.30 41,089,751 289,565 85.80 24,844,680
Shanghai Pudong Development Bank Co. Ltd, China (CNY) CNY CD 135,569 14.84 2,011,473 60,410 13.46 813,173
DBS Bank Ltd, Singapore (SGD) SGD CD 226,591 76.60 17,357,195 212,688 63.41 13,486,513
Punjab National Bank, Kolkata (USD) USD CD 1,121,697 103.30 115,867,928 353,276 85.80 30,311,059
Al Rajhi Bank, Riyadh (SAR) SAR CD 116,019 27.47 3,187,340
Meezan Bank Limited, Gtb Karachi, ACU (USD) USD CD 687,200 103.30 70,985,659
2,745,426,523 1,644,926,542
OBU balance:
JP Morgan Chase Bank, New York USD CD 6,799,986 103.30 702,418,166 1,612,754 85.80 138,374,289
JP Morgan AG, Frankfurt, Germany EUR CD 233,019 109.71 25,564,909 4,373 97.27 425,313
JP Morgan Chase Bank, NA, London GBP CD 11,183 124.32 1,390,286 12,609 115.72 1,459,054
729,373,361 140,258,656
Total 3,474,799,884 1,785,185,198
108
Annexure - D
BRAC Bank Limited
Investment in shares, mutual funds and quoted bonds
Amount in Taka
Sl. Face No. of Cost of Average Total market
Name of the company Industry Market Price
no value shares holding costing price value (Tk)
Quoted ordinary shares
1 Bata Shoe Company (Bangladesh) Limited Tannery Industries 10 86,193 91,771,631 1,064.72 952.30 82,081,594
2 Berger Paints Bangladesh Ltd. Miscellaneous 10 360,946 614,266,461 1,701.82 1,722.60 621,765,580
3 Eastern Bank Limited Bank 10 1,575,243 44,926,754 28.52 31.80 50,092,727
4 Grameenphone Limited Telecommunication 10 3,100,427 1,000,947,718 322.84 286.60 888,582,378
5 Linde Bangladesh Limited Fuel & Power 10 98,165 128,911,193 1,313.21 1,397.70 137,205,221
6 Marico Bangladesh Limited Pharmaceuticals & Chemicals 10 494,626 1,069,411,830 2,162.06 2,421.50 1,197,736,859
7 Renata Limited Pharmaceuticals & Chemicals 10 127,981 129,022,131 1,008.14 1,217.90 155,868,060
8 Singer Bangladesh Limited Engineering 10 2,039,109 355,561,149 174.37 151.90 309,740,657
9 Square Pharmaceuticals Limited Pharmaceuticals & Chemicals 10 6,071,734 1,244,188,214 204.91 209.80 1,273,849,793
4,679,007,081 4,716,922,869
Quoted corporate Bond
1 APSCL redeemable coupon bearing bond Corporate Bond 5,000 100,000 500,000,000 5,000.00 5,500.00 550,000,000
500,000,000 550,000,000
Unquoted shares and mutual funds

1 Industrial and Infrastructure Development Finance Co. Limited (IIDFC) 10 10,449,259 29,683,820
2 Central Depository Bangladesh Limited (CDBL) 10 2,284,721 6,277,770
3 The Bangladesh Rating Agency Limited (BRAL) 100 106,717 10,671,700
4 Blue Wealth 1st Balance Fund 10 2,500,000 25,000,000
5 EDGE Al-Amin Shariah Consumer Fund 10 2,500,000 25,000,000
6 EDGE High Quality Income Fund 10 2,500,000 25,000,000
7 Ekush Growth Fund 10 2,500,000 25,000,000
8 HFAML Shariah Unit Fund 10 2,000,000 20,000,000
9 IDLC Balanced Fund 10 4,511,370 45,113,700
10 VIPB Accelerated Income Unit Fund 10 4,600,000 51,198,000
11 VIPB Growth Fund 10 2,014,000 20,140,000
12 VIPB NLI 1ST Unit Fund 10 7,218,585 72,185,850
13 VIPB SEBL 1st Unit Fund 10 13,323,467 133,234,670
488,505,510
Preference shares
1 Union Capital Preference Share 2,500,000 1 2,500,000
2,500,000
109
Annexure - E
BRAC Bank Limited
Schedule of Fixed Assets
Amount in Taka
Cost Depreciation Written-down
Particulars Opening Addition/ Disposals/ Total balance Opening Charge Disposals/ Total balance value as at
balance as on Revaluation Adjustments as at 31 balance as on during Adjustments as at 31 31 December
01 January 2022 during the year during the year December 2022 01 January 2022 the year during the year December 2022 2022
Property, plant & equipments (PPEs)
Land 527,275,400 - - 527,275,400 - - - - 527,275,400
Office floor space 4,034,334 - - 4,034,334 923,190 100,858 - 1,024,048 3,010,286
Furniture & fixture 2,140,914,383 117,645,818 87,738,105 2,170,822,096 1,530,914,211 139,671,303 86,961,413 1,583,624,101 587,197,995
Office equipments 1,344,953,601 84,716,918 68,502,007 1,361,168,512 1,204,097,640 81,295,046 68,478,599 1,216,914,087 144,254,425
IT Hardware 3,049,688,043 602,165,146 376,349,158 3,275,504,031 2,303,039,328 393,579,196 376,152,265 2,320,466,259 955,037,772
Motor vehicles 354,296,880 68,200,910 - 422,497,790 286,197,878 52,113,021 - 338,310,899 84,186,891
Right of use assets (RoU) 5,489,602,469 811,886,704 198,464,994 6,103,024,179 1,339,172,702 777,297,844 197,223,267 1,919,247,279 4,183,776,900
Capital expenditure work in progress 251,206,513 502,011,558 546,098,849 207,119,222 - - - - 207,119,222
Sub-total 13,161,971,623 2,186,627,053 1,277,153,112 14,071,445,564 6,664,344,949 1,444,057,267 728,815,544 7,379,586,672 6,691,858,891
Intangible assets:
With definite useful lives:
IT Software 2,322,117,221 478,328,146 - 2,800,445,367 1,364,876,496 348,081,068 - 1,712,957,564 1,087,487,802
Sub-total 2,322,117,221 478,328,146 - 2,800,445,367 1,364,876,496 348,081,068 - 1,712,957,564 1,087,487,802
As at 31 December 2022 15,484,088,844 2,664,955,199 1,277,153,112 16,871,890,930 8,029,221,445 1,792,138,336 728,815,544 9,092,544,237 7,779,346,693
Amount in Taka
Cost Written-down
Opening Addition/ Disposals/ Total balance Opening Charge Disposals/ Total balance value as at
Particulars
balance as on Revaluation Adjustments as at 31 balance as on during Adjustments as at 31 31 December
01 January 2021 during the year during the year December 2021 01 January 2021 the year during the year December 2022 2022
Property, plant & equipments (PPEs)
Land 527,275,400 - - 527,275,400 - - - - 527,275,400
Leasehold Building 4,034,334 - - 4,034,334 822,332 100,858 - 923,190 3,111,144
Furniture & fixture 2,096,550,341 58,151,911 13,787,869 2,140,914,383 1,395,740,435 148,736,943 13,563,167 1,530,914,211 610,000,172
Office equipments 1,307,461,739 48,474,903 10,983,041 1,344,953,601 1,120,463,136 94,567,471 10,932,967 1,204,097,640 140,855,961
IT Hardware 2,900,091,204 171,197,743 21,600,904 3,049,688,043 1,970,565,211 353,862,417 21,388,300 2,303,039,328 746,648,715
Motor vehicles 354,296,880 - - 354,296,880 221,679,496 64,518,382 - 286,197,878 68,099,002
Right of use assets (RoU) 4,374,375,108 2,600,924,979 1,485,697,618 5,489,602,469 1,465,505,184 762,397,055 888,729,537 1,339,172,702 4,150,429,767
Capital expenditure work in progress 402,817,173 108,642,199 260,252,859 251,206,513 - - - - 251,206,513
Sub-total 11,966,902,179 2,987,391,735 1,792,322,291 13,161,971,623 6,174,775,794 1,424,183,126 934,613,971 6,664,344,949 6,497,626,674
Intangible assets:
With definite useful lives:
IT Software 2,093,396,465 228,720,756 - 2,322,117,221 1,056,948,166 307,928,330 - 1,364,876,496 957,240,725
Sub-total 2,093,396,465 228,720,756 - 2,322,117,221 1,056,948,166 307,928,330 - 1,364,876,496 957,240,725
As at 31 December 2021 14,060,298,644 3,216,112,491 1,792,322,291 15,484,088,844 7,231,723,960 1,732,111,456 934,613,971 8,029,221,445 7,454,867,399
110
Annexure-F
BRAC Bank Limited
Statement of Tax Position
Amount in Taka
Accounting Assessment Gross tax Adjustment of Net tax provision Tax as per latest (Short)/Excess Advance tax as Present status
year year provision in excess/deficit in financial assessment provision per assessment
financial provision during Statements order
statements 2022
Assessment in progress and filed appeal before Honorable High
2009 2010-2011 1,140,000,000 - 1,140,000,000 1,226,332,530 (86,332,530) 1,225,978,580
Court against the Order of The Taxes Appellate Tribunal
Assessment in progress and filed appeal before The Honorable
2010 2011-2012 1,416,240,000 - 1,416,240,000 1,316,974,555 99,265,445 1,228,668,951 High Court Division against the order of The Taxes Appellate
Tribunal
2011 2012-2013 1,460,000,000 - 1,460,000,000 1,535,641,921 (75,641,921) 1,256,758,569 High Court Division against the order of The Taxes Appellate
Tribunal
Tribunal
Tribunal
Appeal in progress before The Honorable High Court Division
2014 2015-2016 2,097,475,597 - 2,097,475,597 1,916,762,068 180,713,529 1,250,930,480
against the order of The Taxes Appellate Tribunal
Tribunal
Tribunal
Tribunal
Appeal filled to Commissioner Taxes of Appeal against the DCT
2018 2019-2020 2,523,031,538 - 2,523,031,538 2,601,281,979 (78,250,441) 2,459,662,676
Assessment Order
2019 2020-2021 3,718,904,812 - 3,718,904,812 3,432,353,978 286,550,834 3,432,353,978 Tax return submitted for the assessment
2020 2021-2022 2,728,499,267 (191,123,342) 2,537,375,925 2,466,141,523 71,234,402 2,174,170,846 Tax return submitted for the assessment
2021 2022-2023 4,067,399,481 (500,000,000) 3,567,399,481 3,899,871,425 (332,471,944) 3,771,290,998 Tax return submitted for the assessment
2022 2023-2024 3,905,699,754 (140,000,000) 3,765,699,754 Not yet due to submit Tax Return
111
Annexure-G
BRAC Bank Limited
Statement of Segment Reporting
Amount in Taka
Particulars SME Retail Corporate Treasury Total
Total external revenue 14,800,252,361 1,492,851,642 3,449,646,545 6,828,159,486 26,570,910,034

Inter segment revenue /(expenses) (6,887,543,453) 6,230,297,901 1,866,871,065 (1,209,625,513) -
Total segment revenue 7,912,708,908 7,723,149,543 5,316,517,610 5,618,533,973 26,570,910,034
Total segment operating expenses 6,909,617,085 6,292,696,657 1,661,389,682 577,957,690 15,441,661,114
Segment operating profit/(loss) 1,003,091,823 1,430,452,886 3,655,127,928 5,040,576,283 11,129,248,920

Amount in Taka
Particulars SME Retail Corporate Treasury Total
Total external revenue 11,628,176,923 1,508,130,376 4,199,827,507 6,027,755,292 23,363,890,098

Inter segment income /(expenses) (4,051,915,294) 5,224,979,657 418,513,593 (1,591,577,956) -
Total segment revenue 7,576,261,629 6,733,110,033 4,618,341,100 4,436,177,336 23,363,890,098
Total segment operating expenses 5,395,517,168 5,285,573,794 1,415,952,685 322,952,631 12,419,996,278
Segment operating profit/(loss) 2,180,744,461 1,447,536,239 3,202,388,415 4,113,224,705 10,943,893,820
Segmental assets and liabilities

The necessary information regarding assets and liabilities of operating segments (excluding subsidiaries) are not separable and individually identifiable and so the assets and liabilities of the respective segments
have not been presented here.
112
BRAC Bank Limited
Off-shore Banking Units
Financial Statements
as at and for the year ended 31 December 2022
Annexure - H
Balance Sheet
2022 2021
Particulars Note
USD Taka USD Taka
PROPERTY AND ASSETS
Cash - - - -
Cash in hand
(Including foreign currency) - - - -
Balance with Bangladesh Bank and its agent
bank(s) - - - -
Balance with other banks and financial
institutions 3 23,060,934 2,382,125,360 69,634,716 5,974,658,656
Inside Bangladesh - - - -
Outside Bangladesh 23,060,934 2,382,125,360 69,634,716 5,974,658,656
Money at call on short notice - - - -

Investments - - - -
Government - - - -
Others - - - -
Loans and advances 4 478,265,314 49,403,372,046 402,592,989 34,542,478,506

Loans, cash credit, overdrafts etc. 457,081,025 47,215,098,555 375,658,784 32,231,523,671
Small and medium enterprises 1,312,019 135,527,658 1,712,685 146,948,408
Bills purchased and discounted 19,872,270 2,052,745,833 25,221,520 2,164,006,427
Fixed assets including premises, furniture and
fixtures - - - -
Other assets 5 9,795,692 1,005,074,422 9,272,615 795,603,813
Total Property and Assets 511,121,940 52,790,571,828 481,500,320 41,312,740,975

Liabilities
Borrowings from other banks, financial
institutions and agents 6 447,328,736 46,207,716,494 422,378,794 36,240,100,482
Money at call and short notice - - - -
Deposits and other accounts 7 21,650,219 2,236,402,572 9,716,023 833,634,780

Current accounts and other accounts 626,567 64,722,483 809,354 69,442,595
Bills payable - - - -
Savings deposits - - - -
Fixed deposits 20,300,041 2,096,933,295 8,633,540 740,757,724
Other deposits 723,611 74,746,794 273,129 23,434,461
Other liabilities 8 48,012,922 4,214,678,041 54,361,285 4,496,927,343

Total Liabilities 516,991,877 52,658,797,107 486,456,102 41,570,662,605
Capital and Shareholders' Equity

Paid up share capital - - - -
Statutory reserve - - - -
Revaluation reserve - - - -
Foreign currency translation reserve - 329,930,810 - 12,610,122
Surplus in profit and loss account/Retained
earnings 9 (5,869,937) (198,156,089) (4,955,782) (270,531,752)
Total shareholders' equity (5,869,937) 131,774,721 (4,955,782) (257,921,630)
Total Liabilities and Shareholders' Equity 511,121,940 52,790,571,828 481,500,320 41,312,740,975
114
Continuation of Annexure - H
Balance Sheet
2022 2021
Particulars Note
USD Taka USD Taka
Acceptances and endorsements 10,857,616 1,121,559,199 12,205,159 1,032,165,486
Letter of guarantees 1,580,960 163,308,451 - -
Irrevocable letter of credits - - 5,118,638 436,927,963
Bills for collection 14,422,755 1,489,827,345 13,693,469 1,129,567,424
Other contingent liabilities - - 176,241 -
Total 26,861,331 2,774,694,995 31,193,507 2,598,660,873
Other commitments
Swap deals with banks and customers - - - -
Spot and forward deals with banks and - - - -
customers
- - - -
Total off balance sheet items 26,861,331 2,774,694,995 31,193,507 2,598,660,873
115
2022 2021
Particulars Note
USD Taka USD Taka
Interest income 10 21,862,980 2,087,787,637 10,637,272 905,068,309

Interest paid on deposits and borrowing etc. 11 15,802,206 1,514,202,169 6,883,601 576,258,553
Net interest income 6,060,774 573,585,468 3,753,671 328,809,756
Investment income - - - -
Commission, exchange and brokerage 12 602,932 55,988,752 508,614 43,131,460
Other operating income 13 391,005 36,401,181 529,967 45,018,624
Total operating income 7,054,711 665,975,401 4,792,252 416,959,840
Salaries and allowances 1,088,154 102,230,848 830,182 70,720,500

Rent, taxes, insurance, electricity etc. 14 89,169 8,355,139 78,498 13,874,663
Legal expenses 52 4,996 - -
Postage, stamps, telecommunication etc. 15 4,932 459,035 4,024 342,605
Stationery, printing, advertisement etc. 16 9,218 871,479 4,466 381,255
Depreciation and repairs to bank's assets 119,857 11,275,665 103,166 8,785,868
Other expenses 677,532 63,737,066 202,099 17,215,042
Total operating expenses 1,988,914 186,934,228 1,222,435 111,319,933
Profit before provisions 5,065,797 479,041,173 3,569,817 305,639,907
Provision for:
Loans and advances 17 4,787,320 406,665,510 10,976,329 938,079,064
Off balance sheet items - - - -
Others - - - -
Total provision 4,787,320 406,665,510 10,976,329 938,079,064
Profit/(loss) before taxes 278,477 72,375,663 (7,406,512) (632,439,157)
Provision for tax:
Current tax expense - - - -
Deferred tax expense/ (income) - - - -
Total provision for tax 18 - - - -
Total profit/(loss) after taxes 278,477.00 72,375,663 (7,406,512) (632,439,157)
116
Cash Flow Statement
2022 2021
Particulars
USD Taka USD Taka
Interest receipts in cash 15,581,532 1,394,352,068 9,543,342 809,552,379
Interest payment (12,722,680) (1,171,094,674) (6,790,073) (566,899,959)
Fees and commissions receipts 602,932 55,988,753 508,613 43,131,459
Cash payments to employees (1,088,154) (102,230,848) (830,183) (70,720,500)
Cash payments to suppliers (14,150) (1,330,513) (8,489) (723,860)
Receipts from other operating activities 391,005 36,401,181 530,005 45,021,853
Payment for other operating activities : (418,015) (43,711,111) (346,800) (36,747,012)
Operating cash flow before changes in operating
2,332,470 168,374,856 2,606,415 222,614,360
assets and liabilities (i)
Increase/decrease in operating assets and
liabilities
Loans and advances to customers (75,672,323) (14,860,893,539) (157,942,112) (13,795,814,994)
Other assets (6,933,789) 483,784,961 67,943 (577,465)
Deposits from other banks/borrowings 24,949,943 9,967,616,012 154,703,199 13,540,915,651
Deposits from customers 11,934,195 1,402,767,792 146,412 22,121,222
Other liabilities (3,184,278) (796,591,722) 2,730,913 201,113,661
Cash utilised in operating assets and liabilities (ii) (48,906,252) (3,803,316,496) (293,645) (32,241,925)
Net cash (used)/flows from operating activities
(46,573,782) (3,634,941,640) 2,312,770 190,372,435
(i+ii)
Investment in commercial paper - - - -
Net cash used in investing activities - - - -
C. Cash flows from financing activities - - - -
D. Net increase/(decrease) in cash (A+B+C) (46,573,782) (3,634,941,640) 2,312,770 190,372,435
E. Cash and cash equivalents at beginning of year 69,634,716 5,974,658,656 67,321,946 5,708,975,151
Exchange difference - 42,408,344 - 75,311,070
Cash and cash equivalents at the end of year (D+E) 23,060,934 2,382,125,360 69,634,716 5,974,658,656

Cash in hand (including foreign currency) - - - -
Balance with Bangladesh Bank and its agents
- - - -
bank(s) (including foreign currency)
Balance with other banks and financial institutions 23,060,934 2,382,125,360 69,634,716 5,974,658,656
23,060,934 2,382,125,360 69,634,716 5,974,658,656
117
Off-Shore Banking Units
1 Status of the units

Off-shore Banking Units of BRAC Bank Limited, governed under the rules and guidelines of Bangladesh Bank. The bank commenced the
operation of its Off-shore banking Unit from 2010 after obtaining necessary approval from Bangladesh Bank.
1.1 Principal Activities

The principal activities of the units are to provide all kinds of commercial banking services to its customers through its off-shore Banking
units in Bangladesh.
2 Summary of significant accounting policies and basis of preparation

2.1 A summary of the principle accounting policies which have been applied consistently (unless otherwise stated), are set out below:
a) Basis of accounting
The off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank Companies
Act 1991, International Financial Reporting Standards and other applicable directives issued by Bangladesh Bank.
b) Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses, actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
c) Foreign currency transactions and translations to presentation currency

Foreign currency transactions are converted into equivalent functional currency i.e. USD using the exchange rates ruling on the dates of
respective transactions as per IAS -21" The Effects of Changes in Foreign Exchange Rates".
All revenue items have been translated to presentation currency i.e. BDT at average rate and all balance sheet items except retained
earnings were translated to presentation currency at the closing rate. Any resulting differences have been recognised as foreign currency
Commitments for outstanding forward foreign exchange contracts disclosed in the financials are translated at contracted rates. Contingent
liabilities/ commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed in Taka terms at the
rates of exchange ruling on the balance date.
2.2 Reporting period

These financial statements cover one calendar year from 1 January to 31 December 2022.
2.3 Cash and cash equivalents

For the purpose of presentation in the cash flow statements, cash and cash equivalents includes cash in hand and cash at bank, highly
liquid interest bearing investment/securities with original maturities of less than three month.
As per IAS 7 Statement of Cash Flows, cash flow statement can be prepared either in direct method or in indirect method. The presentation
is selected to present these cash flows in a manner that is most appropriate for the business or industry . The method selected is applied
consistently. As per BRPD 14 dated 25 June 2003, cash flow statement should be a mixture of direct and indirect method.
2.4 Loans and advances

a) Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.
b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not charged on bad and loss
loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.
2.5 Provision for liabilities

A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is
probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the IAS 37 " Provisions,
Contingent Liabilities and Contingent Assets".
2.6 General
a) Figures appearing in these financial statements have been rounded off to the nearest Taka and rearranged wherever necessary.
118
2022 2021
Particulars
USD Taka USD Taka
3 Balance with other banks and financial institutions

JP Morgan Chase Bank, New York 6,799,986 702,418,166 1,612,754 138,374,289
JP Morgan AG, Frankfurt, Germany 247,489 25,564,908 4,957 425,313
JP Morgan Chase, N.A., London 13,459 1,390,286 17,005 1,459,054
BBL OBU to Other Bank OBU placement 16,000,000 1,652,752,000 68,000,000 5,834,400,000
23,060,934 2,382,125,360 69,634,716 5,974,658,656
4 Loans and advances

Loans, cash credits, overdrafts etc. (note 4.1) 457,081,025 47,215,098,555 375,658,784 32,231,523,671
Small and medium enterprises 1,312,019 135,527,658 1,712,685 146,948,408
Bills purchased and discounted (note 4.2) 19,872,270 2,052,745,833 25,221,520 2,164,006,427
478,265,314 49,403,372,046 402,592,989 34,542,478,506
4.1 Overdrafts 2,259,757 233,426,083 5,150,889 441,946,251

Demand loans 409,950,673 42,346,674,651 326,653,467 28,026,867,478
Term loans 44,870,595 4,634,997,821 43,854,428 3,762,709,942
457,081,025 47,215,098,555 375,658,784 32,231,523,671
2022 2021
Particulars
USD Taka USD Taka
4.2 Bills purchased and discounted 19,872,270 2,052,745,833 25,221,520 2,164,006,427

Bills purchased and discounted SME - - - -
19,872,270 2,052,745,833 25,221,520 2,164,006,427
5 Other assets
Interest receivables 9,207,982 944,365,760 2,926,535 250,930,191
Deferred revenue expenditure 587,710 60,708,662 200,313 17,186,834
Receivables against collateral margin-swap - - - 180,000
Receivable settlement account-OBU/DBU - - 6,145,767 527,306,788
9,795,692 1,005,074,422 9,272,615 795,603,813
Borrowings from other banks, financial

6
institutions and agents
Inside Bangladesh:
Woori Bank, Dhaka - - 5,000,000 429,000,000
On Shore to BBL Off Shore 72,822,436 7,522,339,223 141,090,169 12,105,536,457
72,822,436 7,522,339,223 146,090,169 12,534,536,457
Outside Bangladesh:
State Bank of India, Hong Kong 24,000,000 2,479,128,000 - -
Nabil Bank Limited, Nepal 6,186,300 639,026,231 3,500,000 300,300,000
HDFC Bank Limited, India 15,000,000 1,549,455,000 10,000,000 858,000,000
Standard Chartered Bank, Singapore 5,000,000 516,485,000 27,600,000 2,368,080,000
DBS Bank Singapore - - 28,000,000 2,402,400,000
Asian Development Bank 30,000,000 3,098,910,000 30,000,000 2,574,000,000
Axis Bank Limited - - 20,000,000 1,716,000,000
Caixabank S.A. 67,000,000 6,920,899,000 30,000,000 2,574,000,000
Siddhartha Bank Limited, Kathmandu - - 10,000,000 858,000,000
The National Bank of Ras Al-Khaimah, UAE 50,000,000 5,164,850,000 17,148,000 1,471,298,400
Abu Dhabi Commercial Bank, UAE 15,000,000 1,549,455,000 55,000,000 4,719,000,000
First Abu Dhabi Bank PJSC, UAE - - 10,000,000 858,000,000
CDC Group Plc, United Kingdom 8,580,000 886,288,260 6,540,625 561,185,625
119
International Finance Corporation (IFC), USA 30,000,000 3,098,910,000 15,000,000 1,287,000,000
JP Morgan Chase Bank N.A. Singapore 49,000,000 5,061,553,000 3,500,000 300,300,000
Bank Muscat Saog 17,000,000 1,756,049,000 10,000,000 858,000,000
Cargill Financial Services International 30,000,000 3,098,910,000
Commercial Bank Of Qatar 10,000,000 1,032,970,000
Mizuho Bank Ltd, Singapore 10,000,000 1,032,970,000 - -
Yes Bank, India 7,740,000 799,518,780 - -
374,506,300 38,685,377,271 276,288,625 23,705,564,025
447,328,736 46,207,716,494 422,378,794 36,240,100,482
7 Deposit and other accounts

Local currency:
Current and other accounts - - - -
Saving deposits - - - -
Fixed deposits - - - -
Other deposits - - - -
- - - -
Foreign currency:
Current and other accounts 626,567 64,722,483 809,354 69,442,595
Saving deposits - - - -
Fixed deposits 20,300,041 2,096,933,295 8,633,540 740,757,724
Other deposits 723,611 74,746,794 273,129 23,434,461
21,650,219 2,236,402,572 9,716,023 833,634,780
Total Deposit and other accounts 21,650,219 2,236,402,572 9,716,023 833,634,780
8 Other liabilities
Provisions for loans and advances 16,631,233 1,717,956,454 24,297,996 1,958,679,094
Special provision COVID-19 361,561 37,348,170 435,293 37,348,170
Provision on interest receivable 91,394 9,440,739 21,488 1,843,706
Interest suspense 1,028,776 106,269,450 1,918,811 164,633,977
Provision for taxation net off AIT 654,488 67,606,624 787,956 67,606,624
Interest payable on borrowings 4,068,022 420,214,461 1,275,007 109,395,602
Accrued expenses 419,620 35,607,707 (48,975) (4,054,049)
Suppliers payable (680) (70,212) (231,137) (19,901,732)
Payable to on-shore 23,280,472 1,709,927,600 27,431,048 2,105,368,327
Payable against SWIFT charge 9,048 934,644
Others payable 1,468,988 109,442,404 (1,526,202) 76,007,624
48,012,922 4,214,678,041 54,361,285 4,496,927,343
2022 2021
Particulars
USD Taka USD Taka
9 Surplus in profit and loss account/ retained earnings

Balance at the beginning of the year (4,955,782) (270,531,752) 2,450,290 235,781,082
Adjustment to retained earnings (1,192,632) - 440 126,126,323
Add: Retained surplus for the year 278,477 72,375,663 (7,406,512) (632,439,157)
(5,869,937) (198,156,089) (4,955,782) (270,531,752)
120
10 Interest income
Interest on loans and advances 21,824,509 2,084,233,475 10,634,503 904,832,171
Interest on money at call and short notice - - - -
Interest on Funding SWAP - - - -
Other interest income 38,471 3,554,162 2,769 236,138
21,862,980 2,087,787,637 10,637,272 905,068,309
11 Interest paid on deposits and borrowing etc.

Interest on deposits 490,650 46,309,807 240,178 13,228,827
Interest on borrowing from banks & FIs 15,298,529 1,466,632,860 32,869 559,529,636
Interest on funding SWAP - - 6,602,017 721,430
Interest on money at call and short notice 13,027 1,259,502 8,537 2,778,660
15,802,206 1,514,202,169 6,883,601 576,258,553
12 Commission, exchange and brokerage

Commission from letters of credit-foreign 151,603 14,154,755 140,757 11,934,049
Import and export related fees 451,439 41,845,080 367,868 31,198,363
Other fees (110) (11,083) (11) (952)
602,932 55,988,752 508,614 43,131,460
13 Other operating income
Miscellaneous income 391,005 36,401,181 529,967 45,018,624

391,005 36,401,181 529,967 45,018,624
14 Rent, taxes, insurance, electricity etc.

Rent, rates and taxes 78,667 7,369,485 68,008 5,792,896
Insurance 1,731 163,568 1,543 7,319,806
Power and electricity 8,002 749,423 8,029 683,964
WASA and sewerage 769 72,663 918 77,997
89,169 8,355,139 78,498 13,874,663
15 Postage, stamp, telecommunication etc.

Postage and courier 977 88,099 661 56,171
Court fees & stamps 789 74,829 255 21,737
Telephone- Office 3,166 296,107 3,108 264,697
4,932 459,035 4,024 342,605
16 Stationery, printing, advertisement etc.

Stationery and printing 3,368 318,286 1,473 125,394
Security stationery 2,383 221,764 1,309 111,589
Advertisement 3,467 331,429 1,684 144,272
9,218 871,479 4,466 381,255
17 Provisions for loans and advances

For classified loans and advances 1,830,399 178,850,259 9,487,900 810,646,253
For unclassified loans and advances 2,883,633 220,308,571 1,488,429 127,432,811
Provision for interest receivable 73,288 7,506,680 - -
4,787,320 406,665,510 10,976,329 938,079,064
18 Provision for tax

Offshore Banking Unit (OBU) is an integral business unit of the Bank. The income from OBU is included in the separate financial statement
of the Bank and tax has been provided on total income of the Bank including income from OBU. Hence provision for tax has not been
calculated for OBU portion separately.
121
To whom it may concern
This is to certify that as detailed in the Annexure-I, BRAC Bank Limited made the custodian transactions on
account of custodian services provided during the year ended 31 December 2022, which have been verified with
the books of account, invoices and other related documents as produced to us for our verification.
We also certify that management of the Bank prepared and fairly presented of the income and expenses in
accordance with the requirement of the Securities and Exchange Commission (Securities Custodian Service)
Rules 2003, and made necessary disclosures in the Bank’s audited financial statements for the year ended 31
December 2022.
________________________
Sabbir Ahmed FCA, Partner
Enrolment No: 770
Dhaka, 11 April 2023 Chartered Accountants
Annexure - I
BRAC Bank Limited
Custodian Service
2022 2021
Particulars
Taka Taka
Operating income
Commission, exchange and brokerage 21,789,916 20,405,215

Total operating income 21,789,916 20,405,215
Operating expenses
Salaries and allowances 2,780,388 2,805,181
Rent, taxes, insurance, electricity etc. 960,135 963,510
Postage, stamps, telecommunication etc. 149,391 121,790
Stationery, printing, advertisement etc. 924 909,363
Depreciation on and repairs to bank's assets 258,547 1,220,677
Other expenses 148,164 9,800,386
Total operating expenses 4,297,549 15,820,907
Operating profit 17,492,367 4,584,308
123
Annexure - J
BRAC Bank Limited
Details of transactions with related parties
Amount in Taka
Additions for deposit
Deductions for deposit
SL Opening balance on made/loan Closing balance on
Name of the related parties (Companies) Relationship with BBL Balance type withdrawn/ loan
No. 01 January 2022 disbursed/interest or 31 December 2022
recovered
fees charged
1 BRAC and Its associated organization Parent Company Deposits 14,622,760,969 267,474,069,607 267,159,314,152 14,937,516,424
2 bKash Limited Subsidiary Deposits 8,539,255,713 502,155,899,099 505,488,223,013 5,206,931,799
3 BRAC EPL Investments Limited Subsidiary Deposits 15,685,315 17,348,369,036 17,253,111,165 110,943,186
4 BRAC EPL Stock Brokerage Limited Subsidiary Deposits 242,464,433 7,014,725,820 6,679,549,425 577,640,828
5 BRAC IT Services Limited (biTS) Associates Deposits 111,170,288 493,299,919 548,651,894 55,818,313
6 BRAC SAAJAN Exchange Limited Subsidiary Deposits 60,647,285 41,598,001 98,224,767 4,020,519
7 Edotco Bangladesh Co. Limited Common Board member Deposits 120,116,043 836,366,282 955,782,510 699,815
8 Policy Research Institute of Bangladesh (PRI) Common Board member Deposits 849,010 875,660 812,710 911,960
9 RSA Advisory Ltd. Common Board member Deposits 15,515 99,340,601 95,458,288 3,897,828
10 Blue-Wealth Assets Limited Common Board member Deposits 4,425 48,168 690 51,903
11 Walton Hi-Tech Industries Limited Common Board member Deposits 55,108,388 4,938,786,419 4,991,914,807 1,980,000
12 Water Garden Resort and Spa Common Board member Deposits 343,359 12,361,366 12,581,115 123,610
13 Affordable Health Care Common Board member Deposits 71,814,240 - 71,740,690 73,550
14 BRAC EPL Investments Limited Subsidiary Continuous loan 590,713,888 1,045,238,154 1,371,158,390 916,634,124
15 BRAC Saajan Exchange Limited Subsidiary Continuous loan 266,256,133 223,156,832 29,162,423 72,261,724
17 IPDC Finance Limited Common Board member Term placement 3,000,000,000 N/A 3,000,000,000
19 BRAC IT Services Limited (biTS) Associates Receivables 187,859,621 N/A 154,857,249
20 Key Management Personnel (Note - 8.6) Senior Management Loans and Advances 106,920,329 N/A 113,952,814
BRAC Bank Employees' Gratuity Fund (Post
21 Details of transactions with BRAC Bank Employees' Gratuity Fund can be found at note no 10.5
employment benefit plan)
SL Opening balance on Closing balance on 31

Name of the related parties (Directors) Relationship with BBL Balance type Credit Card Limit Lien Amount
No. 01 January 2022 December 2022
1 Asif Saleh Director Credit card 106,081 58,602 500,000 500,000
2 Selim Reza Farhad Hussain Director Credit card 64,568 509,113 1,000,000 1,000,000
3 Fahima Choudhury Director Credit card 15,176 63,702 500,000 500,000
4 Shameran Bahar Abed Director Credit card 1,340 346,672 500,000 500,000
Note: In addition, BRAC Bank has credit exposure on NGOs where its Directors are involved in the capacity of executive committee members. As on 31 December 2022, the Bank has credit exposures
amounting BDT 845,333,012. However, as per Bangladesh Bank letter ref: BRPD (R-2)651/9(25)ka/2016-6852; such exposure shall not come under the purview of related party exposures as given to non-
profit organisations.
124

BRAC Bank Audited Financial Statements 2022

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BRAC Bank Limited

Independent Auditor's Report and Consolidated

Net asset value (NAV) per share 49 40.86 38.21

As per our report of same date.

Investment income 29 7,585,930,404 7,142,434,925

Salaries and allowances 12,044,197,172 9,889,092,833

Share of profit of associates 41 4,860,182 3,742,052

Provision for loans/investments:

Provision for taxation:

Retained earnings brought forward from previous year 26,402,962,532 16,368,391,545

As per our report of same date.

For the year ended 31 December 2021

Net Liquidity Gap 29,972,364,984 (8,898,617,955) 29,724,162,243 (11,114,174,732) 41,345,876,070 81,029,610,610

Balance with other banks and financial institutions 5 16,255,534,724 19,880,951,145

LIABILITIES AND CAPITAL

Other liabilities 17 34,760,769,207 32,763,271,381

Net asset value (NAV) per share 49 39.02 36.36

As per our report of same date.

Investment income 29 5,184,549,425 5,780,677,077

Salaries and allowances 8,151,587,989 6,625,995,876

Provision for loans/Investments:

Provision for taxation:

Retained earnings brought forward from previous year 16,329,861,552 13,680,255,527

As per our report of same date.

For the year ended 31 December 2021

1 THE BANK AND ITS ACTIVITIES

Name of Face No. of ordinary shares held by BBL's percentage of

1.6.1 BRAC EPL Investments Limited (subsidiary)

2.2 Statement of compliance with applicable laws, regulations and standards

i) The Bank Company Act, 1991, and amendment thereon;

ii) Subsequent measurement of Government securities

v) Financial instruments – presentation and disclosure

vii) Financial guarantees

xii) Presentation of intangible asset

xviii) Name of the financial statements

IFRS-14 Regulatory Deferral Accounts Not applicable

2.6 Functional and presentation currency

JPY 1= BDT 0.77 0.75

3.1 Assets and the basis of their valuation

Investment in mutual funds

Lower of cost or NAV of last

Consumer financing - Other than house

Recognition and measurement

The cost of the items of property, plant and equipment comprises:

BRAC Bank BRAC EPL BRAC EPL Stock BRAC Saajan

Furniture and fixture 10% 10%-20% 12.5% 10% 20%

Impairment of intangible assets

C. IFRS 16 "Leases" and its relevant assumptions and disclosures

Accounting of lease modification

D. Capital work-in-progress (CWIP)

3.1.5 Other assets and basis of their measurement

b. Reporting investment in subsidiaries and associates in separate financial statements

Gross fair value

BRAC EPL Investment Ltd. 2,891,704,014 1,302,350,935 1,301,639,222 (1,590,064,792) (1,351,555,073)

c. Reporting investment in subsidiaries and associates in consolidated financial statements

3.2.2 Deposits and other accounts

3.2.3 Other liabilities

a. Provision for loans and advances

b. Provision for other assets

e. Provisions for nostro accounts