Written by The Banking Post
BRAC Bank has retained its B+/B rating as global rating agency S&P Global Ratings reaffirmed the lender’s stability despite Bangladesh’s challenging economic backdrop.
The agency said the bank’s risk-adjusted capital (RAC) ratio is expected to remain between 4% and 5% over the next two years. The ratio stood at 3.3% at the end of December 2024, down from 3.7% a year earlier.
According to the assessment, Bangladesh is currently navigating heightened economic and political volatility, putting pressure on overall credit conditions. Even so, the bank’s improving profitability, high earnings retention, and controlled loan growth are expected to support its capital position.
“The bank’s financial profile should be stable, in our view,” the agency noted, adding that the institution’s long-standing record of prudent management will help it steer through the turbulence.
S&P also expects the bank’s nonperforming loan ratio to stay in the 3.1%–3.5% range over the next 12–18 months — well below the sector average — supported by a balanced loan portfolio and proactive risk practices.
