BRAC Bank PLC is increasingly relying on investment and other income to maintain profitability as earnings from its core banking operations have weakened, an analysis of the bank’s 2025 financial statements shows.

The bank’s net interest income fell to Tk 1,177.79 crore in 2025, from Tk 1,346.17 crore in 2024, marking a decline of Tk 168.38 crore, or 13 percent.

At the same time, BRAC Bank sharply increased its investments in government treasury bills, treasury bonds, prize bonds and other securities. Its total investments rose 60 percent to Tk 32,625.64 crore in 2025 from Tk 20,435.17 crore a year earlier.

As a result, investment income surged 78 percent to Tk 3,793.50 crore in 2025 from Tk 2,126.47 crore in 2024. The bank also earned Tk 795.13 crore from commissions, exchange and brokerage, along with Tk 28.18 crore from other operating activities.

These sources of income helped the bank increase its net profit by 30 percent to Tk 1,580.87 crore in 2025, compared with Tk 1,213.61 crore in 2024.

However, the figures indicate a growing gap between the bank’s core banking income and its operating expenses. In 2025, net interest income was Tk 1,177.79 crore, while staff salaries and related expenses alone amounted to Tk 1,481.36 crore. This means income from core banking operations covered only around 80 percent of staff compensation costs.

The bank’s total operating expenses, including salaries and other costs, stood at Tk 2,605.95 crore in 2025. It also incurred Tk 688.39 crore in loan-provision expenses.

The trend becomes more pronounced when compared with 2021. Four years earlier, BRAC Bank’s net interest income stood at Tk 1,399.69 crore, higher than in 2025. Investment income, however, was only Tk 578.07 crore that year, while total investments stood at Tk 5,159.08 crore.

Between 2021 and 2025, net interest income declined by 16 percent, while investment income soared by 556 percent. During the same period, the bank increased its investments by 532 percent, or Tk 27,466.56 crore.

As of December 31, 2025, BRAC Bank had paid-up capital of Tk 1,990.93 crore and net assets of Tk 9,970.16 crore.

Its outstanding loans stood at Tk 73,065.88 crore, against customer deposits of Tk 88,951.74 crore. Deposits included Tk 23,619.35 crore in current accounts, Tk 12,978.94 crore in savings accounts and Tk 51,078.45 crore in fixed deposits.

The bank also held Tk 973.13 crore in other deposits and Tk 301.86 crore in bills.

BRAC Bank’s company secretary M Mahbubur and its public relations department were contacted for comments on the issues, but no response was received.

The report is part of a two-part series examining BRAC Bank’s financial performance, with the next report focusing on what the publication describes as alleged irregularities behind the bank’s record profit.