Bangladesh Finance Limited, a concern of Anwar Group, reported a loss of Tk780 crore in 2024 — the highest in its history — primarily due to high provision requirements against mounting classified loans.
Due to the staggering losses, the board of the non-bank financial institution (NBFI) recommended withholding dividend payments to shareholders for the fiscal year during its Thursday meeting, according to company sources.
The company has not yet published its full financial results for the previous year. To approve the financial statements and dividend declaration, the NBFI will hold its annual general meeting (AGM) on 29 May, with a record date of 8 May set to determine shareholders eligible for voting rights.
According to its price-sensitive disclosure, Bangladesh Finance reported a consolidated net loss of Tk780 crore for the fiscal year — a staggering 643% increase year-on-year. The company’s loss per share ballooned to Tk41.61 in 2024 from just Tk5.60 in the previous year.
In its official statement, the company announced that the board has recommended against dividend distribution for the fiscal year, citing the net loss after tax and resulting negative equity position on a consolidated basis.
The record loss was primarily attributed to substantial provisions made against non-performing loans, leases, and advances, in compliance with Bangladesh Bank’s regulatory requirements.
Furthermore, additional provisions were allocated to cover negative equity positions in margin loans, equity investments, and private placements, demonstrating the company’s commitment to prudent risk management practices.
While these necessary provisioning measures have impacted short-term profitability, they were implemented to strengthen the company’s financial position and ensure long-term sustainability.
The board has consequently prioritised capital preservation and balance sheet resilience over immediate dividend payouts, while maintaining focus on recovery efforts and the creation of enduring shareholder value, the statement emphasised.
Meanwhile, the company reported a negative consolidated net asset value per share of Tk30.05, primarily driven by accumulated retained losses that eroded its asset base and resulted in significant net liabilities.
Additionally, Bangladesh Finance faced operational liquidity challenges, with net operating cash flow per share standing at negative Tk0.61 for the period.
Its share closed at Tk10 on Thursday at the Dhaka bourse. In the last nine days, its share price dropped around 24%.
Industry overview
According to Bangladesh Bank data, loan growth across most banks and non-bank financial institutions (NBFIs) remained subdued, with NBFI loan growth registering a modest 3.14% year-on-year. This sluggish expansion is largely attributed to the slowdown in private sector credit, which declined to 7.24% in December 2024, amid elevated interest rates and persistent inflationary pressures.
Customer confidence has also been dampened by sectoral disruptions and mismanagement, resulting in weak deposit growth among NBFIs — up only 1.12% from 2023.
Meanwhile, the classified loan ratio for both banks and NBFIs rose sharply, reflecting broader macroeconomic stress and institutional inefficiencies. As of September 2024, total classified loans in the NBFI sector climbed to Tk26,200 crore, accounting for 35.52% of total outstanding loans — up from 31.55% a year earlier.
The weighted average interest rate (WAIR) on NBFI loans rose to 12.55% in September 2024, compared to 10.37% in December 2023. Similarly, the WAIR on deposits increased to 10.57% in December 2024 from 8.53% a year earlier, resulting in a wider interest rate spread than in recent years, according to the central bank.
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