IDLC Finance reported a profit of Tk 508.77 million for the first quarter of 2025, a year-on-year surge of more than 43.6 per cent, driven by gains from Treasury bonds and reduced provision.
The earnings per share (EPS) rose to Tk 1.22 for the first quarter of 2025 from Tk 0.85 for the same period a year ago, according to the price sensitive information published on Monday.
IDLC Finance, one of the best performing non-bank financial institutions (NBFIs) in the country, could not, however, secure a growth in its core business. Though interest rates remained high during the period, the NBFI had to compete with banks to attract depositors.
The listed NBFI earned interest amounting to Tk 3.94 billion in the first quarter through March, which is 18 per cent higher than in the same quarter of the previous year, but paid interest of Tk 2.99 billion in the same quarter to March, 45 per cent more than in the corresponding period last year.
As a result, the net interest income fell 25 per cent year-on-year to Tk 0.96 billion in January-March this year.
Despite the squeeze in the core business, operating profit jumped 11.5 per cent year-on-year to Tk 1.86 billion, as the company secured a higher return from high yielding Treasury bonds. The NBFI also showed a surge in income from mutual funds.
The investment income in Q1 this year stood at Tk 668.75 million, 508 per cent up from the corresponding period last year.
The company, however, witnessed an 8.68 per cent year-on-year increase in operating expenses to Tk 798.52 million in Q1 this year.
It kept a 31 per cent lower provision in the first quarter of this year to Tk 211 million, compared to the same quarter last year.
“The primary reason behind the growth in EPS is the increase in investment income (increased by Tk 550 million),” said the company in its earnings note, adding that provision for loans and investments decreased by Tk 95 million.
The net operating cash flow per share, a measure of the company’s ability to generate cash from its operations, went up to Tk 2.54 in the quarter to March from Tk 17.53 in the negative in the same quarter of the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 49.48 per share as of March this year, from Tk 48.26 per share last December.
Meanwhile, the stock stood at Tk 30.40 per share on Monday on the Dhaka Stock Exchange.
Currently, the company’s price-to-earnings ratio is 6.31, significantly lower that the sectoral ratio of 8.11 and the overall market’s ratio of 9.16, according to amarstock.com.
The PE ratio means a company’s current stock price relative to its latest earnings per share.
https://today.thefinancialexpress.com.bd/stock-corporate/idlc-finances-profit-up-43pc-on-gains-from-t-bonds-1747069059
