IPDC Finance PLC Q1 profit jumps to 98.8%

IPDC Finance PLC reported a 98.8% year-on-year increase in net profit to BDT 37 million for the January–March 2025 quarter, driven primarily by strong returns from its investments in government securities.

Earnings per share rose to BDT 0.09 from BDT 0.05 in the same quarter a year earlier. At the same time, gross interest income increased 16.1% to BDT 2,288 million, despite a 22.9% rise in financing costs amid higher deposit rates and successive policy rate hikes by the Bangladesh Bank.

Total investment income surged 134.8% year-on-year to BDT 239 million, led by a 208.8% increase to BDT 125 million in revenue from government securities. Total operating income reached BDT 757 million, up 14.9%, and operating profit rose 26.6% to BDT 374 million as strategic resource optimisation, selective hiring, and enhanced operational efficiency kept operating expense growth limited to 5.3%. Net operating cash flow per share (NOCFPS) improved to BDT 4.86 from negative BDT 12.39, while Net Asset Value (NAV) increased to BDT 17.83.

IPDC's gross assets stood at BDT 79,511 million as of March 2025, reflecting stable growth, while customer deposits increased 7.8% to BDT 55,786 million, securing an approximately 11% share of the non-bank financial institution (NBFI) deposit market. Loans and advances grew 1.1%, while the investment portfolio remained strong despite a modest 3.3% decline.

"We are delighted with our first-quarter results, which demonstrate the resilience of our diversified business model," said Rizwan Dawood Shams, Managing Director of IPDC Finance PLC. "By balancing risk-adjusted investments and prudent cost management, we have delivered robust profitability even as credit demand softened. We remain committed to supporting our customers and contributing to Bangladesh's economic growth."

Amid a challenging economic backdrop of sluggish private sector credit growth and rising non-performing loans across Finance Companies, IPDC Finance's Q1 performance underscores its strategic focus on sustainable development, financial discipline, and customer-centric solutions poised to drive long-term value for stakeholders and the broader economy.