Bangladesh Finance profit drops 75% in Jan-Mar
The company says profit dropped due to reduced income from interest
Bangladesh Finance Limited, a non-bank financial institution, posted consolidated earnings per share (EPS) of Tk0.05 for the first quarter (January–March) of the current year 2025.
This marks a significant decline by 75% from Tk0.20 in the same period of the previous fiscal year, according to the company's financial report filed on the Dhaka Stock Exchange (DSE) today (17 May).
The company attributed the decline in profit to reduced interest and investment income compared to the same period last year in its statement.
Keep updated, follow The Business Standard's Google news channel
Despite the profit fall, its share price today jumped 6.33% to reach Tk8.40 each at the DSE.
Market insiders noted that although the company incurred a record loss last year, it rebounded in the first quarter of the current year by returning to profitability. This renewed investor confidence in the company's future prospects and contributed to a positive trend in its share price.
Bangladesh Finance said in a press release today that its return to positive earnings was largely driven by recoveries from stressed loans, leases, and advances, alongside the release of excess provisions.
Improved cost controls and financial discipline also boosted operational efficiency, reflecting early results of the company's ongoing restructuring efforts, the company said.
For the year ending 31 December 2024, the board of Bangladesh Finance did not declare any dividend. During that year, the company recorded a loss per share of Tk41.61, a sharp increase from Tk5.60 in losses per share the previous year. As of 31 December 2024, the company's net liability per share stood at Tk30.05.
Due to the no dividend decision, the DSE downgraded the company's share to the Z category, which is known as junk stocks category.
Similarly, in 2023, the board also did not recommend any dividend. In that year, the company reported a loss per share of Tk5.60, compared to an EPS of Tk1.25 in the preceding year. As of 31 December 2023, its NAV per share stood at Tk 11.53.
Despite financial challenges, Bangladesh Finance's latest surveillance rating remains strong: 'AA' (Double A) in the long term and 'ST-1' in the short term. These ratings were issued by Alpha Credit Rating Limited, based on the audited financials for FY2023 and qualitative information available up to 24 August 2024.
Listed on the stock exchange since 2007, Bangladesh Finance has an authorised capital of Tk600 crore and paid-up capital of Tk 188.23 crore.
Its reserves stand at Tk28.73 crore. The company has 188.24 million shares in total, with the ownership structure comprising 30.51% sponsor-directors, 15.34% institutional investors, and 54.15% general shareholders.
