DBH Finance posts 22% profit fall in Q3 on lower treasury income

DBH Finance PLC reported a 22% year-on-year decline in net profit for the July-September quarter of 2026, as a sharp drop in investment income from government securities offset a surge in net interest income.

According to a financial disclosure filed with the Dhaka Stock Exchange (DSE) today (14 October), the specialised housing finance institution posted a net profit of Tk25 crore in the third quarter ended 30 September 2026, down from the same period a year earlier.

Consequently, its quarterly earnings per share (EPS) fell to Tk1.24 from Tk1.60 in July-September 2025.

The decline in quarterly profit came despite a 91% surge in net interest income to Tk55.60 crore. However, income from investments in government securities plunged 76% to Tk8.38 crore during the three-month period, weighing on overall profitability.

Despite the third-quarter decline, the lender's cumulative performance for January-September 2026 remained positive. Net profit for the nine-month period rose 9% year-on-year to Tk80.76 crore, lifting EPS to Tk3.98 from Tk3.67 in the same period last year.

The company attributed the growth in cumulative earnings to a recovery in the capital market in 2026, which enabled it to reverse approximately Tk5.5 crore in provisions for investment impairment. Lower provisioning requirements against loans and advances compared with the same period last year also supported profitability.

Meanwhile, net operating cash flow per share turned negative at Tk4.51 in January-September 2026, compared with a positive Tk17.36 in the corresponding period of 2025, mainly due to a contraction in the deposit portfolio.

Net asset value per share rose to Tk52.03 as of 30 September 2026 from Tk49.55 on 31 December 2025.

Following the earnings announcement, DBH Finance shares fell 0.76% to close at Tk39.10 on the DSE today.