DBH Finance profit dips 3% in Jul-Sep

DBH Finance PLC, a leading housing finance company, has reported a 3% year-on-year decline in profit for the July-September quarter of 2025, as higher funding costs and increased provisions weighed on its earnings.

The non-bank financial institution (NBFI) posted a net profit of Tk32.35 crore in the third quarter, down from Tk33.27 crore in the same period a year ago, according to its latest financial statement. 

During the quarter, DBH's interest income rose 9% year-on-year to Tk210.57 crore. However, the cost of funds surged 17% to Tk181.40 crore, leading to a 22% drop in net interest income to Tk29.17 crore.

The company also set aside higher provisions against loans, which increased by 146% to Tk5.93 crore during the quarter, reflecting a cautious approach to potential credit risks amid ongoing economic challenges.

For the first nine months of 2025, DBH's cumulative profit reached Tk74.38 crore, slightly higher than the previous year. Its earnings per share stood at Tk3.67 as of September, compared to Tk3.65 a year earlier. 

Following the earnings disclosure, the company's share price rose by 1.39% to close at Tk36.40 on the Dhaka Stock Exchange (DSE) yesterday.

DBH's net operating cash flow per share (NOCFPS) improved significantly to Tk17.36 in January-September 2025, up from a negative Tk7.31 in the same period of 2024, driven by strong growth in deposits, loans, and business performance. 

Its net asset value per share increased to Tk48.52 as of September, from Tk46.33 at the end of 2024.

Earlier, the company paid a 15% cash and 2% stock dividend for 2024. 

Founded 1996 and listed in 2008, DBH Finance remains one of Bangladesh's top housing finance providers. Its sponsor-directors hold 51.32% of shares, institutional investors 28.93%, foreign shareholders 3.73%, and general investors 16.02%.