IDLC Finance logs 26% profit growth in H1 as asset quality improves
The performance underscores the company’s resilient business model and strong asset quality.
IDLC Finance PLC, the country's leading non-bank financial institution (NBFI), reported a consolidated net profit of Tk137 crore for the first half of 2026, up 26% year-on-year, despite a challenging macroeconomic environment.
The performance underscores the company's resilient business model and strong asset quality, the company said in a press release.
According to the unaudited financial statements approved at a board meeting yesterday (28 July), consolidated earnings per share (EPS) rose to Tk2.99 for the January-June period from Tk2.37 a year earlier.
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Profitability also improved, with annualised return on equity (ROE) increasing to 12.36% and return on assets (ROA) to 1.52%, reflecting more efficient use of capital and assets.
On a standalone basis, IDLC maintained a formidable balance sheet, with customer deposits reaching Tk11,454 crore and a total loan portfolio standing at Tk11,760 crore.
A key highlight of the first-half performance was IDLC Finance's strong asset quality. Its non-performing loan (NPL) ratio improved to 4.47% from 4.58% a year earlier, remaining well below the industry average, the company said.
The company also maintained an NPL provision coverage ratio of 112%, underscoring its prudent risk management and long-term financial resilience. Its subsidiaries—IDLC Securities, IDLC Investments and IDLC Asset Management—also made positive contributions, reinforcing the strength of the group's integrated financial platform.
Managing Director and CEO M Jamal Uddin said despite the industry's high funding costs and asset quality challenges, IDLC remained focused on maintaining a healthy balance sheet and strengthening customer relationships.
Chairman Kazi Mahmood Sattar said the improved profitability and portfolio quality had positioned the company for sustainable growth in the years ahead.
Following the disclosure of its unaudited financial statements on the Dhaka bourse on Wednesday, IDLC's shares fell 2.52% to close at Tk46.50.
