Bangladesh Finance resilience in risk management, profitability restored
Bangladesh Finance PLC has reported a consolidated Earnings Per Share (EPS) of BDT 0.05 for the first quarter of 2025, signalling a return to profitability and marking the beginning of a strategic turnaround after a challenging financial year in 2024.
The Board of Directors approved the unaudited Q1 2025 financials on May 15, 2025. Recoveries from stressed loans, leases and advances and the subsequent release of excess provisions primarily drove the return to positive earnings. The impact of improved cost control measures and financial discipline is also evident in the enhanced operational efficiency, reflecting the initial outcomes of the Company's restructuring initiatives.
In response to ongoing economic headwinds and lingering post-pandemic effects on corporate clients, the Company adopted a conservative approach in 2024 by fully provisioning against all risk exposures on the balance sheet—including stressed loans, leases, listed securities, private placements, negative equity on margin loans, and fixed deposits—without seeking regulatory forbearance. While this prudent strategy affected short-term profitability, it established a solid foundation for sustainable financial growth. These proactive measures demonstrate the Company's unwavering commitment to transparency, robust governance, and long-term economic stability.
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Bangladesh Finance remains focused on strengthening its core operations through prudent liquidity management, cost optimisation, and asset quality enhancement. At the same time, the Company is diversifying its lending portfolio, focusing more on SMES, retail, and Shariah-based financing, while leveraging technology to enhance operational efficiency and credit risk management.
With a solid foundation, improving financial indicators, and a clear strategic path, Bangladesh Finance PLC is on track to restore the trust of depositors, investors, and stakeholders and reinforce its role as a resilient and trusted financial institution in Bangladesh.
