BD Finance’s net profit jumps by 629%

Non-banking financial institution Bangladesh Finance and Investment Company Limited's (BD Finance) net profit increased by 629% in the first three quarters of this year.

However, its share price fell by 9.44% at the Dhaka Stock Exchange (DSE) on Sunday. The closing price of each share was Tk25.90.

A company official said it achieved this growth in profit riding on a vibrant capital market.

The company did not have to take provisions on unclassified investments as per the central bank's direction and that also contributed to high growth in profit, he added.

In the May-September period, DSEX, the prime index of the Dhaka Stock Exchange, leaped by 24% to 4,963 points.

Following this growth, the company earned Tk5.96 crore from the capital market. In the same period during the previous year, the company lost Tk19.90 crore.

The company posted a consolidated net profit of Tk17.26 crore and a consolidated earnings per share of Tk1.02 in the January-June period of this year – which was Tk1.43 crore and Tk0.14, respectively, in the same period during the previous year.

However, interest income of the company fell by 11% to Tk126.54 crore in the first three quarters.

Meanwhile, it paid 12% cash dividends to its shareholders for the 2019 financial year.

According to the DSE, the company reported a consolidated earnings per share of Tk1.12 in the 2019 financial year – which was 33% less in the previous year.

In the 2018 financial year, the non-banking financial institution paid 10% stock dividends to its shareholders.

The company listed on the DSE in 2007 and its current paid-up capital is Tk1,167.53 crore.

At the end of September this year, sponsors and directors jointly held 30.32% of shares of the company, while institutional investors and general investors owned 13.32% and 54.36%, respectively.