IDLC Finance PLC. surges 25.3% in Q3 profits

IDLC Finance PLC. reported a consolidated net profit after tax of Tk1,254 million for the first three quarters of 2024, reflecting significant growth of 25.30% compared to the same period last year.

Earnings per Share also saw a notable increase of 25.30%, reaching Tk3.02 for the period.

During these nine months, customer deposits grew by 2.30% compared to 2023, totaling Tk82.32 billion. The group strategically focused on optimizing portfolio quality to emphasize sustainable growth by ensuring optimal loan book size. As of the end of September, the portfolio stood at Tk111.7 billion.

Despite recent economic and political challenges, both at home and abroad, IDLC managed to maintain an annualized ROA of 1.14% and an ROE of 8.65% (compared to 0.88% and 7.29% respectively, booked for the same period last year), demonstrating improved efficiency compared to the previous year. The Non-Performing Loan (NPL) ratio, while slightly higher at 4.98%, remains well below the industry average, with a coverage ratio of 100.72%. The coverage ratio indicates the extent to which the non-performing loans are covered by provisions, reflecting the group's ability to manage potential credit losses effectively.

IDLC's subsidiaries- IDLC Securities Limited, IDLC Investments Limited, and IDLC Asset Management Limited all delivered robust performances by the end of the quarter, contributing to the group's positive results.

M Jamal Uddin, CEO and Managing Director of IDLC Finance PLC, expressed satisfaction with the financial performance: "Our nine-month financial results continue to demonstrate our ability to execute effectively, even in a challenging and volatile macroeconomic backdrop. Our agile fund management enabled us to optimize returns across our core lending and capital markets businesses. Operating income increased by 11.32% to Tk5,263 million, while operating expenses grew by only 2.18%."

He added, "We remain committed to sustaining this momentum and delivering exceptional value for our shareholders in the future."

Jamal Uddin also outlined the key strategies for continued success: "With deposit-advances margins under pressure and competition intensifying, success for financial institutions in the coming years will hinge on improving customer service, portfolio quality, and operating efficiency. At IDLC, we are continuously enhancing our initiatives to achieve these goals, setting us apart in the competitive landscape."

He expressed his gratitude to the Board of Directors for their guidance and to customers and stakeholders for their continued support."