IPDC Finance sees 18% rise in operating profit for Jan-Sep
The non-bank financial institution (NBFI) approved its un-audited financial statement for the first nine months at a board meeting yesterday
IPDC Finance has reported an 18% increase in operating profit for the January-September period this year, despite a significant rise in funding costs due to a policy rate increase by Bangladesh Bank.
The non-bank financial institution (NBFI) approved its un-audited financial statement for the first nine months at a board meeting yesterday.
In a statement, IPDC Finance said it recorded an operating profit of Tk102.19 crore in the first three quarters of 2024, making an 18% rise on a year-on-year basis.
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During this period, IPDC's investment portfolio expanded by 44.5%, resulting in a Tk25.49 crore rise in investment income, 170% higher than the same time last year.
Interest income rose by 15% to Tk628 crore compared to the same period last year, which the NBFI attributed to effective loan management.
However, interest expense increased significantly by 28% year-on-year to Tk468 crore during the period due to an increase in cost of deposit, policy rate hike by Bangladesh Bank, and overall changes in the macroeconomic scenario of the country, read the company's statement.
The company further stated that it successfully reduced operating expenses by Tk2.65 crore, or 7%, year-over-year prioritising efficient resource utilisation and hiring only for essential roles.
On a year-to-date basis, operating expenses dropped by Tk9.91 crore, or 8.2%, reflecting gains in operational efficiency, according to the statement.
The company also emphasised in maintaining robust coverage for impaired assets, leading to a 13.8% increase in accumulated provisions, which reached Tk349.30 crore in the January-September period.
However, due to the rise in operating income, IPDC experienced a substantial rise in current tax expenses, which grew by Tk2.17 crore, or 62%, on a quarterly basis, and by Tk7.75 crore, or 39.6%, year-to-date compared to last year.
Consequently, net profit fell to Tk15 crore by the end of September this year.
At the of the first nine months of this year, its earnings per share stood at Tk0.39.
IPDC shares closed at Tk19 yesterday, which was 3.06% lower than the previous session at the Dhaka Stock Exchange.
In 2023, the company paid a 5% cash and 5% stock dividend with a net profit of Tk34.29 crore.
