IDLC net profit sees 1.0pc growth in third quarter

IDLC Finance Limited, reported net profit after tax of BDT 1,821.51 million in the first 9 months of 2018, posting a 1.0 per cent growth from the same period last year.

Earnings per share (EPS) of the company stands at BDT 4.83 as against BDT 4.90 in the nine months ending September 2017, said a statement.

Annualized ROE and ROA have been 18.76 per cent and 2.35 per cent against 22.90 per cent and 2.75 per cent respectively in the equivalent prior period.

Book value per share advanced to BDT 35.24, from BDT 32.17at the Q3 2017.

Since September, 2017, loan assets grew by 12.72 per cent to BDT 79.59 billion. The loan book growth was primarily driven by corporate portfolio, which grew by above 35 per cent over the last twelve months and now accounts for 22.66 per cent of the company's total portfolio.

SME loans still hold the lion's share of the portfolio, at 41.83 per cent, followed by consumer, which makes up 33.51 per cent of the company's portfolio.

The remaining 2.0 per cent reflects margin loans, which contributed 3.0 per cent at the end of September, 2017.

NPL rates have dropped by 16 basis points from almost 2.83 per cent in Q3 2017 down to 2.67 per cent at the end of the quarter in review.

Capital market subsidiaries of the company also reported Y-o-Y growth in Net Income, largely on the back of increased investment income.

The company expects to add more to its revenue lines within the medium term through the recent attainment of Alternative Investments license by IDLC Asset Management Limited.

Arif Khan, CEO & Managing Director of IDLC Finance Limited, pointed out the company's success factors while addressing investor concerns, mentioning,

"Throughout 2018, we have been one of the few financial institutions in the country to have continued our lending operations unabated, while there was some slowdown in the market. And we have been able to achieve this through our conscious proactive measures to expand our term deposit portfolio. On a YoY basis, it has risen by 18 per cent, and now makes 83 per cent of our overall funding basket.

In fact, advance preparation from 2017 has been a key factor in enabling us to comfortably manage our liquidity condition throughout 2018."

Mr. Khan further added, "The liquidity scenario has improved significantly after the issues that had emerged in the beginning of the year, and we appreciate our regulators' decisions and efforts towards ensuring market stability and investor confidence. On our part, the focus remains on growing both our loans and deposits in a sustainable manner in the upcoming period while keeping the bad loans as limited as possible. On the other hand, we have had great success in optimizing Operating Expenses, mainly as a result of process improvement initiatives that have been particularly bearing fruits in terms of increasing efficiency. Financials aside, we continue strong in our commitment towards contributing to the greater good of the society through our social engagement efforts."