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Most NBFIs see EPS decline in H1

FE Report | Published: August 16, 2019 11:24:17 | Updated: August 19, 2019 11:31:50


Most listed non-bank financial institutions (NBFIs) have witnessed their earnings per share (EPS) decline in the January-June period of this year, compared to the same period of the previous year.

Market analysts attributed the fall in EPS to lack of new investments, increased provisioning against growing non-performing loans and losses from the capital market investments.

EPS is the portion of a company's profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company's profitability.

There are 23 NBFIs listed on the stock exchanges in the country. All but one company -- People's Leasing & Financial Services (PLFS) -- have declared their H1 earnings. The PLFS did not declare earnings as the government decided to liquidate the company going downhill over last several years.

According to unaudited financial statements, consolidated EPS of 11 companies fell (four of them saw higher losses), while 10 companies' consolidated EPS rose slightly and one company's EPS remained unchanged year on year in January-June 2019, according to the Dhaka Stock Exchange (DSE) data.

Most of the financial institutions could not borrow from the banking sector as per their demand and hence their EPS slipped, said a managing director of a leading NBFI, who declined to be named.

Keeping a big amount of provisioning against non-performing loans and losses from stock investments also ate into the profits of the NBFIs, he added.

The capital market is a major source of income for the financial institutions, but most NBFIs incurred losses from stock investments due to continuous market fall, said a leading broker.

The DSEX, the prime index of the DSE, plummeted 247 points or 4.58 per cent in the January-June period of this year.

The consolidated EPS of BIFC, Delta Brac Housing Finance, Fareast Finance, First Finance, GSP Finance, ICB, IDLC Finance, International Leasing Finance, Midas Financing, Phoenix Finance and Premier Leasing declined in January-June period of 2019, compared to the same period a year ago.

Of them, four companies -- BIFC, Fareast Finance, First Finance and Midas Financing -- posted higher losses during the period under review.

The Bangladesh Industrial Finance Company's consolidated EPS stood at negative Tk 3.78 for January-June of 2019 as against negative Tk 3.57 for the same period a year ago.

The consolidated EPS of Delta Brac Housing Finance was Tk 4.36 for January-June of 2019 as against Tk 4.39 for the same period of the previous year.

The Fareast Finance's consolidated EPS stood at negative Tk 3.45 for January-June of 2019 as against negative Tk 1.43 for the same period a year ago.

The consolidated EPS of First Finance was negative Tk 2.16 for January-June of 2019 as against Tk 1.98 for the same period a year ago.

The GSP Finance's consolidated EPS stood at Tk 0.83 for January-June of 2019 as against negative Tk 0.89 for the same period a year ago.

The consolidated EPS of ICB was Tk 0.99 in nine months for July 2018-March 2019 as against Tk 4.67 for July 2017-March 2018.

The state-run ICB has informed that due to a decline in capital gain, the EPS of the stated period fell, compared to the previous period.

The consolidated EPS of IDLC Finance was Tk 2.79 for January-June of 2019 as against Tk 2.95 for the same period of the previous year.

The consolidated EPS of International Leasing Finance stood at Tk 0.10 as against Tk 0.52 for the same period a year ago.

The Midas Financing's consolidated EPS was negative Tk 0.85 for January-June of 2019 as against Tk 0.14 for the same period a year ago.

The consolidated EPS of Phoenix Finance fell to Tk 0.63 for January-June of 2019 from Tk 0.76 in the same period of the previous year.

The Premier Leas-ing consolidated EPS stood at Tk 0.07 for January-June of 2019 as against Tk 0.08 for the same period a year ago.

The Bangladesh Finance's consolidated EPS saw the highest increase of 1050 per cent to Tk 0.23 in January-June of 2019 from Tk 0.02 in the January-June of 2018.

The EPS of FAS Finance, IPDC Finance, Islamic Finance, LankaBangla Finance, National Housing Finance, Prime Finance, Union Capital, United Finance and Uttara Finance also increased in January-June 2019 period.

The EPS of Bay Leasing stood at Tk 0.24 for January-June of 2019, remaining unchanged from the same period a year ago.

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