2 years ago

Bangladesh Finance posts 218pc jump in net profit after tax

Published :

Updated :

In the first half (H1) of 2021, Bangladesh Finance's consolidated net profit after tax increased by 217.83 per cent year on year to Tk 235.4 million.

The company's earnings per share also increased to Tk 1.17 for H1 (January to June) as against Tk 0.44 during the same period of last year.

Its managing director and CEO Md Kyser Hamid disclosed the figures during a virtual programme on Monday, highlighting the company's financial status for H1 in 2021.

"Our cost of deposit has reduced significantly in H1 of 2021 than that in 2020, resulting in a 36.47 per cent rise in net interest revenue," he said.

"Our H1 performance was strengthened by a significant contribution from capital market investment," he added.

According to Mr Hamid, the non-banking financial institution's commission, exchange and brokerage income, on the other hand, has increased, thus having a positive influence on earnings.

"We've concentrated on customer deposits and gradually reduced our reliance on banks," he said.

"In comparison to December 2020, our client deposits have climbed to 61 per cent of the entire deposit portfolio from 57 per cent. Bank deposits, on the other hand, have been cut from 43 per cent to 39 per cent of the overall deposit portfolio."

Bangladesh Finance's standalone loan book consists of 26 per cent small and medium enterprises, 18 per cent retail and 56 per cent corporate loans.

The non-performing loan ratio is now 3.19 per cent, down from 3.22 per cent at the end of 2020.

The company's consolidated net asset value per share is Tk 17.46 as of June 2021, up from Tk 16.85 at the end of 2020.

Bangladesh Finance announced the formation of a new department, 'Structured Finance', which, they claimed, would provide a broader range of services like bond placement, bridge financing, trade financing, issue management and financial advising services.

Mr Hamid expressed the hope the new journey and transformation of Bangladesh Finance, formerly known as BD Finance, will better serve its clients in future.

"Our mnemonic "BIJOY' is built on these three pillars of trust, growth and prosperity."

"We strongly believe Bangladesh Finance will be the… most-trusted financial institution, bringing financial growth to their investments…," Mr Hamid added.

[email protected]

Share this news