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Leading non-bank financial institution DBH Finance posted a 12 per cent year-on-year rise in profit to Tk 264.16 million for the second-quarter to June, driven by higher investment income.
Earnings per share rose to Tk 1.30 in April-June this year from Tk 1.16 in the same quarter last year, according to a stock exchange filing on Wednesday.
DBH Finance with Tk 7.69 billion market capitalisation is one of the few listed NBFIs that are still profitable.
However, in the second quarter, the financial institution failed to do well in its core business; the net interest margin fell by nearly 12.8 per cent year-on-year to Tk 331.10 million in Q2.
Net interest is the difference between interests earned from loans and interest paid to depositors. DBH Finance's interest income was up 11.41 per cent whereas interest payment was nearly 18 per cent higher in the quarter, compared to the same quarter of the previous year.
Investment income was good, having increased by nearly 27 per cent year-on-year to Tk 269.77 million in the quarter to June.
But total operating expenses increased by nearly 16.36 per cent year-on-year to Tk 209.23 million in the quarter, which shrank profit by 4.0 per cent year-on-year in Q2 before provision.
Since provision was negative for the second quarter, it increased net profit.
DBH Finance has a very low level of non-performing loans, according to its statement.
It said NPLs remained 1.0 per cent of the loan portfolio, one of the lowest in the industry.
In the six months to June, profit surged 2.93 per cent to Tk 420.27 million, compared to the corresponding period last year.
The company's cash position also improved in the six-month period.
Net operating cash flow was Tk. 18.08 per share for January-June 2025, which was Tk. 3.59 in the negative for January-June last year.
"During the reporting period, both deposit and loan portfolios experienced growth, resulting in a net increase in cash inflows," said the company.
"Our results reflect our operational strength and customer-first approach. In a volatile macro environment, our sustained focus on efficiency, service excellence and asset quality continue to drive DBH's success and set us apart from most of the financial institutions of the country," said Nasimul Baten, MD & CEO of DBH Finance.
Meanwhile, the share price of the company rose by 5.01 per cent on Wednesday to Tk 39.80 per share on the Dhaka Stock Exchange (DSE).
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