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IDLC Finance reported a 34.78 per cent year-on-year rise in profit to Tk 0.68 billion for the third quarter ending in September this year, driven by higher investment income.
The company is among the few non-bank financial institutions (NBFIs) that have managed to contain non-performing loans. However, during the quarter to September, it experienced sluggishness in its core business, as net interest income declined compared to the same period last year.
According to a stock exchange filing on Thursday, investment income offset the fall in interest income and helped boost profit.
In the nine months through September, IDLC Finance's profit surged 40.77 per cent year-on-year to Tk 1.76 billion.
The disclosure said the profit growth was mainly supported by robust investment earnings. Investment income rose by Tk 1.82 billion year-on-year to Tk 2.6 billion during the nine-month period.
In contrast, net interest income fell by Tk 865 million in the quarter compared to the same period last year, while operating expenses increased by Tk 209 million year-on-year.
The company's cash flow also improved as it received a large amount of deposits during the period. Cash flow per share rose to Tk 31.59 for January-September this year, from Tk 8.07 in the same period of the previous year.
Following the latest earnings disclosure, IDLC Finance's share price climbed 4.7 per cent to Tk 37.9 on Thursday on the Dhaka Stock Exchange (DSE).
Annual performance
IDLC Finance's annual profit jumped 32 per cent year-on-year to Tk 2 billion in 2024. The company paid a 15 per cent cash dividend and a 5 per cent stock dividend to shareholders for the year.
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