IDLC Finance sees 45pc profit surge in Q2 on higher investment income

IDLC Finance has reported an impressive 45 per cent year-on-year growth in profit for the second quarter (April-June) of this year, driven by higher investment income.

The non-bank financial institution (NBFI) posted a profit of Tk 579 million in Q2, up from Tk 398 million in the same period last year, according to its unaudited financial statements released on Thursday.

Accordingly, its consolidated earnings per share (EPS) rose to Tk 1.33 for the quarter, compared to Tk 0.91 a year earlier.

The net interest income, the core source of income for the NBFI was not so overwhelming, but significant gain from investment in the government securities supported the lender's impressive profit growth amid inflationary pressure.

The company's interest income grew by 13 per cent to Tk 4.15 billion while interest payment to depositors soared 30 per cent to Tk 3.13 billion. As a result, net interest income dropped by 20 per cent to Tk 1.02 billion.

However, the company managed to secure higher profit, supported by higher investment income from government securities. Its income from investment soared more than five times to Tk 816 million for the April-June quarter.

Despite an adverse business climate engendered by inflationary pressure, the well-performing financial institutions managed to make profit riding on higher investment and interest income, industry insiders say.

The company's half-yearly profit also increased by 45 per cent year-on-year to Tk 1.09 billion in January-June this year as against Tk 752 million in the same period a year before due to the same reason.

The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, jumped to Tk 20.31 per share for January-June, up from Tk 6.49 in the same period last year.

The net asset value, which refers to the excess of total assets over total liabilities, increased to Tk 36.44 per share as of June this year, up from Tk 35.83 in December 2024.

Listed in 1992, the leading non-bank financial institution's stock price rose 1.68 per cent to close at Tk 42.4 on Thursday. Its stock price soared 47 per cent in the past one month.

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