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IDLC Finance, one of the leading non-bank financial institutions, has reported a 30 per cent year-on-year fall in profit in the third quarter of 2022, due to low income from investment.
The company’s consolidated profit after tax was nearly Tk 392 million for July-September 2022, down from Tk 558 million in the same quarter last year.
As a result, earnings per share dropped from Tk 1.34 to Tk 0.94, despite a 14 per cent revenue growth during the same quarter.
Listed in 1992, the stock remained stuck at the floor price since October 17 at Tk 46.50 on Sunday.
The capital market is one of the major sources of income for financial institutions, so the downward trend impacted the profit growth, said an official of the company requesting anonymity.
The company’s investment income dropped 80 per cent year-on-year to Tk 64.68 million in July-September 2022, according to its un-audited financial statements.
Income from commission, exchange and brokerage declined significantly, bringing down its total operating income to Tk 1.54 billion in July-September 2022, down from Tk 1.77 billion in the same quarter last year.
Provision for loans, advances and investments fell by Tk 280 million, and net interest income increased by Tk 448 million during the period.
Net profit fell 17.61 per cent year-on-year to Tk 1.31 billion for January-September 2022.
The consolidated net operating cash flow per share (NOCFPS) was Tk 15.77 in the negative for January-September 2022 while it was Tk 5.61 last year.
The company said that behind this variance is the increase in cash generation from terms and other deposits by Tk 9,002 million, which is offset by a decrease in cash generation from loans and advances by Tk 15,174 million and a decrease in payable from accrued expenses by Tk 1,503 million.