IPDC Finance posts 79pc jump in Q1 profit on stronger core income

IPDC Finance PLC reported a robust 78.52 per cent year-on-year growth in net profit after tax to Tk 65 million in the January-March quarter of 2026, driven by higher net interest income, strong investment earnings and disciplined cost management.

The non-bank financial institution’s earnings per share (EPS) rose to Tk 0.16 in Q1 2026 from Tk 0.09 in the same period last year, reflecting a notable recovery in after-tax profitability despite a challenging macroeconomic environment.

“Our first quarter performance reflects the resilience of IPDC’s business fundamentals and the disciplined execution of our strategic priorities. We remain committed to maintaining sound risk management practices, and creating long-term value for all stakeholders while supporting Bangladesh’s evolving economic aspirations,” said Rizwan Dawood Shams, managing director of IPDC Finance, in a statement.

Operating income grew 24.40 per cent year-on-year to Tk 942 million during the quarter.

Gross interest income increased 6.01 per cent to Tk 2.43 billion, supported by sustained asset portfolio deployment and prudent lending activities. Meanwhile, interest expenses rose at a slower pace of 1.74 per cent to Tk 1.84 billion due to easing funding costs.

As a result, net interest income climbed 22.33 per cent year-on-year to Tk 581 million, marking a reversal of the margin pressure experienced through much of 2025.

Investment income emerged as a major growth driver, rising 32.51 per cent to Tk 317 million, backed by higher yields from government securities and expansion of the treasury portfolio.

Commission and brokerage income also posted a 13.29 per cent increase to Tk 38 million.

Operating expenses rose only 3.52 per cent year-on-year to Tk 397 million, helping profit before provision surge 45.79 per cent to Tk 545 million in Q1 2026.

On the balance sheet side, loans, advances and leases stood at Tk 73.74 billion as of March 31, 2026, slightly down by 1.18 per cent from December 2025 due to selective credit deployment amid subdued demand conditions.

Total deposits, however, grew 1.60 per cent to Tk 63.25 billion, indicating stable funding strength and depositor confidence.

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