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IDLC Finance posted more than 21 per cent year-on-year growth in profit in 2025, largely driven by strong returns from investments in government securities, marking the company's highest profit in four years.
The non-bank financial institution reported a consolidated profit of Tk 2.43 billion for 2025. Its earnings per share (EPS) increased to Tk 5.58 last year from Tk 4.59 a year earlier.
Although the profit growth is remarkable, the company's net interest income declined by about 18 per cent year-on-year to Tk 3.92 billion in 2025.
Interest income was likely to go up following the introduction of market-based lending rates but the cost of funds also surged due to increased payments to depositors and lenders on the back of a rise in deposit rates.
The company's interest payment jumped to Tk 12.63 billion in 2025 from Tk 9.97 billion in the higher interest rate regime.
The lender, however, offset the pressure on core lending income with strong gains from investments. Its investment income soared 147 per cent year-on-year to Tk 3.54 billion in 2025.
"We performed very well in Treasury management this year. Treasury bills generated significant returns, and we also achieved handsome gains from capital market investments and operations in 2025," said Masud Karim Majumder, chief financial officer of IDLC Finance.
Effective fund management amid interest-rate volatility and risk-based pricing of the lending portfolio also helped improve financial performance, he added.
Based on the profit growth, the company declared a 15 per cent cash dividend and a 5 per cent stock dividend for 2025, as much as paid for 2024.
Stock dividend has been recommended to strengthen the capital base of the company for supporting future business growth and to improve certain regulatory ratios, the company said.
The number of outstanding shares of the institution is nearly 36.01 million. So, the company will pay Tk 54 million in cash dividends against profits of Tk 2.43 billion, meaning the company will retain most of the earnings.
2025 marks the second consecutive year of profit growth for the financial institution after a period of declining earnings between 2020 and 2023.
The company also reported a significant improvement in operational cash flow. Net operating cash flow per share rose more than six-fold to Tk 53.38 in 2025, compared to the previous year.
Meanwhile, its net asset value (NAV) per share increased to Tk 49.96 in 2025 from Tk 45.96 in the previous year.
On the stock market, the company's share price slipped slightly by 0.48 per cent to close at Tk 40.70 on Monday on the Dhaka Stock Exchange.
Founded in 1985, IDLC Finance is one of the country's largest multi-product non-bank financial institutions, offering services such as SME loans, corporate finance, housing finance, brokerage, and asset management.
The company also launched a Shariah-based financing window in 2024 alongside existing operations.
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