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DBH Finance PLC's profit went down 16 per cent year-on-year to Tk 261 million in the three months through March due to lower interest income and higher interest payment on deposits.
Profit declined as net interest income dropped while interest payment and operating expenses rose, said an official of the company on condition of anonymity.
The largest and specialised housing finance institution's interest income fell 12 per cent year-on-year to Tk 451 million in the first quarter of this year.
But the company's interest payment on deposits and borrowing surged by 23 per cent year-on-year to Tk 888 million in January-March.
At the same time, operating expenses jumped 10 per cent to Tk 157 million in the quarter as salary and allowances, rent, taxes and electricity costs hiked.
However, the net operating cash flow per share returned to positive at Tk 8.09 for January-March as against Tk (11.19) in the same quarter a year ago.
The company said it had managed to raise Tk 1.11 billion new deposits in the quarter. On the other hand, deposits amounting to Tk 1.83 billion were withdrawn in the same quarter last year.
Moreover, loans paid off by customers amounted to Tk 345 million during this quarter as against a disbursement of Tk 259 million in the previous quarter.
"These are the main reasons behind the significant variation in net operating cash flow per share," said the company.
DBH Finance, formally known as Delta Brac Housing Finance Corporation, is exclusively focused on home loans since its inception in 1996.
Recently, the company received Bangladesh Bank's approval to introduce Shariah-based products and services.
The operation of the Shariah-compliant business will run simultaneously with existing operations.
DBH Finance's annual profit dropped 2 per cent year-on-year to Tk 1.02 billion in 2022. It declared 15 per cent cash and 2 per cent stock dividends for the year.