IDLC Finance's profit grows marginally
IDLC Finance's net profits grew just 1 percent to Tk 182.15 crore in the first nine months of the year thanks to interest rate volatility and bearish capital market.
“The current year was very challenging as the market performed badly,” said Arif Khan, chief executive officer and managing director of IDLC Finance, adding that liquidity crisis and interest rate volatility also hurt business.
Despite the challenges, IDLC did well in comparison to its peers, he said.
During the period, IDLC's earnings per share declined to Tk 4.83 from Tk 4.90 a year earlier, according to the quarterly statement, which was unveiled yesterday.
The other financial health indicators such as return on equity and return on assets deteriorated to 18.76 percent and 2.35 percent respectively in the nine months from 22.90 percent and 2.75 percent. Loan portfolio grew 12.72 percent to Tk 7,959 crore in the nine months thanks to corporate portfolio.
Non-performing loans dropped to 2.67 percent in September from 2.83 percent in June.
At the Dhaka Stock Exchange yesterday, each IDLC share traded at Tk 62.90.
IDLC will soon start venture financing to provide capital to young entrepreneurs, the first financial organisation to do so, according to Khan.
It already got alternative investment licence from the Bangladesh Securities and Exchange Commission, the capital market regulator.
“The expansion of business activities will improve the profit growth in the coming year,” he added.
