IDLC Finance posts 35pc growth in profits

IDLC Finance's net profit rose 35 percent year-on-year to nearly Tk 181 crore in the first nine months of 2017.

The company's earnings per share also increased 18 percent to Tk 4.90 during the period, the largest non-banking financial institution said at a press conference yesterday.

In the nine months, IDLC acquired 8,563 new customers and grew the customer assets portfolio by 13 percent or Tk 834.1 crore to end the quarter with a loan book of Tk 7,061 crore.

The growth in customer assets was driven primarily by the SME loans, which experienced a healthy 20 percent growth in the period, according to the statement.

The company's SME loans currently stand at Tk 3,131 crore, which is 46 percent of its total loan book.

Its consumer loans also grew 11 percent in the corresponding period to stand at Tk 2,380 crore, IDLC said.

The company's non-performing loan ratio stood at 2.83 percent as of September 30, 2017 compared to 2.98 percent in December 31, 2016.

The company's operating income rose by 29 percent year-on-year to Tk 486.3 crore, thanks to the healthy incomes from investments, interests and fees, IDLC said.

IDLC's three subsidiaries—IDLC Securities Ltd, IDLC Investments Ltd and IDLC Asset Management Ltd—have also delivered strong performances in 2017.

Arif Khan, CEO of IDLC Finance, expressed his satisfaction with the financial result of the company.

“Both our core lending businesses and capital market operations continued their growth momentum and delivered strong financial performance in 2017 so far,” Khan said.

“Resultantly, the group has produced exceptional financial results. We hope to continue with this momentum and deliver the best possible results to our shareholders going forward.”