IDLC Finance's net profit soars 67pc

IDLC Finance's net profit soared 67 percent year-on-year to Tk 60.1 crore in January-March, mainly driven by earnings from the capital market, including brokerage commission and investment income.

In the first quarter this year, IDLC's income from investment through its capital market subsidiaries shot up 266 percent to Tk 33.3 crore, while earnings from brokerage commission rose 45 percent to Tk 35.6 crore. SME, corporate and consumer financing, the other major business segments of the company, also saw notable growth.

“All our business verticals -- SME, consumer, corporate, deposits and capital market operations -- have delivered a very strong performance in the first quarter and combined, we have delivered a noteworthy three months' profit in 2017,” said Arif Khan, chief executive officer and managing director of IDLC Finance.

The focus remains firmly on continuing the good performance for the rest of the year, he said.

“In the first quarter, our NPL or non-performing loan ratio fell to 2.79 percent compared to 2.98 percent at the end of December 2016 and 3.06 percent at the end of the first quarter of 2016,” he said while disclosing the earnings at a function in Dhaka yesterday. “NPL management will remain a priority for us in the coming days as well,” he said.

The company's operating income rose 30 percent year-on-year to Tk 165.9 crore at the end of March. The earnings per share reached Tk 1.8, up from Tk 1.11 a year ago.

During the January-March period, IDLC acquired 3,169 new customers, while the customer assets portfolio grew 9 percent to Tk 6,765.1 crore.

The growth in customer assets was driven primarily by SME loans, which experienced 11 percent growth during the period. He, however, said, “Since interest rate is declining and customers are negotiating for lower rates, it has become a buyer-driven market.”

Khan said IDLC will open four new branches this year -- in Rajshahi, Barisal, Chowmuhany and Dhaka.

The company is also planning to launch a Tk 50-crore open-end mutual fund styled “IDLC Balanced Fund” this year.

IDLC was listed on the stockmarket in 1992. Each IDLC share traded between Tk 71.8 and Tk 75 on the Dhaka Stock Exchange yesterday, before closing at Tk 74.

Sponsors own a 59.66 percent stake in IDLC, institutional investors 20.54 percent, foreign investors 4.04 percent and the general public 15.76 percent, according to DSE data.