IDLC Finance's profit rises 33pc

Net profit of IDLC Finance grew 33 percent year-on-year to Tk 116 crore in the first half of 2017, according to the unaudited financial statement of the non-bank financial institution.

The company unveiled the financial results for the January-June period at a programme in Dhaka on Thursday.

Earnings per share rose 21 percent to Tk 3.28 during the period.

IDLC acquired 5,779 new customers in the six months and increased the customer assets portfolio by 13 percent or Tk 792 crore to end the first half with a loan book of Tk 7,000 crore.

The growth in the customer assets was primarily driven by SME loans, which rose 18.6 percent and currently comprise 45 percent or Tk 3,100 crore of the total loans, IDLC said in a statement. The other business segments -- corporate and consumer finance -- and the two major subsidiaries -- IDLC Investments and IDLC Securities -- also delivered strong performance.

In the reported period, IDLC's annualised return on assets and return on equity figures stood at 2.77 percent and 22.89 percent respectively, compared to 2.34 percent and 22.30 percent respectively during the same period last year.

Non-performing loans stood at 2.84 percent of the total loans on June 30, 2017 compared to 2.98 percent on December 31, 2016.

Arif Khan, chief executive officer of IDLC Finance, who made a presentation on the half yearly disclosures, expressed satisfaction with the financial results.

“While our core lending business continued its growth momentum and delivered consistent financial performance in the first half of 2017, our subsidiaries produced exceptional results to elevate the overall profitability to a new height,” he said.  The company's operating income rose 25 percent year-on-year to Tk 315 crore, riding on healthy investment income and increase in net interest and fee income.

In the period, IDLC Asset Management launched its first open-end mutual fund named IDLC Balanced Fund.

Khan said: “We are continuously investing in our technological infrastructure as well as strengthening our human resources.” The group has a customer base of more than 47,000.