IDLC’s profit rises 1.4pc

IDLC Finance’s net profit after tax rose 1.42 percent year-on-year to Tk 55.8 crore in the first quarter of 2019.

Its earnings per share hit Tk 1.48, up from Tk 1.46 in the same period the previous year.

Arif Khan, CEO and managing director of IDLC Finance, shared the information at a programme in Dhaka yesterday while disclosing the company’s earnings data for the first quarter of 2019.

“While being cautious given the current liquidity and interest rate scenario, we have maintained both our loan and deposit portfolios, with a 10 percent growth in non-bank deposits,” he said.

“Overall, term deposits make up 87 percent of our funding basket.”

These have been a key factor in enabling IDLC to comfortably manage liquidity condition amid the lacklustre market situation, he added.

The company’s data shows annualised return on equity and return on assets have been 16.85 percent and 2.04 percent respectively against 17.90 percent and 2.29 percent in the equivalent prior period.

IDLC’s standalone loan book is currently composed of 42 percent SME, 34 percent consumer and 24 percent corporate portfolio. Nonperforming loan ratio stands at 2.29 percent, as compared to 2.80 percent at the end of the same period last year.

However, capital market subsidiaries of the company have reported declines in net income year-on-year, largely on the back of lower levels of investment income.

The company expects to add more to its revenue lines within the medium term through the recent attainment of alternative investments licence by IDLC Asset Management Ltd.

Khan said they have also been managing their capital market exposure prudently to maximise shareholder return.