IDLC Finance’s profit jumps 46% in Q2

IDLC Finance PLC reported a significant rise in profitability in the second quarter of 2025, buoyed by higher investment income and lower provisioning expenses, the leading non-bank financial institution said in its financial statements.

The listed company logged a net profit of Tk 57.89 crore in the April-June quarter, marking a 46 percent year-on-year increase.

Its consolidated earnings per share (EPS) stood at Tk 1.33 in the second quarter, up from Tk 0.91 in the same three-month period of 2024.

For the first half of 2025, consolidated EPS was Tk 2.49 against Tk 1.72 for January-June period of the previous year. 

Its net profit for January-June rose to Tk 108.8 crore, an increase of Tk 33.5 crore from the same period a year ago.

IDLC attributed the earnings surge primarily to an increase in investment income, which rose by Tk 120 crore, and a Tk 3.2 crore decline in provisions for loans and investments. 

However, the NBFI also faced headwinds as its net interest income declined by Tk 57.8 crore, commission, exchange and brokerage income by Tk 6.2 crore, and other operating income by Tk 4.8 crore.

Its operating expenses increased by Tk 8.6 crore, while tax provision was higher by Tk 13.1 crore during the period.

The company also posted strong operating cash flows as its consolidated net operating cash flow per share hit Tk 20.31 for January-June 2025, significantly higher than Tk 6.49 in the corresponding period of 2024.

The substantial jump in cash generation was driven by higher inflows from terms and other deposits, the NBFI said in the financial report. 

As of June 30 this year, sponsor-directors held 56.66 percent of the company's shares, followed by institutions 27.87 percent, the public 15.10 percent, and foreign investors 0.37 percent, according to Dhaka Stock Exchange data.