Bangladesh Finance PLC has reported a consolidated net loss after tax of Tk 793.7 crore for the financial year 2024, a significant decline from Tk 104.2 crore in 2023.

The loss primarily stems from a substantial provisioning effort, with the non-bank financial institution allocating Tk 784.6 crore and transferring Tk 123.3 crore to its interest suspense account, said a press release.

These measures, according to a press release, aim to fortify the balance sheet against future financial uncertainties.

Despite the adverse financial result, Bangladesh Finance maintained a robust provision coverage ratio of 786.93 percent, underscoring its preparedness to absorb potential economic shocks.

In response to prolonged macroeconomic challenges and lingering post-pandemic impacts on corporate clients, the institution adopted a conservative approach — provisioning fully against all risk exposures, including negative equity positions in margin loans, without seeking any regulatory leniency.

While the short-term financial repercussions are considerable, the management remains confident that this prudent and forward-looking strategy establishes a solid foundation for long-term recovery and sustainable growth.

As of December 31, 2024, the company successfully reduced its non-performing loan (NPL) ratio to 9.26 percent, down from 11.20 percent in the previous year.

The audited financial statements for the year ending December 31, 2024 were formally approved by the board of directors at its meeting held on April 17, 2025.

Looking ahead, Bangladesh Finance has articulated a strategic roadmap focused on improving asset quality, diversifying its portfolio, and strengthening collection efforts. It is expanding into SME, retail, and Shariah-compliant financing while enhancing credit risk controls and operational efficiency through technology integration.

To reinforce recovery efforts, the company is pursuing a multifaceted approach involving legal proceedings, proactive client engagement, out-of-court settlements, and collaborations with third-party collection agencies.

Although the provisioning strategy has placed temporary pressure on capital adequacy and equity, Bangladesh Finance remains committed to preserving liquidity and restoring financial strength through strategic recoveries, cost optimisation, and enhanced asset management. These efforts aim to reposition the institution as a resilient, forward-ready player in the financial sector.

By undertaking comprehensive provisioning against all classified loans, leases, and investments — without availing any regulatory forbearance — the institution has reaffirmed its commitment to financial integrity, prudent risk management, and its fiduciary responsibilities to stakeholders.