Written by The Banking Post
Bangladesh Finance posted a 120 per cent year-on-year rise in first-quarter profit, extending its recovery momentum after returning to profitability earlier this year.
The non-bank financial institution reported a profit of Tk 20.71 million for the January-March quarter, compared with Tk 9.42 million in the same period last year. Earnings per share rose to Tk 0.11 from Tk 0.05.
The company said the improved performance was mainly driven by realised capital gains from investments in securities and the reversal of provisions maintained against loans, leases and investments.
Bangladesh Finance, formerly known as BD Finance, has been operating for more than 25 years, serving SME, retail and corporate clients.
The institution, once considered one of the stronger players in the sector, fell into heavy losses in recent years as non-performing loans surged. It reported a loss of around Tk 1 billion in 2023, which widened sharply to Tk 7.83 billion in 2024.
The deterioration stemmed largely from higher provisioning requirements against classified loans, leases and capital market exposure, alongside rising funding costs and weak investment activity amid broader economic challenges.
Despite the rebound in profitability, some financial indicators remained under pressure.
Net operating cash flow per share declined slightly to Tk 0.04 during the quarter from Tk 0.05 a year earlier, mainly due to lower net interest income.
Meanwhile, net asset value per share remained negative, although it improved marginally to negative Tk 28.96 in March this year from negative Tk 29.07 at the end of December.
Following the earnings disclosure, the company’s share price rose 3.64 per cent to Tk 11.40 on the Dhaka Stock Exchange on Sunday.
