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Dhaka, July 21, 2025 — Bangladesh Finance Ltd has reported a sharp decline in profitability for the second quarter of 2025, as reduced interest earnings and lower investment income continue to hamper performance.

The non-bank financial institution (NBFI) posted a 46 per cent year-on-year drop in consolidated net profit, totaling Tk 13.18 million for the April–June quarter, down from Tk 24.34 million in the same period last year. Earnings per share (EPS) also fell to Tk 0.07, compared to Tk 0.13 in Q2 of 2024, according to the company’s stock exchange disclosure on Sunday.

For the January–June 2025 period, BD Finance recorded a 63 per cent decline in half-yearly profit, with net earnings of Tk 22.60 million, mainly due to a continued reduction in core income streams.

Despite the earnings decline, the company’s share price rose 1.87 per cent to Tk 10.90 on the Dhaka Stock Exchange (DSE), buoyed by investor optimism over the company’s return to positive earnings after consecutive years of losses.

Signs of Recovery After Record Loss

Market analysts view the modest profit as a turnaround from the NBFI’s recent financial distress. Bangladesh Finance had reported a record net loss of Tk 7.83 billion in 2024, driven by heightened provisioning and interest suspense accounting, in line with Bangladesh Bank’s regulatory requirements. It also posted a loss of Tk 1.05 billion in 2023.

According to the company’s earnings statement, the positive result in the first half of 2025 was supported by recoveries from non-performing loans, leases, and advances, alongside improved cost controls and financial discipline. The restructuring efforts are beginning to reflect in operational efficiency, the company noted.

Liquidity Challenges Persist

While returning to profitability marks a positive shift, liquidity constraints remain a challenge. Net operating cash flow per share (NOCFPS) for the first half turned negative at Tk -0.16, compared to Tk 0.54 in the same period last year.

“The decline in operating cash flow is primarily due to lower net interest receipts, reduced income from investments, and net repayments of borrowings,” the company said in its disclosure.

Furthermore, BD Finance continues to carry a negative net asset value (NAV) per share of Tk -29.92 as of June 2025, marginally lower than Tk -30.05 in December 2024. The continued negative NAV reflects accumulated retained losses that have significantly eroded the institution’s capital base.

Dividend and Classification Status

Due to heavy losses over the past two years, the board of directors recommended no dividend for 2023 and 2024. As a result, Bangladesh Finance was downgraded to the ‘Z’ category on the Dhaka Stock Exchange in April 2025.

Outlook

The return to profitability, albeit modest, has sparked cautious optimism among investors. However, sustained improvement in interest income, liquidity management, and capital position will be critical for long-term recovery and reclassification from the ‘Z’ category.