IPDC Finance posts highest profit in 5 years

IPDC Finance Limited, the country’s one of the leading non-bank financial institutions (NBFIs), posted the highest profit in 2022 over five years.

The publicly traded company last year reported Tk 90.17 crore in net profit, which however, was up only 2.3 per cent from the profit of Tk 88.1 crore in the previous year.

Meanwhile, the NBFI’s earnings per share (EPS) stood at Tk 2.43 for 2022 which was Tk 2.37 for 2021, according to a filing posted on the DSE website Tuesday.

The company’s realisation against debt was better last year which mainly contributed to enhancing its earnings, the DSE filing read.

Besides, the excess liquidity which was in hand in 2021 was disbursed last year which also helped it ensure solid earnings.

IPDC Finance Chairman Kazi Mahmood Sattar in the annual report unveiled for 2021 stated, “We aim to realise our clients’ needs of owning a decent home by providing affordable home loans and extending low-cost finance to middle and low-income families across the country”

We are also eying to create new entrepreneurs with special care for women and small and medium-sized enterprises (SMEs).

The company reported a net profit of Tk 45 crore in 2018. It had a net profit of Tk 56.24 crore in 2019, and Tk 70.55 crore in 2020.

In 2021, the NBFI’s SME and emerging corporate loans disbursal jumped by 31 per cent on a year-on-year basis, while its retail loans disbursal surged by 22 per cent.

The company is giving a special focus on these two areas considering the socioeconomic status of Bangladesh.

Although IPDC Finance published its latest financial info for the year 2022, the detailed information was yet to reveal on its website.

The company’s net asset value (NAV) per share stood at Tk 18.33 with revaluation and Tk 17.51 without revaluation for 2022, against Tk 17.12 with revaluation and Tk 16.30 without revaluation for 2021.

Its operating cash flow per share (NOCFPS) stood at negative Tk 11.26 for the year ended in December 2022, against negative Tk 6.50 for the previous year.

The reasons for the deviation in NOCFPS were higher cash outflow for loan disbursements against negative cash flow from deposits which resulted in negative cash flow from operating activities, as per the DSE filing.

The model of the company’s business is to act as an intermediary between suppliers of capital on one hand, and investors of capital on the other hand. And thus it acts as an important link between these two large groups of suppliers and end users.

The listed non-bank financial institution declared a 10 per cent cash dividend to its shareholders for 2022.

It gave a 12 per cent cash dividend for 2021.

Incorporated in 1981, the company got listed on the stock exchanges in 2006.