Bangladesh Finance Limited, a prominent non-banking financial institution (NBFI), has reported a remarkable 100 per cent year-on-year (YoY) increase in its net profit for the first quarter of 2024. The financial results, disclosed on Thursday via the Dhaka Stock Exchange (DSE), highlight the company's robust performance during the January to March period of 2024.
The consolidated earnings per share (EPS) for the first quarter stood at Tk0.20, doubling the Tk0.10 recorded during the same period in the previous year.
This significant growth underscores the institution's strong financial health and effective business strategies. The NBFI noted that the earnings performance has improved due to higher capital gains and dividends received from investments in securities in contrast to the same period of the previous year.
Net Operating Cash Flow per Share (NOCFPS) stood at Tk 0.82 for the first three months of 2024 against the negative Tk 1.13 for the same period last year.
In regards to the increase in the consolidated NOCFPS, the company said that the number increased due to higher income from investments in securities and conservative disbursements of loans, leases, and advances compared to the same period last year.
The NBFI's Net Asset Value (NAV) per share stood at Tk 11.73 as of March 31 of this year. It was Tk 11.53 as of December 31, 2023.
Meanwhile, in another disclosure, the company said that the Board of Directors had recommended no dividend for the year ended on December 31, 2023, due to the allocation of additional provisions and suspense against stressed loans, leases, and advances.
'This Road to Safety strategy aims to recognise potential credit risks early, ensure adequate reserves, and safeguard the company's overall financial health,' said Bangladesh Finance.
Compared to 2022's EPS of Tk 1.25, Bangladesh Finance reported a significant drop in profitability for 2023. The company ended the year with a consolidated loss per share of Tk 5.60. This decline also follows other factors like the consolidated NAV per share of Tk 11.53 and the consolidated NOCFPS of Tk 1.35 for the year ended on December 31, 2023. However, the amounts stood at Tk 17.41 and Tk 2.24, respectively, for the previous record period.
Bangladesh Finance reported a significant drop in profits for 2023. In 2022, the company's annual profits dropped 8.10 per cent YoY to Tk 23 crore. This decline is attributed to increased provisioning against stressed loans coupled with lower income from capital market investment.
Despite the drop in profits, the company paid a 10 per cent cash dividend for 2022. Back in 2021, the company had disbursed a 6 per cent cash and a 6 per cent stock dividend to its shareholders.
Bangladesh Finance Limited was enlisted in 2007, and its shares closed at Tk 15.20 per share on Thursday's DSE trading floor.
