DBH Finance PLC has reported a year-on-year profit decline of 33.58 per cent in the first quarter of 2024 due to keeping a provision, which is the lowest in the last six years.
The housing finance institution posted Tk 17.24 crore in net profit in the January-March quarter this year, compared to Tk 26.10 crore recorded in the same quarter last year, as per a filing on the Dhaka Stock Exchange (DSE) submitted Monday.
The company stated that due to the lifting of floor price, share price of some blue chip shares dropped significantly, and the company has to keep a provision of Tk 8.64 crore against its capital market investments – which is 9.4 per cent of investment in listed securities.
This resulted in less profit after tax, and the profit has decreased for Q1 of 2024, compared to the preceding year, it added. Besides, loan disbursement rose by Tk 50 crores in Q1 of 2024, compared year-on-year.
The listed company’s earnings per share (EPS) for the first quarter of 2024 fell to Tk 0.87 from Tk 1.31 for the first quarter of 2023. However, its net asset value (NAV) per share increased to Tk 44.50 at the end of March this year, from Tk 43.63 at the end of December 2023.
The financial company’s net operating cash flow per share (NOCFPS) was negative Tk 1.86 for the January-March quarter of 2024, compared to Tk 7.93 posted in the same quarter last year.
Deposits have decreased by Tk 155 crores in Q1 of 2024 compared to Q1 of 2023 due to an increase in deposit rates from the end of 2023, caused by the deviation in NOCFPS.
According to the financial report, the company earned interest income of Tk 169.05 crore for the year 2024, compared to the income of Tk 133.93 crore in the same period previous year.
Income from investments totaled Tk 11.62 crore in the first quarter of 2024, compared to Tk 3.09 crore in the same period last year. The company's investment data showed total investment of Tk 847.73 crore, compared to Tk 516.50 crore in the same period last year.
Among the gross investments, investment in government securities was Tk 749.50 crore, compared to Tk 418.55 crore in the same period last year. And investment in other sectors totaled Tk 98.23 crore, compared to Tk 97.95 crore in the same period last year.
For 2023, the NBFI made a payment of 15 per cent cash to its shareholders.
Since its inception in 1996, the company has registered commendable growth in creating homeownership all over the country.
The NBFI has a keen focus on financing homes for the population, and is in the process of launching its Islamic Wing, which will allow it to cater to a wider range of investment and deposit products for its clients.
Its share price was at Tk 38.20 on the DSE during Monday’s trading session.
Among all banks and financial institutions of Bangladesh, only DBH has secured the highest "AAA" credit rating for 15 consecutive years. The level of credit rating indicates the financial safety, security and strength of the institution.
Sponsor-directors own 51.32 per cent stake in the NBFI, while institutional investors own 23.72 per cent, foreign investors 11.39 per cent and general public 13.57 per cent until March 2024, shows the DSE data.
