IDLC Finance PLC reported a consolidated net profit after tax of BDT 1,254 million for the first three quarters of 2024, reflecting significant growth of 25.30 per cent compared to the same period in the past year, says a press release.
During these nine months, customer deposits grew by 2.30% compared to 2023, totalling Tk 82.32 billion. The group strategically focused on optimising portfolio quality to emphasise sustainable growth by ensuring optimal loan book size.
As of the end of September, the portfolio stood at Tk 111.7 billion.
Despite recent economic and political challenges, both at home and abroad, IDLC managed to maintain an annualised ROA of 1.14 per cent and an ROE of 8.65 per cent (compared to 0.88 per cent and 7.29 per cent respectively, booked for the same period in 2023), demonstrating improved efficiency compared to the previous year.
The Non-Performing Loan (NPL) ratio, while slightly higher at 4.98 per cent, remains well below the industry average, with a coverage ratio of 100.72 per cent.
The coverage ratio indicates the extent to which the non-performing loans are covered by provisions, reflecting the group鈥檚 ability to manage potential credit losses effectively.
IDLC鈥檚 subsidiaries鈥擨DLC Securities Limited, IDLC Investments Limited, and IDLC Asset Management Limited鈥攁ll delivered robust performances by the end of the quarter, contributing to the group鈥檚 positive results.
M Jamal Uddin, CEO and managing director of IDLC Finance PLC, expressed satisfaction with the financial performance.
鈥極ur nine-month financial results continue to demonstrate our ability to execute effectively, even in a challenging and volatile macroeconomic backdrop. Our agile fund management enabled us to optimise returns across our core lending and capital markets businesses. Operating income increased by 11.32% to BDT 5,263 million, while operating expenses grew by only 2.18%,鈥� he said.
He added, 鈥榃e remain committed to sustaining this momentum and delivering exceptional value for our shareholders in the future.鈥�
Jamal Uddin also outlined the key strategies for continued success.
鈥榃ith deposit-advances margins under pressure and competition intensifying, success for financial institutions in the coming years will hinge on improving customer service, portfolio quality, and operating efficiency. At IDLC, we are continuously enhancing our initiatives to achieve these goals, setting us apart in the competitive landscape,鈥� Jamal Uddin said.
