IPDC Finance’s profit soars by 98.8% in Q1 2025

IPDC Finance PLC has reported a 98.8 percent year-on-year surge in net profit to Tk 3.7 crore for the January-March quarter of 2025, primarily driven by strong returns from its investments in government securities.

Earnings per share rose to Tk 0.09, up from Tk 0.05 in the same quarter of the previous year, according to a press release.

Despite a 22.9 percent rise in financing costs resulting from elevated deposit rates and consecutive policy rate hikes by Bangladesh Bank, the company's gross interest income increased by 16.1 percent to Tk 228.8 crore.

Total investment income rose sharply by 134.8 percent year-on-year to Tk 23.9 crore, bolstered by a remarkable 208.8 percent increase in income from government securities, which amounted to Tk 12.5 crore.

Net operating cash flow per share improved significantly, reaching Tk 4.86, compared to a negative Tk 12.39 in the corresponding period of the previous year. Meanwhile, Net Asset Value (NAV) per share edged up slightly to Tk 17.83.

"We are delighted with our first-quarter results, which demonstrate the resilience of our diversified business model," said Rizwan Dawood Shams, Managing Director of the non-bank financial institution (NBFI).

"By balancing risk-adjusted investments with prudent cost management, we have achieved robust profitability, even in the face of softening credit demand," he added.

"We remain committed to supporting our customers and contributing to Bangladesh's economic growth."

As of March 2025, IPDC's gross assets stood at Tk 7,951 crore, reflecting continued stability and growth. Customer deposits rose by 7.8 percent to Tk 5,578 crore, capturing an estimated 11 percent share of the NBFI deposit market.

Loans and advances grew marginally by 1.1 percent, while the overall investment portfolio remained strong, despite a modest decline of 3.3 percent.