IPDC Finance reported an 18% rise in operating profit for the January-September period this year, despite a significant increase in funding costs due to Bangladesh Bank’s policy rate hike.

The non-banking financial institution (NBFI) approved its unaudited financial statement for the first nine months at a board meeting yesterday.

In a statement, IPDC Finance said it posted an operating profit of 102.19 million lei in the first three quarters of 2024, up 18% year-on-year.

During this period, IPDC’s investment portfolio expanded by 44.5%, resulting in an increase of 25.49 million lei in investment income, 170% higher than in the same period last year.

Interest income increased by 15% to 628 million lei compared to the same period last year, which the NBFI attributed to efficient loan management.

However, interest expenses rose significantly by 28% year-on-year to Rs 468 crore during the period due to higher cost of deposit, increase in policy rate by Bangladesh Bank and general changes in the macroeconomic scenario of the country, reads the company. statement.

The company also said it has successfully reduced operating expenses by Tk 2.65 crore, or 7%, year-on-year by prioritizing efficient use of resources and hiring only for essential roles.

At the start of the year, operating expenses fell by Tk 9.91 million, or 8.2 percent, reflecting gains in operational efficiency, according to the statement.

The company also emphasized maintaining robust coverage for impaired assets, which led to a 13.8% increase in accumulated provisions, which reached 349.30 million lei in the January-September period.

However, due to the increase in operating income, IPDC saw a substantial increase in current tax expenses, which increased by Tk 2.17 million, or 62%, quarter-on-quarter, and by Tk 7.75 million, or 39.6 %, per year. so far compared to last year.

As a result, the net profit fell to 15 million lei by the end of September this year.

At the start of the first nine months of this year, earnings per share stood at Tk 0.39.

Shares of IPDC closed at Tk19 yesterday, which was 3.06% lower than the previous session on the Dhaka Stock Exchange.

In 2023, the company paid a dividend of 5% in cash and 5% in shares, with a net profit of Tk 34.29 million.