National Housing net profits rise 56pc

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FE Report Net profits of National Housing Finance and Investments Limited (NHFIL), a housing lender, jumped 55.72 per cent last year, the company said. Its profit after tax soared to Tk 162.01 million in 2010 from Tk 104.04 million in 2009. Earnings per share (EPS) stood at Tk 31.16 in 2010 against Tk 20.01 in 2009, according to its annual report. "The NHFIL moved forward and achieved satisfactory growth in all the major areas of its operation," Latifur Rahman, chairman of the company, said. This was mainly because of the company's all out efforts and attaching top priority to diversify and expand its core business of housing finance with a view to maximising its income and profit, he added. Total portfolio of the company has increased by Tk 406.91 million to Tk 3974.92 million in 2010, indicating a growth rate of 11.40 per cent. Total operating income of NHFIL increased by 30.94 per cent to Tk 326.17 million. The cost of fund, however, has increased disproportionately affecting the company's profitability, he said, adding "We laid emphasis on generating increased income through increased investments." Drives for making new contracts with prospective real estate developers continued during the year, Mr Rahman said. The company has been participating in the SME scheme as well as SME Women Entrepreneur Scheme of the Bangladesh Bank. The company's financial footing and basic fundamentals were further consolidated during the year, its annual report said. The Return on Assets of the company increased from 2.0 per cent in 2009 to 3.29 per cent in 2010. Similarly Return on Equity of the company also rose from 14.47 per cent in 2009 to 20.93 per cent in 2010 and net asset value of NHFIL's per share rose to Tk 155.71 in 2010 which was Tk 142.06 in 2009, the report added. The company was enlisted in the Dhaka Stock Exchange and Chittagong Stock Exchange in January 2009, its shares have been trading at high prices with reasonable stability, attesting to the solid and strong fundamentals of the company, it added. Three manuals namely, the internal Control and Compliance Manual, Treasury Manual and Audit Manual are being updated as per guidelines of the central bank in order to strengthen the company's financial management through improved internal control and risk management practices, the NHFIL chairman said. As on December 31 2010, NHFIL lent out an amount of Tk 163.10 million under SME financing against the target of Tk 166 million, say company figures. It has also plan to open more branch offices in prospective areas of the country to augment sales and attract new clients. The company made a special summer offer for housing finance at reduced interest rate of 11.99 per cent during the year, it added. Considering the overall position as well as future requirements of the company, the annual report said, the Board of Directors recommended payment of 10 per cent stock dividend and 10 per cent cash dividend to the shareholders for 2010. Home mortgage loan, project mortgage loan, lease finance, term loan for industries, deposit schemes with attractive return and SME loan are the products and services of the NHFIL. According to the annual report, the company's authorised capital is Tk 2000 million while paid up capital is Tk 520 million. Of the outstanding portfolio, 58.91 per cent are in housing and 34.10 in lease finance, it added.