BD Finance's profit down 46pc on lower interest, investment income

Bangladesh Finance's profit plunged 46 per cent year-on-year to Tk 13.18 million in the second quarter through June this year mainly due to a decline in interest earnings and investment income.
The non-bank financial institution's consolidated earnings per share stood at Tk 0.07 for April-June 2025, down from Tk 0.13 for the same quarter a year earlier, according to a stock exchange filing on Sunday.
The NBFI's half-yearly profit also plummeted 63 per cent year-on-year to Tk 22.60 million in the period through June for the same reasons, the company said in its earnings note.
Despite the reduction in profit, the company's stock rose 1.87 per cent to Tk 10.90 per share on Sunday on the Dhaka Stock Exchange (DSE).
Market analysts said Bangladesh Finance had made a turnaround from a record loss last year, securing a profit in the first half of this year, which is a positive sign.
That may have renewed investor confidence in the company's future prospects.
Bangladesh Finance said its return to positive earnings had largely been driven by recoveries from stressed loans, leases, and advances.
Improved cost controls and financial discipline also boosted operating efficiency, reflecting early results of the company's ongoing restructuring efforts.
However, Bangladesh Finance faced operational liquidity challenges, with net operating cash flow per share (NOCFPS) turned Tk 0.16 in the negative for January-June this year from Tk 0.54 for the same period the year before.
"The decline in the net operating cash flow per share is primarily attributable to a reduction in net interest received, lower income from investments, and net repayments of borrowings, compared to last year's," said the company.
The company reported a negative consolidated net asset value per share of Tk 29.92 as of June this year from Tk 30.05 in the negative until December last year for accumulated retained losses that eroded its asset base and resulted in significant net liabilities.
Bangladesh Finance had suffered a record loss of Tk 7.83 billion in 2024, driven by, according to the company, allocation of additional interest suspense and provisions for stressed loans in compliance with Bangladesh Bank's regulatory requirements.
Earlier, the company endured losses worth Tk 1.05 billion for the first time in 2023, according to its audited financial statements.
Due to the staggering losses, the board recommended no dividend for the past two years --- 2023 and 2024. Subsequently, Bangladesh Finance was downgraded to 'Z' category in April this year.

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