DBH Finance profit up 26pc in Q1, buoyed by higher interest income

FE REPORT
DBH Finance has reported a remarkable 26 per cent year-on-year growth in profit to Tk 196 million in the first quarter through March this year, backed by higher net interest income and strong investment earnings.
The leading non-bank financial institution (NBFI), which exclusively focuses on home loans, reported earnings per share of Tk 0.97 for the January-March quarter this year, compared to Tk 0.77 in the same quarter last year.
The company earned handsome income from investments in government securities alongside high interest income from home loans, according to its un-audited financial statements published on Sunday.
The company's net interest income jumped 31 per cent, while operating income increased by 8 per cent year-on-year in the quarter through March this year.
"Our results reflect our operational strength and customer-first approach," said Nasimul Baten, Managing Director and CEO of DBH Finance, in a statement on Sunday.
"Our sustained focus on efficiency, service excellence and asset quality continues to drive DBH Finance's success and set it apart from most other financial institutions in the country," the managing director added.
DBH Finance has always been able to keep operating costs down and mobilise funds at relatively lower costs due to its excellent market reputation, which has enabled the company to remain competitive in the market, industry insiders say.
The company had a loan portfolio of Tk 45.38 billion and a deposit portfolio of Tk 46.18 billion as of March this year.
The company's non-performing loans (NPLs) remained around 1 per cent of the total loan portfolio, the lowest in the industry. Lower provisioning against non-performing loans also helped the company secure higher profits.
The management remains optimistic about DBH's continued growth momentum, anticipating healthier profits in the coming quarters, driven by efficient fund management.
DBH Finance, formally known as Delta Brac Housing Finance Corporation, is the pioneer, largest, and specialist housing finance institution in the country's private sector.
DBH Finance has introduced Shariah-compliant deposit schemes and housing financing products and services .
The company's stock rose 0.26 per cent to Tk 38.3 per share on Sunday on the Dhaka Stock Exchange.
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