IPDC Finance posts strong 79pc profit growth in Q1

IPDC Finance reported a robust 79 per cent year-on-year growth in profit to Tk 65 million in the January-March quarter this year, driven by higher net interest income, strong investment earnings, and disciplined cost management.
The non-bank financial institution's earnings per share (EPS) rose to Tk 0.16 in the first quarter this year from Tk 0.09 in the same quarter last year, reflecting a notable recovery in profitability despite a challenging macroeconomic environment.
"Our first-quarter performance reflects the resilience of IPDC's business fundamentals and the disciplined execution of our strategic priorities," said Rizwan Dawood Shams, Managing Director of IPDC Finance, in a statement.
"We remain committed to maintaining sound risk management practices and creating long-term value for all stakeholders while supporting Bangladesh's evolving economic aspirations," he added.
The company's operating income grew 24.4 per cent year-on-year to Tk 942 million during the quarter, while gross interest income increased 6.01 per cent to Tk 2.43 billion, supported by sustained asset portfolio deployment and prudent lending activities.
Meanwhile, interest expenses rose at a slower pace of 1.74 per cent to Tk 1.84 billion due to easing funding costs.
As a result, net interest income climbed 22.33 per cent year-on-year to Tk 581 million, marking a reversal of the margin pressure experienced through much of 2025.
Investment income emerged as a major growth driver, rising 32.51 per cent to Tk 317 million, backed by higher yields from government securities and the expansion of the treasury portfolio.
Commission and brokerage income also posted a 13.29 per cent increase, while operating expenses rose only 3.52 per cent year-on-year to Tk 397 million, helping profit before provisions surge 46 per cent in the quarter through March this year.
Despite the disclosure, IPDC's stock lost 0.54 per cent to Tk 18.3 per share on Monday.
Annual performance
IPDC also secured a 25.4 per cent year-on-year growth in profit to Tk 455 million in 2025, supported by robust investment income.
The company delivered the performance in a difficult business environment marked by inflationary pressures, leveraging a well-managed portfolio and improved operational efficiency.
"The results were supported by robust investment income, higher interest earnings, strategic portfolio diversification, and disciplined cost management," the company said in a statement.
The managing director said the company strengthened its earnings base through diversified income streams and prudent cost management.
It maintained tight control over operating expenses through resource optimisation, selective recruitment, and efficiency gains.
Based on the profit growth, the board of directors recommended a 5 per cent cash dividend and a 5 per cent stock dividend for 2025.
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