IDLC Finance secured a 22 per cent year-on-year growth in consolidated profit to Tk 622 million in January-March (1Q) 2026, backed by a significant rise in operating income.
It reported an operating income of Tk 2.44 billion in the first quarter of 2026, a 31 per cent increase from the same quarter of the previous year.
The company's relatively insignificant non-performing loans (NPLs), at 4.4 per cent, were also an advantage, while many of its peers performed poorly due to a heavy volume of defaulted loans. The non-bank financial institution appears to have worked on its NPLs, bringing them down further from 4.6 per cent last year.
Sources at IDLC Finance said their prudent and strict credit policy had played an important role in maintaining such a low NPL ratio against the industry average of around 30 per cent.
As an extra precautionary measure, the company has ensured a provision coverage of Tk 108 against a requirement of every Tk 100.
"This demonstrates IDLC's disciplined credit risk management practices and proves the company's commitment to protecting its balance sheet and maintaining long-term financial resilience," reads a press release issued by the company.
Besides, the effective use of shareholder capital helped drive bottom-line growth in the quarter to March compared to the same quarter of the previous year.
The company's managing director, M Jamal Uddin, said their effective operational strategy was reflected in the profit growth in 1Q of the year.
"With a strengthening loan book, improving asset quality, and subsidiaries that are pulling their own weight, IDLC enters the rest of 2026 from a position of earned confidence," said the IDLC release, referring to the managing director.
A significant rise in income derived from investments and interest income facilitated the company's operating income.
Interest and finance income advanced 8 per cent year-on-year to Tk 4.25 billion, while investment income jumped 104 per cent year-on-year to Tk 1.34 billion in the first quarter of this year.
Investments in Treasury bonds and bills, along with selective stocks, led to such robust growth in investment income, company officials said.
Kazi Mahmood Sattar, chairman of IDLC Finance, said a clear focus on long-term value for the company's stakeholders and a commitment to a prudent and consistent operational strategy were reflected in the financial statements of the first quarter.
According to the financial statement, IDLC's earnings per share (EPS) stood at Tk 1.43 in 1Q 2026, compared to Tk 1.17 in the same quarter of the previous year.
Net operating cash flow per share (NOCFPS) stood at Tk 12.87 in 1Q 2026, up from Tk 2.42 in the same quarter of the previous year.
IDLC Finance, an 'A' category company, has three subsidiaries - IDLC Securities, IDLC Investments, and IDLC Asset Management.
Meanwhile, the company's stock price closed at Tk 36.70 per share on Wednesday, unchanged from the previous trading session on the Dhaka Stock Exchange.
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