IPDC Finance, a leading non-bank financial institution, has reported a net profit of Tk 341 million, the lowest in seven years, for the year 2023, largely due to higher provisions against loans and a decline in income from the stock market.
Even the non-bank financial institution (NBFI) registered a 62 per cent decrease in its net profit for 2023, compared to the previous year's profit of Tk 901 million.
As a result, the company's earnings per share (EPS) plummeted to Tk 0.92 in 2023, down from Tk 2.43 the year prior, according to its price sensitive information published on Thursday.
The company will hold its annual general meeting (AGM) on May 16 and the record date is on April 24.
However, the company did not disclose the detailed annual financial statements for 2023. Company secretary Samiul Hashim could not be reached for comments despite several attempts.
An official of the company, who declined to be named, said the net profit plunged due to higher interest payments to depositors and lenders, as well as lower income from investments, commissions, exchanges, and brokerages.
The impact of the downward trend in the capital market, a major income source for financial institutions, further exacerbated the profit reduction, he added.
Despite these financial challenges, the board of directors has recommended a 5 per cent cash and a 5 per cent stock dividend for 2023. In 2022, the company paid out a 10 per cent cash dividend.
The stock dividend has been declared so that the retained amount can be utilised to support smooth operational cash requirement as well as portfolio growth, said the company in its earnings note.
Also, the company has declared stock dividend out of its accumulated profit or retained earnings.
"Stock dividend has been recommended to strengthen the capital base of the company for supporting future business growth as well as higher loans portfolio growth aspiration in 2024," said the company.
Listed in 2006, IPDC's stock price experienced a notable surge of 9.79 per cent to close at Tk 25.80 on Thursday, compared to the previous day.
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