• Thursday, Apr 15, 2021
  • Last Update : 11:41 pm

IPDC has a superb 2020, too

  • Published at 12:51 am February 18th, 2021
IPDC Finance profit 2020

The 39-year-old NBFI posted a profit of Tk 70.5 crore for its 2020 financial year

IPDC Finance, Bangladesh’s first private-sector non-bank financial institutions in Bangladesh, posted a record year of profit in 2020 amid the pandemic like its competitor IDLC Finance.

The 39-year-old NBFI -- whose products and services ranges from corporate finance and advisory services in the corporate sector, middle market supply chain finance in the SME sector to retail wealth management and retail finances -- posted a profit of Tk 70.5 crore for its 2020 financial year, which runs from January to June, up 25.4 per cent year-on-year.

IPDC’s performance is particularly impressive seeing that it came in a year when the overall sector is struggling.

At the end of the third quarter of 2020, the 33 NBFIs’ bad loans stood at Tk 10,245 crore, up 49.8 per cent from a year earlier, according to data from the Bangladesh Bank. 

IPDC’s deposit collection was good amid the pandemic, according to Mominul Islam, its managing director and chief executive officer.

At the end of the third quarter of 2020, IPDC’s deposits stood at Tk 5,099 crore, up from Tk 4,636.1 crore at the end of 2019.

At the same time, the interest rate spread increased and the management cost was relatively low.

“The overall portfolio was better last year. All these factors helped to raise the earning per share in 2020,” he told Dhaka Tribune yesterday.

The NBFI has reserved an additional 1 percent provisioning for the upcoming days.

In 2020, IPDC consolidated its operating cash flow, which is the net amount of cash and cash-equivalents being transferred into and out of a business. 

At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows.

Positive cash flows indicate that a company is adding to its cash reserves, allowing it to reinvest in the company, pay out money to shareholders or settle future debt payments.

At the end of 2020, IPDC’s net operating cash flow per share -- which is all cash generated by its main business activities -- stood at Tk 20.58, in contrast to Tk 11.75 a year earlier.

Subsequently, the companyannounced a cash dividend of 12 per cent for shareholders for 2020. In 2019, it had announced a 10 per cent cash dividend and 5 per cent stock dividend.

Shares of IPDC, which was listed on the Dhaka bourse in 2006, gained 7.4 per cent in 2020.

Yesterday, they closed at Tk 26.8, down 2.9 per cent from the previous session.

77
Facebook 75
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail