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.