BD Finance Q2 profit plunges 46pc on income decline
Business Report :
Bangladesh Finance’s profit dropped 46 per cent year-on-year to Tk 13.18 million in the April-June quarter of 2025, primarily due to reduced interest earnings and lower investment income.
According to a stock exchange filing on Sunday, the non-bank financial institution (NBFI) reported consolidated earnings per share (EPS) of Tk 0.07 for the second quarter, down from Tk 0.13 in the same period a year earlier.
The company’s half-yearly profit also saw a sharp 63 per cent year-on-year decline, falling to Tk 22.60 million in the first six months of 2025, driven by the same factors.
Despite the reduction in profit, the company’s stock rose 1.87 per cent to Tk 10.90 per share on Sunday on the Dhaka Stock Exchange (DSE).
Market analysts said Bangladesh Finance had made a turnaround from a record loss last year, securing a profit in the first half of this year, which is a positive sign.
That may have renewed investor confidence in the company’s future prospects.
Bangladesh Finance said its return to positive earnings had largely been driven by recoveries from stressed loans, leases, and advances.
Improved cost controls and financial discipline also boosted operating efficiency, reflecting early results of the company’s ongoing restructuring efforts.
However, Bangladesh Finance faced operational liquidity challenges, with net operating cash flow per share (NOCFPS) turned Tk 0.16 in the negative for January-June this year from Tk 0.54 for the same period the year before.
“The decline in the net operating cash flow per share is primarily attributable to a reduction in net interest received, lower income from investments, and net repayments of borrowings, compared to last year’s,” said the company.
The company reported a negative consolidated net asset value per share of Tk 29.92 as of June this year from Tk 30.05 in the negative until December last year for accumulated retained losses that eroded its asset base and resulted in significant net liabilities. Bangladesh Finance had suffered a record loss of Tk 7.83 billion in 2024, driven by, according to the company, allocation of additional interest suspense and provisions for stressed loans in compliance with Bangladesh Bank’s regulatory requirements.
