TBT DESK: IPDC Finance PLC, one of Bangladesh’s prominent non-bank financial institutions, has reported a robust 45.3% rise in net profit for the first half of 2025, underscoring the company’s resilience amid rising interest rates and economic headwinds.

According to its unaudited financial statements, IPDC’s net profit reached Tk 150 million during the January–June period, up from Tk 103 million a year earlier. The earnings per share (EPS) rose accordingly to BDT 0.37 from Tk 0.25.

This impressive growth comes despite mounting pressure from increased funding costs. Interest expenses climbed 22.8% to Tk 3,690 million, largely driven by successive policy rate hikes by Bangladesh Bank and increased deposit costs. In contrast, gross interest income grew by a more modest 9.9%, reaching Tk 4,643 million.

What helped tip the balance in IPDC’s favour was a remarkable 158.6% surge in investment income, totalling Tk 565 million. The company attributed this jump to improved returns from treasury investments and favourable trends in the capital market.

“Despite challenges in the macroeconomic environment and rising funding costs, our strategic focus on treasury efficiency, risk management, and operational discipline enabled us to deliver solid results,” said Rizwan Dawood Shams, Managing Director of IPDC Finance PLC. “Our performance reflects our commitment to building a resilient and forward-looking financial institution.”

Operating income grew modestly by 4.1% year-on-year to Tk 1,601 million. On a quarterly basis, the company posted an operating income of Tk 844 million in Q2’25, up 11.4% from the previous quarter.

Efforts to rein in costs also bore fruit. Operating expenses increased by just 5% to Tk 781 million, helping push operating profit up 3.2% year-on-year to Tk 820 million. For the second quarter alone, operating profit reached Tk 446 million — a healthy 19.5% rise from Q1.

On a quarterly comparison, net profit for April–June 2025 stood at Tk 114 million, reflecting 33.8% growth from the same period last year.

The company’s balance sheet also expanded steadily. As of June 2025, IPDC’s total loans, leases, and investment portfolio stood at Tk 84,384 million — a 6.8% increase from December 2024. Its investment portfolio, which includes government securities and other financial instruments, grew by 36.4%. Loans and advances posted a 2.7% growth during the same period.

Customer deposits saw notable momentum, rising 9.4% in H1’25 to Tk 56,646 million, signalling a measure of regained confidence in the financial sector.

IPDC’s net asset value (NAV) per share stood at Tk 16.79 as of June, while net operating cash flow per share (NOCFPS) recovered strongly to Tk 8.53 — a sharp turnaround from a negative Tk 9.29 in June last year.

With a steady hand on operations and a focus on long-term value creation, IPDC remains optimistic about navigating the evolving financial landscape, while continuing to support inclusive growth and sustainable development.