Bangladesh Finance and Investment Company – a non-bank financial institution popularly known as BD Finance – posted a 57.67% increase in its net profit in the January-March quarter.
Its total operating income also rose by 39%.
According to company financial statements, the consolidated profit after tax stood at Tk9.24 crore and the earnings per share (EPS) at Tk0.50.
In the same quarter of the previous year, the consolidated profit was Tk5.86 crore and EPS Tk0.35.
In the January-March quarter, the total operating income rose to Tk21.51 crore, from Tk15.44 crore in the same period of the previous year.
In its balance sheet, BD Finance, which got listed on local stock exchanges in 2007, said the consolidated EPS increased because of a reduction in the cost of funds which led to a rise in net interest margins.
The company also realised capital gains from investments in shares and brokerage commission, compared to the same period of the previous year, the balance sheet added.
In fiscal year 2019-2020, the company reported a 65% growth in its net profit after tax, to Tk31.45 crore from Tk19.06 crore, in the previous year.
It recommended a 12% dividend – 6% cash and 6% stock – for shareholders.
"Bangladesh Finance signed a memorandum of understanding (MoU) with Sovereign Infrastructure Group (SIG) on April 08 that will serve as a long-term collaboration framework intended to enable SIG to mobilise US capital market investors into Bangladesh infrastructure projects through BD Finance," BD Finance said in its financial statements.
"SIG on a best efforts basis will seek to structure and finance up to $2 billion of BD Finance's project pipeline over the next two years in Bangladesh."
"SIG will also acquire at least 4% of ordinary shares in BD Finance during the term of the memorandum and SIG shall be guaranteed a position on the board of directors of BD Finance. As of reporting date, there is no financial impact of the MoU," it added.
Bd Finance started in 1999 with the prime objective of delivering financial services.
It has two subsidiaries – BD Finance Securities Limited (BD Securities) and BD Finance Capital Holdings Limited (BD Capital).
BD Finance holds 56.34% shares in its first subsidiary BD Securities, and 99.972% shares in BD Capital.
As of March 2021, sponsors and directors hold 30.87%, institutional investors 14.36%, and general investors hold 54.77% shares of the non-banking financial institution.