IDLC Finance's total loan book increased by 17.39 per cent and now stands at BDT 83.9 billion in 2018.
NPLs reduced to 2.20 per cent from 2.77 per cent in the previous year, reflecting an improvement in portfolio quality. A total of 5,803 new loan clients were booked during the year and Net Interest Income grew by 5.71 per cent to BDT 4.22 billion, said a statement.
Business segment-wise, SME loan book grew by 12.43 per cent during the year to BDT 34.69bn, up from BDT 30.85 billion in the previous year. SME now comprises of 42.09 per cent of the company's total standalone loan book. The consumer portfolio - which comprises of Home Loans, Car Loans and Personal Loans - grew by 15.20 per cent during 2018 to reach BDT 27.82 billion. It now contributes 33.76 per cent of the lending basket. The company's Corporate loan division has posted a year on year growth of 37.88 per cent to reach a portfolio of BDT 19.90 billion.
On a standalone basis, IDLC Finance Limited maintained its prior level of Net Profit after Tax with a small growth rate of 1 per cent. However, on a consolidated basis, the company posted a 5 per cent decline in NPAT over the previous year, reporting an amount of BDT 2,171 million. This has been mainly caused by lower profits from subsidiaries. Earnings per share stands at BDT 5.76 as against BDT 6.13 at the end of 2017. ROE and ROA have been 16.55 per cent and 2.12 per cent against 21.15 per cent and 2.60 per cent respectively in the equivalent prior period. Book value per share rose to BDT 36.17, from BDT 33.41 at the close of 2017.
Arif Khan, CEO & Managing Director of IDLC Finance Limited said, "IDLC's standalone net profit grew very marginally by 1 per cent. However, given the market conditions, it is noteworthy to mention a few takeaways from our group's overall performance this year.
"In spite of a 7.26 per cent decline in Operating Income, mainly resulting from reduced Investment Income and Brokerage Fees, we have been able to restrict our Cost to Income ratio to less than 40 per cent, thanks to numerous process efficiency measures we have been adopting proactively," Arif Khan said.
He said: Our superior treasury management enabled us to continue the growth trajectory of our disbursements even at times when overall market liquidity conditions were comparatively dry, reflecting on the strength of our Balance Sheet. Net Profits of IDLC's 3 subsidiaries show de-growth following extraordinary results in 2017.
However, in 2018, the broad Index fell by 13.8 per cent (following a 24.0 per cent positive return in 2017), DSE 30 - the index for Blue Chip companies - fell by 17.6 per cent (26.1 per cent positive return in 2017) and average daily turnover in the major stock exchange dropped by 37 per cent compared to the previous year. Yet, our subsidiaries have shown great resilience and have outperformed the market as well as many of their peers."
Mr. Khan further added: Our bread and butter relies on our ability to deliver value to the SME, Consumer, Corporate and Capital Market customers. While we have been proving this in the competitive marketplace, we must continue to move quickly to new arenas in order to stay one step ahead of the curve and continue to generate profitable results for our investors.