Staff Reporter, Dhaka : IPDC Finance PLC has reported a strong financial performance for the year ended 31 December 2024, posting an operating profit of BDT 1,765 million, marking a substantial 35.8% year-on-year growth.

As of year-end 2024, IPDC’s gross asset portfolio stood at BDT 79,048 million, reflecting a 5.3% increase compared to the previous year. The company’s investment portfolio—comprising government securities and other financial instruments—recorded a remarkable 110.5% growth during the period. This contributed significantly to investment income, which increased by BDT 452 million, representing a 194.6% year-on-year rise.

Despite a slight contraction in the loan portfolio, gross interest income rose by 18.5% year-on-year to BDT 8,811 million, primarily driven by elevated interest rates. However, interest expenses also increased by 28.1%, owing to higher deposit costs, Bangladesh Bank’s policy rate hikes, and overall liquidity stress in the financial sector.

Total operating income reached BDT 3,242 million in 2024, up by 11.7% from the previous year, driven predominantly by robust investment returns. Net profit stood at BDT 363 million, representing a 5.9% year-on-year growth.

In response to the evolving macroeconomic environment, IPDC adopted a cautious stance on corporate lending, with strategic emphasis on small-ticket SME financing, consumer lending, and risk-free investments. Notably, investment in government securities more than tripled—from BDT 1,612 million in 2023 to BDT 5,206 million in 2024—ensuring a stable and secure income stream amid challenging economic conditions.

IPDC maintained prudent credit risk management practices throughout the year, containing the non-performing loan (NPL) ratio at 5.83% despite significant external headwinds. To safeguard portfolio quality, the company increased its accumulated provisions by 18.4%, which stood at BDT 3,571 million at the end of 2024.

Through strategic resource optimization, selective hiring, and enhanced operational efficiency, IPDC reduced its operating expenses by BDT 124 million or 7.8% year-on-year, while maintaining organizational stability and productivity.

Customer deposits stood at BDT 51,761 million as of 31 December 2024, registering a modest 2.1% growth, despite weakened customer sentiment across parts of the financial sector. IPDC continued to hold a robust market presence, securing over 11% of total deposit market share among non-bank financial institutions (NBFIs).