IDLC Finance profit jumps 22% in Q1 on Treasury bond, stock market gains

IDLC Finance PLC, the country's leading non-bank financial institution, reported a 22% year-on-year increase in its consolidated net profit for the first quarter of 2026, primarily driven by robust returns from government securities and subsidiary operations. 

According to the company's unaudited financial statements, its consolidated net profit stood at Tk62.24 crore for the January-March period, up from Tk50.87 crore in the corresponding quarter of the previous year.

The significant bottom-line growth pushed the company's consolidated earnings per share (EPS) to Tk1.43 at the end of the first quarter, compared to Tk1.17 during the same period in 2025. 

In its financial disclosure, IDLC attributed this performance to a sharp increase in investment income and higher earnings from its brokerage and exchange commissions. Specifically, the firm earned Tk91.58 crore from investments in Treasury bonds and realised Tk34.71 crore as capital gains from the stock market. 

However, the quarter also presented some challenges as the company navigated a shifting interest rate environment. IDLC reported that its net interest income decreased by Tk9 crore, while other operating income also saw a decline of Tk4 crore. On the cost side, operating expenses rose by Tk7 crore.

Furthermore, the firm increased its financial cushions, with provisions for loans and investments rising by Tk14.30 crore. The tax burden also intensified, as the provision for tax increased by Tk25.50 crore during the three-month period. Despite these headwinds, the substantial gains from the investment portfolio allowed the aggregate net profit after tax to increase by Tk11.40 crore.

Regarding asset quality, IDLC Finance reported that its classified loans stood at Tk580.66 crore at the end of March 2026. This accounts for 4.78% of the company's total disbursement, a figure that remains relatively stable compared to the broader industry average for the non-bank financial sector.