LankaBangla Finance's profit drops by 66% in Jan-Mar

LankaBangla Finance Limited has posted a 66% decline in its consolidated profits for the January to March quarter of 2023.

From January to March, the consolidated net profit after taxes of the non-bank financial institution (NBFI) stood at Tk7.90 crore, which was Tk23.46 crore in the same period of the previous year.

Its consolidated earnings per share (EPS) stood at Tk0.15, which was Tk0.43 from one year ago. Its net asset value per share was Tk19.41 end of March this year.

The company said in its disclosure that EPS decreased due to the interest rate cap imposed by the regulator since the second half of 2022, deteriorated asset quality due to the aftermath of Covid-19, and less brokerage commission due to fewer turnovers in both bourses.

The net operating cash flow per share decreased as deposit settlements and other asset settlements resulted in higher cash outflows. Its net asset value per share decreased due to the sale of shares of subsidiaries.

The company has informed that the board of directors of the company has approved the issuance of the 4th zero-coupon bond amounting to Tk200 crore in face value to generate liquidity to meet ongoing financing requirements, subject to the approval of the Regulatory Authorities.

LankaBangla Finance's board recommended a 10% cash dividend to its shareholders for last year.

The company has three subsidiaries named – LankaBangla Securities, LankaBangla Investment, and LankaBangla Asset Management Company Limited.