Dhaka, Bangladesh (BBN) - Listed non-banking financial institutions (NBFIs) recorded a 166 percent growth in the first half of 2010, helped by booming share trading and diversified their operations.
During the January - June period of this year, the publicly listed NBFIs posted BDT 4.5 billion in net profits, up from BDT 1.7 billion in the same period a year ago, according to reports.
"Stock market operation has contributed substantially to such a phenomenal growth," Arif Khan, deputy managing director of IDLC Finance Ltd, was quoted by the Financial Express (FE), a local newspaper, as saying.
Prime Finance and Investment (PFI), IDLC Finance, LankaBangla Finance, Peoples Leasing and Financial Services Ltd (PLFSL), and United Leasing (ULC) emerged as top five performers, which saw their profits top 100 percent in the year's first half.
However, profit of Industrial Promotion and Development Corporation (IPDC) swung to the negative terrain, the newspaper said.
"Diversified operations are the key to such a remarkable growth," Akter H Sannamat, managing director of the PFI, told the FE. "Efficient management and skilled expertise also contributed," he added.
Prime Finance's profits were up by 321.73 percent to BDT 1.0 billion, holding the top position among its peers.
LankaBangla Finance came second as it recorded a profit of BDT 829.9 million. The firm's profits were just BDT 302.01 million in January-June period of the last year.
IDLC Finance was the distant third with BDT 491.75 million in profits. The company's profits, however, shot up by 197.52 percent from BDT 165.28 million in the same period a year ago.
Profits at Peoples Leasing stood at BDT 400.85 million, followed by United Leasing whose net income increased by 283.03 percent to BDT 251.81 million.
Profits of ILFSL during the period reached BDT 226.97 million, Uttara Finance's BDT 372.58 million, Union Capital BDT 169.61 million, Bangladesh Finance BDT 111.55 million, Bay Leasing BDT 126.21 million, BIFC BDT 59.25 million, NHFIL BDT 80 million.
The bottom five earners include Fidelity Asset, First Lease International, Premier Leasing, Phoenix Finance and Islamic Finance.
Islamic Finance managed to earn just BDT 51.08 million in January-June period, from BDT 40.22 million the year before.
Half-yearly profits of the three NBFIs - ICB, DBH and Midas Finance - were not available.
Currently, 29 NBFIs are operating in Bangladesh, of which 21 are listed with Dhaka Stock Exchange and Chittagong Stock Exchange. The listed NBFIs make up 12.47 per cent of the market capitalization.
BBN/SI/AD-16Aug10-10:32 am (BST)
