A non-banking housing finance institution is facing strong competition from a state-run entity that offers home loans at significantly lower interest rates, ranging between 8.5% and 10%, compared to its rates of 13.5% to 15.5%. The institution’s cost of funds in FY23 was 7.4%, with 83.3% of its funding from deposits. Its loan portfolio declined by 0.5% on average from 2019 to 2023, including a 1.9% decline in 2023. Despite a low NPL ratio of 0.9%, its net interest margin fell from 3.7% in 2021 to 2.4% in H1 2024. It reported a 33.58% YoY profit decline in Q1 2024, with a net profit of Tk 17.24 crore, EPS of Tk 0.87, and NAV per share of Tk 44.50. The company’s net operating cash flow per share was negative Tk 1.86. It raised Tk 550 crore through a bond issue, with Tk 350 crore subscribed by an international organization.
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