GSP Finance Company (Bangladesh) faced a significant financial setback, reporting a loss of Tk 667 million for the nine months ending September 2023, compared to a profit of Tk 98.84 million in the same period in 2022. The consolidated EPS plummeted to Tk 4.25 in the negative, a stark contrast to the positive Tk 0.63 EPS recorded in the corresponding period of 2022.
The losses were attributed to a substantial decline in interest income from loans, coupled with a notable increase in interest expenses on borrowings and deposits. GSP Finance’s interest income fell by 69%, amounting to Tk 172 million, while interest payments surged over 17% to Tk 295.88 million during the nine-month period of 2023. The stagnant stock market, a major income source for non-bank financial institutions, also contributed to the company’s challenges, leading to a 47% decline in net investment income.
The company’s financial struggles are further underscored by its failure to generate expected capital gains and a significant increase in provisions for leases, loans, advances, and investments, which rose by 260% year-on-year to Tk 550 million in January–September 2023.
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