Housing authority suffers a loss of TK 10.31 crore from October to December period
National Housing Finance PLC, a leading non-bank financial institution (NBFI) in Bangladesh, recently reported a loss for the financial year ended 31 December 2024. The loss was primarily attributed to increased PLC costs and non-core expenses related to transactions, acquisitions, and industry-related activities.
The company's net profit dropped by a staggering 98% compared to the previous year, posting just Tk29 lakh for the full year 2024. The loss was further evident in the January-March quarter of 2025, where the net profit decreased by 20% to Tk2.82 crore compared to the same quarter in the previous year.
These losses were mainly due to significant non-core costs incurred during 2024, which included transaction-related legal and other costs, construction industry-related costs, and expenses related to technology upgrades. Although the Group had some non-recurring gains from acquisitions, such as gains from reversal of contingent consideration and gains on bargain purchases, the net effect was a positive net non-core cost of $529,000 in 2024.
The loss in Q4 2024 significantly contributed to the overall annual loss for the year. Despite these losses, the Group managed its financial resources prudently, maintaining a positive net cash position after bank borrowings, with amortisation of debt extending through 2029.
In addition to the financial losses, National Housing's total classified loans jumped by 24% to Tk159.43 crore at the end of 2024. The increase in classified loans led to a surge in provisioning expenses, which soared by 95% to Tk21.93 crore.
Despite the losses, the company's board has recommended a 10% cash dividend for the year, subject to approval from the Bangladesh Bank. To disburse the proposed dividend, the NBFI will require Tk11.70 crore, meaning a portion will be paid from its retained earnings, which currently stand at Tk30.52 crore.
As of March 2025, National Housing's total fixed deposits stood at Tk1,135.74 crore, a decrease of 2.58% from the same time the previous year. The annual general meeting (AGM) to approve the dividend is scheduled for 21 September, with the record date set for 30 July.
National Housing shares closed 0.41% lower at Tk24.30 on the Dhaka Stock Exchange on Thursday. The company started its business in 1998 and got listed on the capital market in 2009. Currently, the company operates with nine branches covering Dhaka, Chattogram, Bogura, Rangpur, Gazipur, Feni, and Rajshahi districts.
The market capitalization of National Housing stands at Tk285 crore. In the first quarter of 2025, National Housing's earnings per share stood at Tk0.24, a decrease from Tk0.30 in the same quarter of the previous year. At the end of March 2025, National Housing's total disbursed loans stood at Tk1,376.64 crore, lower than the previous year in the same month.
In the October-December quarter of 2024, National Housing Finance PLC reported a loss of Tk10.31 crore. However, the company's operating income rose by 8% year-on-year to Tk52.42 crore in 2024. The company's current paid-up capital is Tk117 crore.
The share distribution among various stakeholders includes sponsors and directors holding 50.57%, the government holding 9.34%, institutional investors holding 11.25%, and the rest 28.84% held by the general shareholders.
[1] Information sourced from the company's annual report 2024.
- Despite the significant losses incurred by National Housing Finance PLC during 2024, which were due to increased expenses in various sectors such as transactions, acquisitions, and industry-related activities, they managed to maintain a positive net cash position after bank borrowings, with amortization of debt extending through 2029.
- In the realm of personal-finance and business, National Housing Finance PLC, despite facing a 98% drop in net profit compared to the previous year and a surge in provisioning expenses due to increased classified loans, still recommended a 10% cash dividend for shareholders, subject to approval from the Bangladesh Bank.
