LankaBangla Finance PLC reported a sharp year-on-year decline in its operating cash flow — down by Tk 194.83 million in the first nine months of 2025 — mainly due to increased disbursement of loans and advances to customers.

The disclosure triggered a heavy sell-off in the market on Wednesday, sending the company’s shares tumbling over 12% on the Dhaka Stock Exchange (DSE) and 13% on the Chittagong Stock Exchange (CSE).

The non-bank financial institution’s stock closed at Tk 14.40 on the DSE, down from Tk 16.50 in the previous session.

According to the company’s third-quarter (Q3) un-audited financial statement published by the DSE, LankaBangla’s consolidated earnings per share (EPS) stood at Tk 0.34 for July–September 2025, compared to Tk 0.46 during the same period of 2024. For the nine-month period of January–September 2025, the consolidated EPS dropped to Tk 0.54 from Tk 0.67 a year earlier.

The consolidated net operating cash flows per share (NOCFPS) also decreased to Tk 3.41 for January–September 2025 from Tk 5.00 in the corresponding period of 2024.

The consolidated net asset value (NAV) per share, however, rose slightly to Tk 18.87 as of September 30, 2025, from Tk 18.32 as of December 31, 2024.

The company attributed the earnings drop mainly to a decrease in investment income, higher loan loss provisions, and an increased cost of funds on borrowings during the period.

Earlier disclosures showed similar pressure on the company’s performance. In Q1, LankaBangla reported a decrease in consolidated EPS due to higher operating expenses and increased provisions for leases and loans. Its consolidated NOCFPS also fell mainly because of higher disbursements of loans and advances to customers, though NAV per share increased on the back of retained earnings.

In Q2 (April–June 2025), consolidated EPS improved slightly to Tk 0.18 from Tk 0.05 in the same quarter of 2024, while EPS for the first six months stood at Tk 0.21 compared to Tk 0.20 in the previous year. Consolidated NOCFPS fell to Tk 0.09 from Tk 0.14 during the same period, while NAV per share rose to Tk 18.53 as of June 30, 2025, from Tk 18.32 at the end of 2024.

The company last held its annual general meeting (AGM) on September 29, 2024. Over the past four years, it has paid consistent dividends — 10% each in 2023, 2022, and 2021, and 12% in 2020.

Wednesday’s steep price fall reflected investor concern over the company’s weakening profitability and cash flow, marking one of the sharpest single-day losses among financial sector stocks on both bourses.