NMB Microfinance Soars to Profit: Q4 Results Show Impressive Turnaround!
NMB Microfinance, a prominent player in the microfinance sector, has announced a remarkable turnaround, transitioning from a loss in the previous fiscal year to a significant profit in the recently concluded financial year. The unaudited financial statements for the fourth quarter reveal a strong performance, indicating a positive trajectory for the microfinance institution.
Financial Performance Highlights:
According to the financial results released, NMB Microfinance recorded a net profit of NPR 63.8 million by the end of the last fiscal year. This is a substantial improvement compared to the loss of NPR 52.9 million reported during the same period in the prior year. This profitability signals the financial health and growth potential of the company.
Key Drivers of Profitability:
The primary drivers behind this impressive turnaround are attributed to a significant increase in net interest income and a reduction in impairment charges. These factors have collectively contributed to boosting the overall profit margin of the institution, demonstrating effective financial management.
Detailed Breakdown:
The fourth quarter saw a 61.83% surge in NMB Microfinance’s net interest income, reaching NPR 435.5 million. Furthermore, net fee and commission income increased by 42.25% to NPR 58.8 million. The company’s operating profit also improved, rising to NPR 68.8 million, a marked contrast to the operating loss of NPR 53.2 million in the prior year. The financial performance is a positive sign for shareholders and investors.
Moreover, NMB Microfinance witnessed a decrease in impairment charges, which went from NPR 11 million to a negative NPR 30.5 million. This reduction positively impacted the bottom line, further solidifying the financial gains.
Operational Metrics:
During the reporting period, the microfinance institution mobilized NPR 5.9 billion in deposits and borrowings, while disbursing loans worth NPR 6.75 billion. These loan portfolios indicate continued expansion and customer engagement within the microfinance market.
Key Financial Ratios:
With a paid-up capital of NPR 721.4 million, the company has a distributable profit of NPR 47.5 million and a reserve fund of NPR 292.9 million. The earnings per share (EPS) stand at NPR 8.85, while the distributable earnings per share is NPR 6.59. The net worth per share is NPR 140.61. These key financial indicators demonstrate the financial strength and investment potential of NMB Microfinance.
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