- Impressive growth in profits and incomes
The company has earned a net profit of Rs 98.4 million in the review period. The net profit increased by 337.44 percent compared to the corresponding period of the last FY.
With this increase in profit, the earnings per share of the company also reached Rs 52.53, which is one of the best in the microfinance sector.
- Net interest income up by 104.8%
The net interest income of the microfinance has increased to Rs 226 million compared to Rs 110.3 million of the last FY. There are two main reasons behind this growth:
Improvement in interest income: Interest income has increased from Rs 265.9 million to Rs 383.6 million.
Interest rate differential: The spread rate of microfinance has increased from 6.23 percent to 8.88 percent. The margin of profit of microfinance has widened as the cost of funds has come down from 8.53 percent to 6.34 percent.
- The main reason behind the increase in profits: Write Back
Effective loan recovery and provisioning system of microfinance has played a major role in the significant increase in profit of the third quarter.
Impairment Charge Reverse: The company had maintained provision for possible losses of Rs 24.5 million in the review period of the last FY. In the third quarter of the current FY, it wrote back Rs 9.4 million. This has directly boosted the profitability of microfinance.
Controlling Bad Loans: The company has been able to reduce non-performing loans from 6.84 percent to 5.14 percent.
- Financial Position and Dividend Capacity
Reserve Fund: The company maintained reserve fund of Rs 118.4 million during the review period. In the review period of the last FY, it had reserve loss of Rs 60 million.
Dividend Potential: The microfinance company has a distributable profit of Rs 26.1 million, which makes the immediate dividend ratio of the microfinance company 10.45%.
Net worth per share: The net worth per share of the microfinance company has improved to Rs 157.84.
