By the end of the fourth quarter, the company has earned a net profit of Rs 190.7 million. The net profit increased by 73.64 percent compared to Rs 109.8 million the review period of the last FY.
Net interest income: Net interest income increased by 7.47 percent to Rs 227.4 million from Rs 211.6 million in the last FY.
Operating Profit: The operating profit of the company increased from Rs 157.6 million to Rs 272.7 million.
The main reason for this jump in profitability is that microfinance has been able to repay bad loans and keep interest expenses under control.
Increase in dividend capacity: The increase in profit has also directly improved the distributable profit. The total distributable profit of the microfinance company has reached Rs 136.1 million by the review period, up 50.76 percent from Rs 90.3 million of the last FY. Based on this, the microfinance company's annual distributable earnings per share has reached Rs 10.13.
Controlling bad loans: First Microfinance has significantly reduced the number of non-performing loans that had become the biggest headache for the microfinance sector. The NPLs have come down to 2.88 percent from 3.84 percent of the last FY.
Reduction in Cost of Resources: The company has made good progress in managing its interest expense. The cost of funds has come down to 4.75 percent from 6.22 percent. Similarly, the base rate has been reduced from 7.56 percent to 6.41 percent.
