The company earned a net profit of Rs 138.2 million during the period which is 35.76 percent more compared to Rs 101.8 million of the correspondign period of the previous FY.
During the period, its net interest income has decreased to Rs 195 million from Rs 223.6 million of the review period of the previous FY. The decline in interest income is due to the contraction in the net loan flow.
The main reason for the increase in operating profit and net profit of the company is due to the reversal of the potential loan loss arrangement of Rs 55.8 million.
The total distributable profit of the microfinance company has reached Rs 114.1 million in the review period. Accordingly, the microfinance company has a distributable earnings of Rs 11.04 per share.
The cost of funds has come down to 4.87 percent from 6.17 percent in the previous FY. As a result, the interest expenses of microfinance has come down. The base rate of microfinance has also come down from 6.96 percent to 5.53 percent, which has helped the partner microfinance institutions to provide loans at cheaper rates.
In the review period, the non-performing loan has increased to 3.92 percent from 3.34 percent. However, the fact that the net non-performing loans (NPAs) was limited to 0.36 percent and the provision coverage at 116.70 percent, indicates that the microfinance is in a strong position to reduce potential credit risk.
