First Microfinance Laghubitta Financial Institution Ltd. has published its unaudited financial results for the first half of the current fiscal year. The company reported a net profit of NPR 7.04 crore, marking a 34.64% increase compared to NPR 5.23 crore in the same period last year. The profit growth was primarily driven by the reversal of impairment charges, despite a decline in net interest income.
During the first half of the fiscal year, the company’s net interest income fell by 12.54% to NPR 9.74 crore, while total operating income decreased by 13.78% to NPR 9.76 crore. Operating profit, however, rose by 34.64% to NPR 10.05 crore. Fee and commission income for the review period was negative at NPR 7.4 lakh.
The institution’s asset quality slightly declined, with the non-performing loan (NPL) ratio increasing by 0.08 percentage points to 4.52%, compared to 4.44% in the same period last year. In terms of lending and deposits, First Microfinance collected NPR 4.075 arba (407.50 crore) in deposits and disbursed NPR 4.6756 arba (467.56 crore) in loans during the review period.
As of the end of the second quarter, the company’s distributable profit stood at NPR 4.75 crore, with earnings per share (EPS) of NPR 7.07. The paid-up capital of the institution is NPR 1.344871 arba (134.48 crore), and the reserve fund has accumulated NPR 38.07 crore. EPS increased by NPR 2.69 to NPR 10.47 per share, and the net worth per share reached NPR 128.31. The price-to-earnings (P/E) ratio of the company stood at 76.51 times at the end of Poush.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
