First Microfinance’s net profit fell by 6.34% to Rs 13.17 crore in the fourth quarter of FY 2081, mainly due to reduced interest and commission income.
First Microfinance Laghubitta Financial Institution Limited has released its unaudited financial statements up to the fourth quarter of the previous fiscal year. According to the report, the company’s net profit declined by 6.34 percent, amounting to Rs 13.17 crore. In the same period last year, the net profit was Rs 14.06 crore.
The main reasons for the decline in profit are reductions in net interest income as well as fee and commission income.
Up to the fourth quarter, First Microfinance’s net interest income dropped by 31.81 percent to Rs 21.18 crore, while operating income decreased by 34.11 percent to Rs 21.69 crore. Meanwhile, impairment charges increased from a negative Rs 4.87 crore in the previous year to Rs 4.58 crore this year.
The company’s non-performing loan (NPL) ratio rose by 0.68 percentage points to 3.84 percent.
During the review period, First Microfinance mobilized loans amounting to Rs 490.96 crore and disbursed loans worth Rs 609.07 crore.
With a paid-up capital of Rs 134.48 crore, the company’s distributable profit stands at Rs 10.78 crore, and its reserve fund totals Rs 42.02 crore. Earnings per share (EPS) declined by Rs 1.60 to Rs 9.79, while net worth per share is reported at Rs 131.25.
First Microfinance’s distributable earnings per share are Rs 8.02, and the price-to-earnings (P/E) ratio is 81.58 times. The institution’s base lending rate remains at 7.58 percent.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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