JBLB
Jeevan Bikas Laghubitta (JBLB) Reports Strong Q4 Profit Growth with Stable Asset Quality
Jeevan Bikas Laghubitta (JBLB) delivered an impressive Q4 FY 2024/25 with Rs. 4.05 billion in revenue and Rs. 740 million in net profit, driving EPS to Rs. 48.20 and maintaining strong profitability. Margins improved, cost of funds declined, and provisioning remained robust. While aggressive lending continues to push the credit-to-deposit ratio higher, the company’s strong capital adequacy, controlled NPLs, and widening interest spreads make JBLB a standout performer in Nepal’s microfinance sector.
Sandeep Chaudhary
2 min read
Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) has released its audited Q4 results for FY 2024/25, showcasing strong revenue growth, improved profitability, and healthy capital adequacy, positioning it as one of the leading microfinance institutions in Nepal.
The company posted total revenue of Rs. 4.05 billion, up 6.43% YoY from Rs. 3.77 billion in Q4 2023/24. Revenue growth remained consistent across quarters, supported by robust lending operations.
Gross profit reached Rs. 2.11 billion, with a margin of 52.27%, significantly higher than last year’s 44.34%, reflecting improved cost control and lending efficiency. Net income surged to Rs. 740.36 million, compared to Rs. 582.20 million last year, translating into a net margin of 18.27%, one of the strongest among microfinance institutions.
For shareholders, EPS (annualized) rose to Rs. 48.20, up from Rs. 43.21 last year, while the PE ratio stood at 31.31, indicating fair valuation relative to earnings growth. Book Value per Share was Rs. 257.63, slightly lower than last year’s Rs. 271.03. JBLB’s stock price, however, continued to reflect high investor confidence, closing at Rs. 1,508.90, above last year’s Rs. 1,465.00. Dividend distribution has not yet been announced for this year (last year: Rs. 14.74 per share).
Financial Sector Indicators
JBLB’s balance sheet and sector indicators highlight its resilience:
Capital Fund to RWA improved to 14.44%, up from 10.81% last year, ensuring strong regulatory compliance.
NPL Ratio was stable at 4.87%, compared to 4.66% a year earlier, reflecting consistent asset quality.
Loan Loss Provision coverage improved to 146.86%, up from 113.64% last year, indicating strong provisioning against defaults.
Cost of Funds decreased to 8.18%, down from 9.41% last year, lowering funding expenses.
Credit-to-Deposit Ratio rose slightly to 124.23%, showing aggressive lending.
Base Rate decreased to 11.51%, compared to 12.61% last year, improving loan affordability.
Net Interest Spread widened to 6.11%, significantly up from 4.35% last year, reflecting improved profitability in lending.
Net Liquid Asset stood at 8.38%, marginally up from 7.83%, providing sufficient liquidity buffer.
Written by
Sandeep Chaudhary