Atmanirbhar Microfinance Publishes Fourth Quarter Financial Report, Significant Decline in Net Profit
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NEPSE trading
Atmanirbhar Microfinance Financial Institution Limited (ANLB) has published its unaudited financial report for the fourth quarter of the last fiscal year. According to the report, the microfinance company's net profit has decreased by 71.26% compared to the same period in the previous fiscal year.
Significant Decline in Net Profit: By the end of the last fiscal year, the microfinance company earned a net profit of NPR 13.9 million, down from NPR 48.6 million in the same period of the previous fiscal year. This decline has weakened the company's financial position.
Interest Income and Non-Performing Loans: Although the company's net interest income increased by 3.57%, its non-performing loans (NPL) significantly rose from 7.58% to 13.22%. This rise in NPL has negatively impacted the company's profitability.
Operating Profit: Despite a 3.58% increase in total operating income, the company had to provision NPR 176.4 million for potential risks, leading to a negative operating profit of NPR 86.1 million.
Recovery of Bad Loans: By the end of the fourth quarter, the microfinance company recovered NPR 108.3 million in bad loans, which helped the company report a profit.
Decline in Earnings Per Share: The company’s earnings per share (EPS) fell by NPR 57.60, down to NPR 20.37.
Price-to-Earnings Ratio: As of the end of Ashad, the company's price-to-earnings ratio stood at NPR 133.77, indicating weak earnings relative to its share price.
Financial Situation: The microfinance company has a paid-up capital of NPR 68.5 million and a reserve fund of NPR 198.7 million. It has provided loans worth NPR 1.4786 billion through borrowings of NPR 148.1 million and deposits of NPR 861.5 million.
This financial report highlights the challenging financial situation faced by Atmanirbhar Microfinance, particularly due to the increase in non-performing loans and the significant decline in net profit. The company may need to take further corrective actions to maintain financial stability.
