Financial Progress of Gurans Microfinance Financial Institution (GLBSL)

Gurans Microfinance Financial Institution Limited (GLBSL) has published its unaudited financial statement for the fourth quarter of the fiscal year 2081. According to this report, the microfinance institution has shown a significant increase in net profit.

By the end of the fiscal year, the microfinance institution had earned a net profit of NPR 25.9 million, which is an increase of 1,449.11% compared to the same period of the previous fiscal year. Last year, the microfinance institution had earned only NPR 1.6 million in net profit.

Key Points of the Financial Statement:

• Net Interest Income: The net interest income of the microfinance institution has increased by 47.94%.

• Other Operating Income: Other operating income has increased by 102.53%.

• Total Operating Income: Total operating income has increased by 49.74%.

• Non-Performing Loans: Non-performing loans have decreased from 6.36% to 2.46%.

• Operating Profit: Operating profit has increased by 1,418.24%.

• Earnings Per Share (EPS): Earnings per share have increased from NPR 2.39 to NPR 25.60.

• Net Worth Per Share: Net worth per share has reached NPR 146.52.

• Price-Earnings Ratio (P/E Ratio): The price-earnings ratio stands at 71.12 times.

The microfinance institution has a paid-up capital of NPR 101.4 million and a reserve fund of NPR 47.1 million. The institution has disbursed loans amounting to NPR 1.68 billion from NPR 1.18 billion in borrowings and NPR 349.4 million in deposits.

Explanation: Gurans Microfinance Financial Institution has made significant financial progress this fiscal year. The notable increase in net interest income, substantial rise in other operating income, and the reduction in non-performing loans have all contributed to the substantial increase in operating profit. Consequently, there has been a significant rise in the net profit and earnings per share of the institution.

This kind of financial progress strengthens the sustainable economic health and future prospects of the microfinance institution. Financial institutions that can improve the quality of their loans and increase operating income are also capable of enhancing long-term profitability and increasing dividends for shareholders.