Banking Khabar / NIC Asia Microfinance Financial Institution Limited has reported a significant rise in net profit by the end of the third quarter of the current fiscal year.
The company posted a net profit of Rs. 106.9 million, marking a massive increase of 8,133.78 percent compared to Rs. 1.29 million during the same period last fiscal year.
Net interest income also grew by 72.20 percent, reaching Rs. 854 million, up from Rs. 495.9 million a year earlier.
Similarly, the company’s net fee and commission income turned positive at Rs. 4.03 million, recovering from a negative Rs. 683.3 million in the previous year.
During the review period, NIC Asia Microfinance recorded net operating income of Rs. 823.9 million and an operating profit of Rs. 159 million. However, retained earnings remain negative at Rs. 323.7 million, which has also pushed distributable profit into the negative by the same amount. Despite this, the company maintains positive reserves totaling Rs. 799.4 million.
In terms of business expansion, the institution collected deposits worth Rs. 2.84 billion and disbursed loans amounting to Rs. 19.72 billion.
However, asset quality has deteriorated, with the non-performing loan (NPL) ratio rising from 13.55 percent to 16.59 percent.
Financial indicators show earnings per share (EPS) at Rs. 8.20, net worth per share at Rs. 127.35, total assets per share at Rs. 1,343.73, a price-to-earnings ratio of 74.19 times, and a liquidity ratio of 19.04 percent.
