Matribhumi Laghubitta Reports Q2 FY 2082/83 Profit
12th February 2026, Kathmandu
Matribhumi Laghubitta Bittiya Sanstha Limited has officially released its unaudited financial statements for the second quarter of the fiscal year 2082/83. As a Gh class licensed microfinance institution, the company has reported a net profit of 35.34 million NPR for the period ending Poush 2082. This financial result highlights the institution resilience in a volatile microfinance environment, characterized by strong deposit growth and disciplined loan management.
Matribhumi Laghubitta Reports Q2
Despite the ongoing economic pressures in Nepal rural sectors, Matribhumi Laghubitta has managed to maintain a positive bottom line, further strengthening its equity base and shareholder value.
Financial Performance and Profitability Analysis
The second quarter results show a steady accumulation of income from core lending activities. The institution ability to manage its interest margins effectively has been a key driver of its current profitability.
Net Interest Income: For the first half of the year, the company earned a substantial 653.70 million NPR in net interest income. For the second quarter alone, this figure stood at 154.17 million NPR.
Operating Profit: The operating profit for the quarter reached 79.41 million NPR, contributing to a year to date operating profit of 184.40 million NPR.
Net Profit: The institution cumulative net profit for the fiscal year has reached 55.05 million NPR, with 35.34 million NPR being generated in the second quarter alone.
Distributable Profit: The company has set aside 32.62 million NPR in regulatory reserves, ensuring compliance with Nepal Rastra Bank directives while preparing for future dividend distributions.
Balance Sheet Growth and Asset Quality
Matribhumi Laghubitta has seen a notable expansion in its balance sheet size, driven by increased trust from its member base and steady loan disbursements.
Total Assets: The total assets of the institution grew to 12.83 billion NPR as of Poush 2082, up from 11.97 billion NPR at the end of the previous fiscal year.
Loans and Advances: The company has deployed 10.46 billion NPR in loans and advances to its customers, focusing on small scale entrepreneurship and rural development.
Deposits from Customers: One of the most positive indicators in the report is the growth in deposits, which reached 6.76 billion NPR. This represents an increase of approximately 1.68 billion NPR during the quarter, signaling strong liquidity mobilization.
Equity and Reserves: The total equity, including share capital and reserves, has strengthened to 4.51 billion NPR.
Key Financial Ratios and Regulatory Compliance
The institution maintains a healthy set of financial ratios that meet the stringent requirements of the central bank.
Capital Adequacy: The Capital Fund to Risk Weighted Assets (CAR) stood at 10.48 percent on a year to date basis, providing a solid buffer against potential credit losses.
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Non Performing Loan (NPL) Ratio: The NPL ratio was recorded at 8.07 percent. While this reflects the broader challenges in the microfinance sector, the company has mitigated this risk by maintaining a Total Loan Loss Provision to NPL ratio of 102.58 percent.
Interest Rate Spread: The institution maintained an interest rate spread of 8.69 percent on a year to date basis, which narrowed to 6.31 percent during the second quarter.
Cost of Funds: The cost of funds remained relatively high at 13.70 percent annually, reflecting the competitive environment for deposit mobilization.
Per Share Metrics and Investor Information
For investors tracking the company on the secondary market, the per share metrics provide a clear picture of its valuation.
Annualized Basic Earnings Per Share (EPS): 1,031 NPR
Diluted Earnings Per Share: 975 NPR
Net Worth per Share: The institution continues to build its internal value, which is reflected in its growing equity and reserves.
Operational Challenges and Strategic Outlook
Management has acknowledged several external hurdles, including a slower demand for new loans, a general economic slowdown, and localized opposition to microfinance operations. To counter these, the institution is focusing on:
Improving Loan Recovery: Enhancing field level monitoring to reduce the NPL ratio and recover overdue interest.
Technology Integration: Implementing member friendly digital services to increase operational efficiency and reduce the cost of transactions.
Liquidity Management: Prioritizing deposit mobilization to reduce reliance on expensive external borrowings.
Financial Inclusion: Continuing to expand reach into underserved rural areas to fulfill its social mandate of financial empowerment.
Conclusion
The Matribhumi Laghubitta Q2 Report for FY 2082/83 confirms that the institution is on a stable financial path. With a net profit of 35.34 million NPR and a significant increase in customer deposits, the company has demonstrated its ability to grow even during a period of sectoral consolidation. By maintaining a high loan loss provision and focusing on recovery, Matribhumi Laghubitta is well positioned to navigate the remainder of the fiscal year while delivering value to its members and shareholders.
For More: Matribhumi Laghubitta Reports Q2
