First Microfinance Laghubitta Financial Institution Reports 73.63 Percent Net Profit Growth For FY 2082/83

19th July 2026, Kathmandu

First Microfinance Laghubitta Financial Institution has officially released its financial results for the fourth quarter of the fiscal year 2082/83, which aligns with the global period of 2025/26.

First Microfinance Net Profit Growth

The financial statement highlights an outstanding surge in earnings and a significant increase in total profitability. The microfinance institution has capitalized on improved operational strategies to deliver excellent value to its shareholders and strength to its capital base.

The substantial growth points toward strong performance metrics and management stability over the past 12 months. Despite shifting economic realities, the organization managed to navigate institutional credit portfolios safely while achieving growth across all major corporate balance sheet lines.

Massive Expansion in Net Profits and Operating Performance

The core operational income streams developed significantly during the reviewed fiscal year. Both top line interest revenues and bottom line profits experienced direct improvements, leading to enhanced operational security.

The specific performance details regarding the income statement include the following numbers.

• Net profit experienced an incredible year on year increase of 73.63 percent.
• Net earnings reached 190.7 million Nepalese rupees by the final quarter.
• Previous year net profits stood at a much lower value of 109.8 million Nepalese rupees.
• Net interest income achieved a growth rate of 7.46 percent to reach 227.5 million Nepalese rupees.
• Operating profits witnessed a major surge of 73 percent rising up to 272.8 million Nepalese rupees.

These results demonstrate superior core revenue generation capabilities and the success of efficiency enhancements carried out across individual microfinance operational units.

Strong Distributable Profit Boosts Shareholder Dividend Capacity

Along with expanding core revenues, First Microfinance Laghubitta Financial Institution secured a higher level of distributable earnings for investors. This change opens up opportunities for better corporate returns during the next general meeting.

The statistics detailing corporate profits and dividends consist of the following metrics.

Advertisement

• Total distributable profit amounted to 136.2 million Nepalese rupees.
• The calculated shareholder dividend capacity strengthened significantly to 10.13 percent.
• The dividend capacity observed 1 year earlier remained tied at 6.72 percent.

The improvement proves that the financial institution is in a healthy position to value external funding contributions and maintain sound dividend payout traditions in upcoming corporate quarters.

Overview of Capital Reserves Borrowings and Outstanding Loan Portfolios

The microfinance organization continues to hold a very strong capital foundation backed by rising internal financial reserves. The institution moderated its financial activity volumes while enhancing asset controls over the running review term.

The changes to capital accounts and funding allocations show the following trends.

• Paid up capital stood confidently at an overall value of 1.34 billion Nepalese rupees.
• Total corporate reserve funds increased up to 348.4 million Nepalese rupees.
• Previous fiscal year core reserves were registered at 307.4 million Nepalese rupees.
• Total mobilized borrowings reached a level of 3.76 billion Nepalese rupees.
• Disbursed loans and micro credit lending reached a sum of 4.66 billion Nepalese rupees.
• The credit to borrowing ratio settled firmly at 120.15 percent.

For comparison the prior fiscal year recorded 4.91 billion Nepalese rupees in borrowings accompanied by 6.06 billion Nepalese rupees in total loans extended to clients.

Key Financial Indicators and Improving Quality of Microfinance Assets

Asset risk management strategy yielded positive returns as quality measures showed noticeable enhancement across the entire loan landscape. Shareholders benefited directly from rising value per share indicators.

The indicators tracking per share values and asset quality involve the following core factors.

• Earnings per share increased steadily up to 14.18 Nepalese rupees from 8.17 rupees.
• Net worth per share solidified at a positive figure of 137.26 Nepalese rupees.
• The calculated price to earnings ratio stood market wide at 60.65 times.
• The non performing loan ratio successfully declined down to 2.88 percent.
• The non performing loan position in the past fiscal year was marked considerably higher at 3.84 percent.

This strategic reduction in the non performing loan base shows high credit assessment disciplinary standards and better扎 recoveries, solidifying the risk profile of First Microfinance Laghubitta Financial Institution moving forward.

For More: First Microfinance Net Profit Growth