Mero Microfinance Returns to Profitability with NPR 8.66 Crore Net Earnings in Q1 FY 2083/84 as NPL Rises to 19.24 Percent

6th November 2026, Kathmandu

Mero Microfinance Bittiya Sanstha Limited has released its un-audited financial report for the first quarter of the fiscal year 2083/84 (ending Ashwin-end 2083).

Mero Microfinance Profitability Returns

The microfinance institution staged a successful turnaround, recording a net profit of NPR 8.66 crore compared to a net loss of NPR 1.21 crore in the corresponding quarter of the previous fiscal year, driven by strong growth in net interest income.

Key Profitability and Income Indicators

Core operating performance improved significantly during the review period, pulling the institution back into profitability.

Advertisement

• Net Profit: NPR 8,66,23,000 (Reversed from a net loss of NPR 1,21,77,000 in Q1 FY 2082/83).
• Net Interest Income: NPR 38,50,70,000 (Increased from NPR 24,26,38,000 in Q1 FY 2082/83).
• Net Interest and Commission Income: NPR 40,85,20,000 (Increased from NPR 26,32,53,000 in Q1 FY 2082/83).
• Total Operating Income: NPR 40,85,20,000.
• Operating Profit: NPR 12,37,47,000.
• Provision for Tax: NPR 3,71,24,000.

Impairment Provisioning and Operating Expenses

Management maintained allocations for loan loss reserves alongside controlled expenditure growth.

• Impairment Charges: NPR 5,82,01,000.
• Net Operating Income: NPR 35,03,18,000 (Post-provisioning).
• Operating Expenses: NPR 22,65,70,000.

Balance Sheet Position and Asset Quality

While overall profitability recovered, asset quality deteriorated with a noticeable surge in non-performing loans.

• Non-Performing Loans (NPL) Ratio: 19.24% (Increased from 14.97% at FY 2082/83 end).
• Total Assets: NPR 15,92,24,00,000 (Decreased from NPR 20,68,67,00,000 at FY 2082/83 end).
• Total Deposits: NPR 4,71,88,00,000 (Increased from NPR 4,63,93,00,000 at FY 2082/83 end).
• Loans and Advances: NPR 15,12,72,00,000 (Slightly down from NPR 15,28,73,00,000 at FY 2082/83 end).
• Borrowings from Banks and Financial Institutions: NPR 7,79,62,00,000.

Per-Share Ratios

Per-share earnings rebounded in tandem with the overall net profit recovery.

• Annualized Earnings Per Share (EPS): NPR 23.31 (Reversed from a negative EPS of NPR 3.43 in Q1 FY 2082/83).

For More: Mero Microfinance Profitability Returns