First Microfinance Net Profit Reaches NPR 17.77 Million as Non-Performing Loans Drop Below 2 Percent
29th October 2026, Kathmandu
First Microfinance Laghubitta Bittiya Sanstha Limited increased its net profit and demonstrated improved credit risk management by reducing its non-performing loan (NPL) ratio during the first quarter of the current fiscal year 2083/84.
First Microfinance Net Profit
Quarterly Profitability and Operational Metrics
According to the quarterly financial report published by the microfinance institution, net operating income and operating profit both recorded positive growth.
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- Net Profit Growth: The institution earned a net profit of NPR 17.78 million through the end of Ashoj, up from NPR 16.84 million reported in the corresponding period of the previous fiscal year.
- Distributable Profit Surge: Distributable profit generated during the current quarter rose by 65.69 percent to reach NPR 12.98 million. Adjusting for retained earnings and proposed cash dividends, total distributable profit stands at NPR 19.01 million.
- Operating Income and Profit: Net operating income increased by 11.17 percent to NPR 40.74 million, while operating profit rose from NPR 24.06 million in the previous year to NPR 25.40 million.
Asset Quality and Financial Indicators
The institution improved key financial metrics through proactive NPL management and loan-loss provision write-backs.
- Non-Performing Loan (NPL) Reduction: The gross NPL ratio decreased significantly from 4.24 percent in the previous year’s first quarter to 1.97 percent, marking a 2.27 percentage point decline.
- Net NPL and Coverage Ratio: The net NPL ratio dropped from 0.24 percent to zero percent, while the loan-loss provision coverage ratio increased from 117.25 percent to 150.10 percent.
- Provision Write-Back: The institution recorded a write-back of NPR 6.74 million from loan-loss provisions, compared to a provision expenditure of NPR 7.53 million allocated in the same quarter last year.
- Interest Spread Contraction: The net interest spread narrowed from 1.57 percent to 1.08 percent.
- Key Financial Ratios: Annualized earnings per share (EPS) stands at NPR 5.29, with a net worth per share of NPR 139.49. Total paid-up capital remains at NPR 1.34 billion, with total equity reaching NPR 1.88 billion.
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