Global IME Laghubitta Bittiya Sanstha Reveals Doubled Net Profit
10th August 2025, Kathmandu
Global IME Laghubitta Bittiya Sanstha Limited has released its financial results for the last fiscal year, showcasing an exceptional performance that has more than doubled its net profit. The company’s audited financial statements reveal a remarkable 121.91% increase in net profit, a testament to its strong operational efficiency and improved asset quality.
Global IME Laghubitta Profits
This substantial growth places the microfinance institution in a robust financial position and signals a positive outlook for its investors and the broader microfinance sector in Nepal.
The company’s performance is particularly noteworthy given the competitive landscape of the microfinance industry. This detailed analysis will explore the key financial metrics, providing a comprehensive overview of how Global IME Laghubitta achieved such impressive results and what it means for the company’s future.
Key Financial Highlights: Profits, Income, and EPS
According to the report, Global IME Laghubitta earned a net profit of NPR 235.8 million in the fiscal year ended mid-July 2025. This figure is a significant leap from the NPR 106.2 million recorded in the previous year. This sharp rise in profitability is a direct result of strategic growth in core income, disciplined cost management, and a marked reduction in non-performing loans.
The microfinance institution’s financial success is built on a strong foundation of growing revenue. The company’s net interest income surged from NPR 631.4 million to NPR 759.7 million, reflecting increased lending activities and a healthy return on its loan portfolio. Similarly, total operating income also grew from NPR 704.4 million to NPR 844.9 million, underscoring the company’s ability to generate revenue from diverse operational activities.
This strong performance at the top line translated directly to the bottom line, with the company’s operating profit climbing by 83.85% to NPR 337.9 million. This growth, in turn, led to a more than doubling of earnings per share (EPS), which jumped from NPR 17.16 to a notable NPR 38.11. This impressive EPS figure indicates that the company is generating higher returns for each share, making it an attractive prospect for shareholders and potential investors.
Strengthening Asset Quality and Financial Position
A key factor in the company’s strong financial performance is its improved asset quality. Global IME Laghubitta managed to reduce its non-performing loan (NPL) ratio from 4.07% to 3.62%. This reduction is a clear sign of effective credit risk management and robust loan recovery mechanisms. A lower NPL ratio reduces the financial risk for the company and builds confidence in its lending practices.
The company’s financial foundation remains solid, with a paid-up capital of NPR 618.9 million and a reserve fund that has grown to NPR 713.9 million. These strong reserves provide a crucial cushion against future risks and create ample room for sustainable expansion. The robust reserve base also positions the company for strategic investments and continued growth in its operations. As of the end of the fiscal year, the company’s net worth per share stood at NPR 215.35, a testament to its sound financial health.
Dividend Capacity and Market Expansion
One of the most exciting aspects of the financial report for shareholders is the significant increase in the company’s distributable profit, or dividend-paying capacity. This figure reached NPR 171.7 million, suggesting that the company is in an excellent position to reward shareholders with a strong dividend announcement. This substantial dividend capacity highlights the company’s commitment to delivering value to its stakeholders and its financial strength.
In terms of market presence, Global IME Laghubitta demonstrated a strong expansion in its core activities. The company disbursed loans worth NPR 9.83 billion and collected deposits amounting to NPR 3.61 billion. This growth in both credit and deposits underscores the institution’s expanding customer base and its deepening impact in the microfinance sector.
A Beacon of Financial Inclusion
Microfinance institutions like Global IME Laghubitta play a crucial role in Nepal’s economic development by providing essential financial services to underserved and rural populations. Their growth not only benefits shareholders but also contributes to broader economic well-being by fostering entrepreneurship, improving livelihoods, and promoting financial inclusion.
The impressive financial results for the past fiscal year paint a very positive picture for Global IME Laghubitta’s future. With higher income, lower bad loans, and a solid financial base, the company is well-poised to further strengthen its position as a leader in the microfinance sector. As the company continues its impressive trajectory, all eyes will be on its upcoming dividend declaration and strategic plans for future expansion.
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