Mithila Laghubitta Reports Q4 Financial Results with Decline in Net Profit and EPS
11th August 2026, Kathmandu
Mithila Laghubitta Bittiya Sanstha Limited has published its unaudited financial statements for the fourth quarter of the last fiscal year.
Mithila Laghubitta Q4 Financial Results
The financial report indicates a contraction in bottom line profitability, with both net profit and earnings per share experiencing a noticeable decline compared to the corresponding period of the previous fiscal year.
Despite the drop in net profit, the microfinance institution demonstrated expansion across key operational parameters, including total operating income, net interest earnings, deposit collection, and overall credit disbursement.
Decline in Net Profit and Earnings Per Share
According to the fourth quarter report, Mithila Laghubitta generated a net profit of 51.357 million Nepali Rupees for the review period.
This represents a reduction of 28.33 percent compared to the net profit of 71.657 million Nepali Rupees posted in the same quarter of the previous fiscal year.
Reflecting the decline in net profit, the earnings per share of the institution fell from 32.00 Nepali Rupees to 20.07 Nepali Rupees by the end of the fiscal year.
Growth in Operating Income and Distributable Earnings
While bottom line profits decreased, the core business activities of the institution generated positive top line growth.
Total operating income increased by 19.18 percent, reaching 295.061 million Nepali Rupees compared to 247.569 million Nepali Rupees recorded in the previous fiscal year.
Net interest income expanded from 207.366 million Nepali Rupees to 245.647 million Nepali Rupees during the review period.
Furthermore, Mithila Laghubitta reported a distributable profit of 32.739 million Nepali Rupees for the fiscal year.
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Expansion in Lending Portfolio Deposits and Capital Base
The microfinance company expanded its balance sheet through increased lending operations and higher deposit mobilization.
Total loans and advances rose by 8.92 percent, growing to 3.1407 billion Nepali Rupees compared to figures from the preceding year.
Deposit collection increased from 1.1885 billion Nepali Rupees to 1.3034 billion Nepali Rupees over the twelve month period.
The paid up capital of the financial institution expanded by 14.25 percent to reach 255.843 million Nepali Rupees, while its reserve fund stood at 22.989 million Nepali Rupees.
Financial Pressure Indicators Asset Quality and Funding Costs
Despite growth in business volume, certain financial indicators reflected operational pressure:
Non Performing Loan Ratio: The non performing loan ratio experienced a slight uptick, rising from 9.80 percent to 9.89 percent during the review period.
Cost of Funds: The cost of funds increased from 6.24 percent to 7.11 percent, impacting profit margins.
Per Share Valuation and Liquidity Position
At the end of the fourth quarter, Mithila Laghubitta reported a net worth per share of 167.93 Nepali Rupees.
The microfinance institution maintained a liquidity ratio of 12.98 percent, ensuring operational readiness to meet financial obligations.
For More: Mithila Laghubitta Q4 Financial Results
