6th February 2025, Kathmandu
NMB Microfinance has reported a significant financial recovery for the second quarter of the current fiscal year. The company posted a profit of NPR 1.18 million, a dramatic improvement compared to last year’s loss of NPR 6.75 million during the same period.
NMB Microfinance’s Q2 Growth
The turnaround can be attributed to a strong rise in the company’s net interest income and operational profit. In the review period, NMB Microfinance earned NPR 17.52 million from interest income, showing a 62.81% increase from the previous year’s NPR 10.76 million. This boost reflects the company’s improved financial performance in its core operations.
In addition, the company’s operational profit has also seen significant improvement. Last year, NMB Microfinance faced an operating loss of NPR 6.76 million, but this year, it reported a positive operating profit of NPR 1.68 million, signaling better management of expenses and more efficient operations.
Stronger Capital and Improved Earnings Per Share
NMB Microfinance’s paid-up capital has grown to NPR 72.14 million, with its reserve fund standing at NPR 22.64 million. This capital growth indicates the company’s increasing financial stability and capacity for expansion in the microfinance sector.
The company’s earnings per share (EPS) also saw a remarkable recovery. The current EPS stands at NPR 6.55, a significant turnaround from last year’s negative EPS of NPR -18.73. Furthermore, NMB Microfinance’s net worth per share has increased to NPR 135.81, which shows enhanced shareholder value.
A Positive Outlook for the Future
With improved performance in the first half of the fiscal year, NMB Microfinance looks poised for continued growth. The increase in interest income and profitability, along with its strengthening capital position, suggests that the company is well-prepared for further expansion.
NMB Microfinance’s successful recovery highlights its resilience and ability to improve financial outcomes despite challenges. As the company maintains its focus on enhancing revenue streams and reducing operational losses, it is likely to continue its positive momentum throughout the rest of the fiscal year.
In conclusion, NMB Microfinance’s performance for the second quarter reflects effective management and a solid path toward long-term stability and growth in the microfinance sector. With continued efforts to strengthen its core operations, NMB Microfinance is expected to perform well in the upcoming quarters.
For more: NMB Microfinance’s Q2 Growth
