12 August 2024, Kathmandu
Sana Kisan Bikas Laghubitta Financial Sanstha Limited (SKBBL) has announced its unrevised financial results for the period ending the last fiscal year, revealing a significant increase in both net profits and distributable earnings.
Sana Kisan Bikas Laghubitta Reports
The latest financial statement highlights SKBBL’s strong performance compared to the previous year, reflecting robust growth in its operations and profitability.
For the fiscal year ending in June, SKBBL recorded a net profit of NPR 94.96 crore, marking a notable 22.77% increase from the NPR 77.35 crore net profit reported in the same period of the previous financial year. This growth is attributed primarily to a substantial rise in net interest income, which increased by 31.44% during the review period. Additionally, the total operating income surged by 31.86%, contributing to the overall increase in net profit.
However, the report also indicates a rise in non-performing loans, which increased from 0.61% to 2.18% over the review period. Correspondingly, the impairment charge for the microfinance institution has escalated from NPR 17.88 crore to NPR 43.65 crore. Despite these challenges, the financial health of the institution remains strong.
The distributable profit at the end of June stands at NPR 1.72 billion, with distributable earnings per share (EPS) at NPR 45.44. Although distributable profits increased by 2.65% compared to the previous year, the EPS has decreased by NPR 5.14. On a positive note, the earnings per share also experienced an increase, rising by NPR 1.73 to reach NPR 24.95. The net worth per share as of mid-June is NPR 284.81, and the price-to-earnings (P/E) ratio is 34.22 times.
SKBBL’s paid-up capital is NPR 3.81 billion, with reserves totalling NPR 56.66 crore. The microfinance institution has significantly invested in the sector, with NPR 22.98 billion allocated to deposits and NPR 38.12 billion to loans. This strategic investment underlines SKBBL’s commitment to expanding its operations and enhancing financial inclusion.
Overall, SKBBL’s financial results reflect a period of growth and resilience, despite facing increased non-performing loans and higher impairment charges. The institution’s strong profit performance and increased distributable earnings highlight its ongoing success and stability in the microfinance sector.
Sana Kisan Bikas Laghubitta Reports