Sawabalamban Laghubitta profit growth doubles
5th February 2026, Kathmandu
Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL) has reported a remarkable surge in its financial performance for the second quarter of the fiscal year 2082 2083. According to the unaudited financial statements for the period ending Poush 2082, the institution recorded a net profit of 172.6 million rupees. This figure represents a significant growth of 113.86 percent compared to the 80.7 million rupees earned in the corresponding period of the previous fiscal year. This doubling of profit highlights the company’s successful navigation through a challenging microfinance landscape, driven by robust interest income and improved operational scaling.
Swabalamban Laghubitta profit growth
The results indicate that the institution is effectively leveraging its expanded capital base and branch network to drive higher returns for its stakeholders.
Growth in Net Interest Income and Operating Efficiency
The primary engine behind the Swabalamban Laghubitta profit growth has been its core lending operations. The company saw a healthy expansion in its interest related revenues, reflecting steady demand for microcredit in rural and semi urban Nepal.
Key income highlights for the review period include:
Net Interest Income: The company earned 950.7 million rupees, marking an 18.83 percent increase from the 800.1 million rupees recorded last year.
Total Operating Income: Revenue from operations climbed to 1.12 billion rupees, a rise of 18.92 percent.
Operating Profit: The institution’s operating profit witnessed a sharp jump of 114 percent, reaching 246.5 million rupees, up from 115.2 million rupees.
This surge in operating profit suggests that Swabalamban Laghubitta has been successful in controlling its administrative and personnel expenses while significantly increasing its top line revenue.
Financial Indicators and Shareholder Metrics
The strong bottom line performance has had a direct positive impact on the company’s key financial ratios. Shareholders have seen a substantial rise in earnings metrics during the first half of the fiscal year 2082 2083.
Earnings Per Share (EPS): The annualized EPS has surged to 19.78 rupees, compared to 4.87 rupees in the same period last year.
Net Worth Per Share: The company’s net worth stands at 218.53 rupees, indicating a solid internal capital position.
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Price to Earnings (PE) Ratio: The stock currently trades at a PE ratio of 39.48 times, reflecting high investor expectations and a premium valuation in the market.
Asset Quality and Risk Management Challenges
Despite the impressive Swabalamban Laghubitta profit growth, the report sheds light on a significant increase in non performing loans (NPL). The NPL ratio has risen from 8.28 percent to 11.77 percent during the review period. This spike in delinquent loans is a common trend across the microfinance sector in 2026, as borrowers face continued economic pressure.
Managing this rising credit risk will be the most critical task for the management team, led by CEO Narendra Singh Bista, in the coming quarters. The institution has maintained a high loan loss provision to buffer against these risks, but a sustained increase in NPLs could eventually weigh on future profitability.
Balance Sheet Strength and Outreach
Swabalamban Laghubitta continues to maintain one of the strongest balance sheets in the microfinance industry.
Paid up Capital: 1.75 billion rupees.
Reserves and Surplus: Total reserves have exceeded 2.07 billion rupees.
Deposit Mobilization: The company has successfully mobilized nearly 17 billion rupees in deposits.
Loan Portfolio: Total loans and advances to members have reached approximately 23 billion rupees.
The institution’s total asset base has now crossed the 25.23 billion rupee mark, reflecting its massive scale and reach across Nepal.
Conclusion
The second quarter results for 2082 2083 confirm that Swabalamban Laghubitta is on a high growth path, with net profit more than doubling within a year. While the 113.86 percent profit growth and the rise in EPS to 19.78 rupees are highly positive signs for investors, the rising NPL ratio of 11.77 percent remains a point of caution. If the company can effectively manage its asset quality while maintaining its current income momentum, it is well positioned to remain a dominant force in Nepal’s microfinance sector.
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