Kathmandu: Support Laghubitta Bittiya Sanstha delivered a strong earnings performance in the first nine months of Nepal’s fiscal year 2025/26 (Nepali FY 2082/83), posting a net profit of Rs 31.8 million. That is more than double the Rs 15.5 million it earned during the same period last year.
With paid-up capital of Rs 122.4 million, the microfinance institution also saw a sharp rise in earnings per share, which climbed from Rs 25.32 a year earlier to Rs 51.87. The improvement was largely driven by a drop in funding costs as interest rates in the banking system declined, easing the institution’s cost of funds.
As a result, net interest income jumped significantly, rising from Rs 51.6 million to Rs 89.4 million. However, unlike last year when the institution benefited from a small provision write-back of 0.98 million rupees it set aside 1.67 million rupees this year as provisions for potential loan losses, reflecting a more cautious credit stance.
During the review period, the institution generated Rs 14.3 million in distributable profit, while accumulated profit stood at Rs 44 million. Its reserve fund totalled Rs 64.9 million. Net worth per share reached Rs 189.01, and the price-to-earnings ratio was reported at 34.37.
Loan expansion remained steady. The loan portfolio grew from Rs 1.91 billion at the end of the last fiscal year to Rs 2.14 billion by mid-January. Deposits increased from Rs 461.6 million to Rs 538.6 million over the same period, while borrowings from banks and financial institutions edged up from Rs 1.34 billion to Rs 1.39 billion.
Key financial indicators show a capital adequacy ratio of 9.18 percent, a non-performing loan ratio of 3.17 percent, and a cost of funds at 6.48 percent. Overall, the results indicate a microfinance lender benefiting from a more favourable interest rate environment while continuing to expand its lending base.
Comment Here