Himalayan Microfinance Achieves Stellar Turnaround with Robust Q4 Performance and Strategic Growth Trajectory
Himalayan Microfinance Financial Institution Ltd. has shown a strong financial turnaround by posting significant growth in its fourth quarter report of the last fiscal year, overcoming past losses and achieving notable improvements in profitability and operational strength.
ShareSanskar | Shrawan 14, 2082
In a striking display of financial resilience, Himalayan Microfinance Financial Institution Ltd. has reported a significant turnaround in its financial standing as of the fourth quarter of the last fiscal year. According to its unaudited Q4 financial statement published today (Shrawan 14), the company posted a net profit of NPR 91.7 million. This marks a dramatic recovery from the previous year’s corresponding period, when the institution had incurred a loss of over NPR 2 million. The transition from loss to profitability highlights the institution’s improved operational efficiency and financial management.
One of the most encouraging indicators of this turnaround is the surge in net interest income, which jumped by an impressive 58.49%, reaching NPR 353 million. Additionally, the company earned NPR 51.5 million through fees and commissions, contributing to a total operating income of NPR 409.7 million, up from NPR 241.8 million in the same period last fiscal year. These figures not only reflect stronger core banking performance but also indicate growing customer engagement and product diversification.
Moreover, the company’s impairment charges saw a reversal of NPR 3.03 million, a significant shift from the NPR 24.3 million provision made during the same period last year. This change reflects an improved loan recovery environment and more stable asset quality. Retained earnings, which were previously negative by NPR 6.5 million, have now turned positive, amounting to NPR 63.1 million. Furthermore, the reserve fund has grown from NPR 97.1 million to NPR 119.2 million, showing a more fortified financial base.
Himalayan Microfinance has also strengthened its market presence by collecting deposits worth NPR 1.10 billion and issuing loans totaling NPR 4.92 billion. Despite a rise in the non-performing loan (NPL) ratio from 3.49% to 5.33%, the institution maintains robust profitability metrics. Distributable profit reached NPR 63.1 million, translating into an impressive per-share distributable earning of NPR 19.76. Other key indicators include an earnings per share (EPS) of NPR 28.70, a price-to-earnings ratio of 35.38 times, net worth per share of NPR 148.16, total asset value per share of NPR 1778.95, and a liquidity ratio of 13.43 times, illustrating a well-capitalized and liquid institution poised for continued growth.