The financial performance of microfinance institutions in Nepal has seen a remarkable turnaround. As of the end of the last fiscal year, 25 microfinance companies have published their financial reports, showing strong improvements compared to the previous year.
Collectively, these 25 institutions earned a total profit of Rs 2.23 billion by the end of Ashad. This is a massive 195.75% rise compared to the previous fiscal year, when the total profit stood at just Rs 754 million.
Several companies that were in loss previously have now moved into profit, while those already in profit have increased their earnings significantly.
Why the improvement?
Nepal Rastra Bank’s loan restructuring facility played a key role in this growth. It helped reduce non-performing loans, increase net interest income, and ultimately boost profits. In addition, new reporting rules allowed institutions to include interest receivable, further improving earnings.
Among all, Global IME Microfinance earned the highest profit of Rs 235.8 million, up by 121.91% from last year.
Other major profit earners include:
| Company | Profit (Rs million) | % Change from Last Year |
|---|---|---|
| Global IME Microfinance | 235.8 | +121.91% |
| Mero Microfinance | 216.0 | – |
| Asha Microfinance | 209.2 | – |
| First Microfinance | 131.7 | -6.34% |
| CYC Nepal Microfinance | 117.4 | – |
| Mahuli Microfinance | 114.5 | – |
| Kalika Microfinance | 108.0 | – |
| RSDC Microfinance | 103.1 | -27.19% |
| Aarambha Chautari Microfinance | 94.4 | +13,780% |
The biggest growth in profit came from Aarambha Chautari Microfinance, which went from earning just Rs 0.6 million in the previous year to Rs 94.4 million this year. Swabhiman Microfinance followed with an 819.08% jump in profit, reaching Rs 72.3 million from just Rs 7.87 million last year.
Several microfinance institutions that had losses last year now report profits: Himalayan Microfinance (Rs 91.7 million), Abhiyan Microfinance (Rs 66 million), NMB Microfinance (Rs 63.8 million), NADEP Microfinance (Rs 53.7 million), Unnati Sahakarya Microfinance (Rs 52.4 million), and Upakar Microfinance (Rs 34.2 million).
With profits soaring, earnings per share (EPS) have also improved for most companies.
| Company | EPS (Rs) | Change from Last Year |
|---|---|---|
| Swabhiman Microfinance | 47.15 | +41.76 |
| CYC Nepal Microfinance | 44.09 | +29.79 |
| Support Microfinance | 41.81 | +24.43 |
| Global IME Microfinance | 38.11 | +20.95 |
| Mithila Microfinance | 37.58 | +13.32 |
| Gurans Microfinance | 34.17 | +16.18 |
| Upakar Microfinance | 32.26 | – |
| Mahuli Microfinance | 30.96 | +20.98 |
| Swastik Microfinance | 28.78 | +13.95 |
| Himalayan Microfinance | 28.70 | – |
These figures reflect the growing strength of Nepal’s microfinance sector, signaling renewed investor confidence and improved operational efficiency.
