RSDC Microfinance's Net Profit Jumps 73.5% Due to Reversed Impairment Charge

RSDC Microfinance Financial Institution Limited has published its unaudited financial statement for the second quarter of the current fiscal year. According to the statement, the microfinance's net profit has increased compared to the same period of the previous fiscal year.

In the first six months of the current fiscal year, the microfinance earned a net profit of NPR 76.6 million, marking a 73.54% increase from the same period last year, when it recorded a profit of NPR 44.1 million.

Despite a decrease in interest income, the reversal of impairment charges led to an increase in the microfinance’s net profit. During the review period, interest income dropped by 4.01%, while fee and commission income grew by 21%. Additionally, the total operating income of the microfinance fell by 1.72%, but operating profit surged by 69.48%.

As of the second quarter, the distributable profit of the microfinance stood at NPR 66.8 million, with earnings per share at NPR 12.93. The earnings per share also grew during the period, reaching NPR 14.83, an increase of NPR 5.47 compared to the same period last year. As of mid-January, the microfinance’s price-to-earnings ratio stood at 43.15 times, with a net worth per share of NPR 125.15.

The microfinance institution, with a paid-up capital of NPR 1.034 billion, has accumulated NPR 26.23 million in reserve funds. In the first six months, it disbursed NPR 5.31 billion in loans from a loan portfolio of NPR 5.01 billion.