Forward Microfinance Reports Surging Profits in Q3 ➤

Forward Microfinance Reports Surging Profits in Q3

Net Profit Soars 167% as EPS Jumps to Rs 14.72 Amid Lower Impairments

Forward Microfinance Shines with Stellar Q3 Performance

Forward Microfinance Laghubitta Bittiya Sanstha (FOWAD), a prominent player in Nepal’s microfinance sector, has released its third-quarter report for the current fiscal year, showcasing remarkable financial growth and profitability.

Soaring Net Profit and EPS

According to the report, FOWAD has raised its net profit and earnings per share (EPS) significantly in the review period compared to the corresponding period of the last fiscal year. The company’s net profit soared to Rs 116.5 million, marking a staggering 167.16 percent increase from Rs 43.6 million in the previous year.

While the company logged minimal growth in net interest income, a decrease in impairment charges and expenses contributed to the substantial rise in net profit during the period.

Financial Highlights

During the review period, Forward’s net interest income increased by 6.16 percent, while its net fee and commission income grew by 7.39 percent. Similarly, the company’s total operating income increased by 4.05 percent, and its operating profit surged by an impressive 180.03 percent.

Non-Performing Loans and Impairment Charges

Despite the positive financial performance, Forward’s non-performing loan ratio increased to 8.26 percent from 5.88 percent. However, the company managed to reduce its impairment charges to Rs 421.5 million from Rs 485.5 million in the previous year.

Strong Distributable Profit and EPS Growth

Forward reported a distributable profit of Rs 116.5 million for the quarter. Consequently, its EPS increased to Rs 14.72, up from the previous Rs 9.21, reflecting the company’s strong profitability.

Key Financial Metrics

The company, with a paid-up capital of Rs 1.05 billion, boasts a reserve fund of Rs 1.78 billion. During the review period, Forward collected and borrowed deposits totaling Rs 8.78 billion and extended loans worth Rs 19.82 billion. Furthermore, the company reported a P/E ratio of 76 times and a net worth per share of Rs 269.34.

As Nepal’s microfinance sector continues to evolve, Forward’s impressive third-quarter performance underscores its resilience and commitment to serving the financial needs of its customers while delivering strong returns to its stakeholders.