One of Pakistan’s top microfinance institutions, U Microfinance Bank, has reported remarkable financial results for 2022. The bank reported a profit after tax of Rs. 2.25 billion, a stunning 102.5% YoY increase over the profit of Rs. 1.11 billion the previous year.
The bank maintained its upward trend in profitability in 2022, posting a pre-tax profit of Rs. 2.45 billion, a rise of 81% year over year. The implementation of IFRS-9, which enabled the creation of a sizeable reserve of Rs. 3.7 billion, was credited by U Microfinance Bank as the reason for its success.
In addition, the bank’s advances (net of provisions) increased significantly from Rs. 34.37 billion in 2021 to Rs. 59.28 billion in CY22, while its investments increased dramatically from Rs. 46.56 billion to Rs. 137.33 billion in CY22. Deposits and other accounts increased to Rs. 92.2 billion, up from Rs. 55 billion recorded in CY21, while the bank’s total assets increased from Rs. 104.57 billion to Rs. 221.29 billion.
Earnings per share for U Microfinance Bank were recorded as Rs. 6.10 in 2022 as opposed to Rs. 3.60 the year before. In the meantime, the company’s total liabilities climbed from Rs. 97.08 billion in CY21 to Rs. 214.19 billion in CY22.
The U Microfinance Bank’s impressive development and financial performance underline the bank’s dedication to providing top-notch services to its clients while guaranteeing sustainable expansion. U Microfinance Bank is well-positioned to continue advancing financial inclusion in Pakistan’s microfinance industry and providing value to its shareholders thanks to these remarkable financial performance.
