ABHI Microfinance Bank Limited closed 2025 with a profit after tax of Rs. 1.019 billion, the highest ever in the bank’s history.
Compared to a loss of Rs. 1.754 billion in 2024, this marks a sharp recovery in the Bank’s financial performance, leading to a Rs. 2.773 billion profitability swing in just one year after many years of losses. It is noteworthy that the bank was last profitable in 2020.
The improvement came on the back of stronger balance sheet growth, higher income generation, improved recoveries, tighter credit monitoring, and better cost discipline during the year.
The Bank’s total assets increased to Rs. 77.066 billion, compared to Rs. 40.353 billion in 2024, primarily due to a significant expansion in advances, which nearly doubled to Rs. 37.556 billion from Rs. 18.387 billion a year earlier, translating into an increase of 104.25 percent.
The increase in the loan book was fueled by a healthy rise in deposits, which increased to Rs. 69.088 billion from Rs. 36.226 billion in 2024, representing an increase of 90.71 percent. This helped strengthen the Bank’s funding base and supported liquidity during a year in which the broader microfinance sector continued to operate in a challenging credit and inflationary environment.
The Bank’s revenue profile strengthened significantly in 2025, with total revenue rising to Rs. 14.25 billion from Rs. 9.461 billion in 2024, reflecting a robust increase of 50.66 percent. Asset quality remained a key area of focus.
The Bank also reported a significant reduction in credit losses, with the NPL ratio declining significantly to 0.68 percent in 2025. On the capital side, sponsor support, capital injections, and organic profitability significantly helped improve the Bank’s equity position.
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