Karachi: Apna Microfinance Bank Limited has reported substantial financial losses for the fiscal year ending on July 26, 2024. According to the bank’s financial statements, the loss is primarily attributed to increased interest expenses, resulting in a net loss of 3.10 billion rupees.

The bank’s long-term credit rating has been assigned a “BBB-” (Triple B negative), while the short-term rating stands at “A4” (A Four), both with a negative future outlook as determined by The Pakistan Credit Rating Agency Ltd. (PACRA).

During the fiscal year 2024, the bank earned 2.81 billion rupees in mark-up, return, or interest income, marking an increase from 2.53 billion rupees in 2023. However, interest expenses escalated significantly to 3.99 billion rupees from 2.73 billion rupees in the previous year, contributing to a net interest loss of 1.19 billion rupees, a sharp rise from the 204.21 million rupees loss recorded in 2023.

Non-mark-up or non-interest income showed a modest increase, reaching 287.82 million rupees, up from 212.07 million rupees in 2023. Fee and commission income contributed 223.28 million rupees, while other income accounted for 64.54 million rupees.

Despite these gains, the bank faced total non-mark-up or non-interest expenses of 2.20 billion rupees, slightly down from 2.26 billion rupees in 2023. This includes operating expenses of 2.20 billion rupees and other charges totaling 0.91 million rupees.

The loss before credit loss allowance stood at 3.10 billion rupees, compared to 2.26 billion rupees in the previous year. Credit loss allowance and write-offs provided a net positive impact of 35.37 million rupees, a stark reversal from a loss of 1.31 billion rupees in 2023. Consequently, the loss before levy and taxation was 3.06 billion rupees, down from 3.56 billion rupees in the prior fiscal year.

According to information available from the Pakistan Stock Exchange (PSX), the bank operates a widespread branch network across Punjab, Sindh, Baluchistan, KPK, Gilgit Baltistan, Azad Jammu Kashmir, and Islamabad, offering a range of loan products including Apna Agri Loan, Apna Gold, Apna Pension Loan, and others.

No tax provision was reported for the fiscal year, leaving the loss for the year at 3.10 billion rupees, a reduction from the previous year’s loss of 3.59 billion rupees. The results highlight ongoing challenges in managing interest expenses despite a diversified product portfolio and extensive regional coverage.