Karachi: Apna Microfinance Bank Limited faced a substantial financial setback in its first-quarter performance of 2024, grappling with increased expenses and lower earnings. According to information available from the Pakistan Stock Exchange (PSX), the un-audited financial results show a stark contrast to the previous year’s figures.
The bank reported a significant net mark-up/interest loss of 280.33 million rupees for the quarter ended March 31, 2024, after accounting for provisions against non-performing loans which tallied up to 41.03 million rupees. This is a dramatic decline from the net income of 123.77 million rupees recorded during the same period last year.
In terms of non-mark-up/non-interest income, Apna Microfinance Bank garnered 56.47 million rupees, primarily from fees, commission, and brokerage, along with other incomes totaling nearly 15.00 million rupees. However, this was not sufficient to offset the non-mark-up/non-interest expenses that surged to 544.47 million rupees, predominantly under administrative expenses.
The overall loss before taxation escalated to 768.34 million rupees, a sharp increase from the profit of 8.03 million rupees reported in the March quarter of 2023. The bank’s taxation expenses for the current period were minimal at 9.39 million rupees, reflecting no adjustments for prior years or deferred taxes.
As the financial woes compounded, Apna Microfinance Bank’s unappropriated loss carried forward ballooned to a staggering 11.75 billion rupees. The earnings per share also plunged into the negative, marking a significant downturn from the previous year.
This financial turbulence underscores the challenges faced by Apna Microfinance Bank as it navigates through economic uncertainties and heightened operational costs. The bank has not proposed any cash dividends, maintaining a cautious approach towards its capital reserve strategies amid ongoing financial pressures.