Apna Microfinance Bank Limited Reports Financial Losses Amidst Recovery Efforts

Karachi, Apna Microfinance Bank Limited has presented its Unaudited Condensed Interim Financial Statements for the nine months ended September 30, 2023. The Bank reported a loss after tax of PKR 2,762 million compared to PKR 3,307 million in the corresponding period last year. The loss per share stood at PKR 6.43.

According to information available from the Pakistan Stock Exchange (PSX), the Bank’s net advances after provisions amounted to PKR 6,727 million as of September 30, 2023, showing a decrease from PKR 8,354 million on December 31, 2022. Deposits totaled PKR 20,835 million, marking a decline of 7.80% from the previous December. Investments were reported at PKR 1,335 million.

During this period, the Bank’s net interest earned was PKR 1,894 million, a decrease of 3.3% year-on-year. The net interest expensed saw a significant increase by 61.4% to PKR 1,887 million. The Bank also recorded a provision expense of PKR 1,251 million against its gross loan portfolio, which stands at PKR 11,692 million.

Apna Microfinance Bank continues to face challenges, including a high ratio of non-performing loans, which stood at 40.0% of gross advances. The Bank has been actively pursuing recovery efforts and has successfully recovered PKR 240.414 million in non-performing advances.

In response to the ongoing financial challenges, the Bank’s management has implemented a comprehensive recovery plan, which includes securing additional equity injections from sponsors, increasing the secured advances portfolio, and enhancing digital banking services. The sponsors have committed to injecting further funds, totaling PKR 1 billion, to support the Bank’s operations and recovery.

The Bank acknowledges the continued support and guidance from the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, and the Pakistan Stock Exchange during this critical phase of its operations.