Islamabad May 30 2024: Apna Microfinance Bank’s equity has reached a negative PKR 6,641 million due to continuous losses, as the Non-performing Loans ratio increased to 41%, according to a filing to the exchange.
Apna Microfinance Bank reported a loss after tax amounting to PKR 3,594 million in 2023, an improvement from the loss of PKR 4,489 million in 2022.
The equity (net of losses) of the bank stood at a negative PKR 6,641 million, with a loss per share recorded at PKR 8.38, compared to PKR 10.47 the previous year.
Investments, net of provisions, decreased to PKR 1,254 million from PKR 2,466 million as of December 31, 2022. A significant contributor to this loss was a provision charge of PKR 1,312 million, primarily for a portfolio classified by the State Bank of Pakistan (SBP). Consequently, advances, net of provisions, stood at PKR 6,591 million as of December 31, 2023, down from PKR 8,354 million, reflecting a 21% decrease. The bank’s Advances to Deposit Ratio (ADR) at year-end 2023 was 51.7%, compared to 53.4% in 2022.
The bank’s gross Non-Performing Loans (NPL) ratio increased to 41.1% as of December 31, 2023, from 38.5% the previous year, largely due to a reduction in gross advances by PKR 452 million. To address this, the management implemented a recovery and restructuring strategy, successfully recovering a substantial amount of non-performing advances, with hopes for further recoveries to improve the bank’s financial position. The deferred tax asset (net) totaled PKR 1,700 million as of December 31, 2023, with no additional deferred tax asset recognized during the year. External auditors have capped the deferred tax assets at PKR 1,700 million, based on the anticipated availability of future taxable profits.
Total assets of the bank decreased to PKR 17,020 million from PKR 19,587 million as of December 31, 2022, while total deposits and other accounts slightly declined to PKR 22,450 million from PKR 22,606 million the previous year. The net mark-up / interest income was negative at PKR 204 million, a significant drop from a positive PKR 666 million in the previous year. However, non-markup / interest income increased to PKR 212 million from PKR 170 million. Despite soaring inflation and rupee devaluation, the bank prudently managed its administrative expenses, which rose by 1%, with total non-mark-up expenses recorded at PKR 2,261 million, up from PKR 2,232 million in the prior year.
