Apna Microfinance Bank Limited (AMBL) reported a reduced net loss of Rs374.49 million for the quarter ended March 31, 2026, reflecting an improvement from the Rs491.79 million loss recorded during the corresponding period last year. The bank’s financial results indicate stronger core income, although elevated operating expenses continued to weigh on profitability.

The improvement was primarily driven by a significant turnaround in the bank’s net mark-up income. During the quarter, mark-up and interest earned increased to Rs916.70 million, while mark-up expenses stood at Rs824.99 million, resulting in a net mark-up profit of Rs91.70 million. In the same period last year, the bank had reported a net mark-up loss of Rs53.69 million, highlighting a notable recovery in its core lending operations.

Non-mark-up income also remained stable, reaching Rs81.75 million, supported by fee and commission income of Rs63.10 million and other income of Rs18.65 million. As a result, the bank’s total net income climbed to Rs173.46 million, compared with Rs28.40 million a year earlier.

Despite the improvement in revenue generation, operating expenses rose to Rs518.86 million, while credit loss allowances and write-offs amounted to Rs16.79 million, reflecting the continued challenges faced by the microfinance sector. The bank also recorded a minimum tax differential levy of Rs12.25 million, contributing to the overall quarterly loss.

On the balance sheet, total assets increased marginally to Rs20.18 billion as of March 31, 2026, compared with Rs20.13 billion at the end of December 2025. Gross advances expanded to nearly Rs11.0 billion, while investments increased to Rs2.71 billion. Customer deposits remained the bank’s primary funding source, totaling Rs29.66 billion at the end of the quarter.

The bank’s accumulated losses widened to Rs16.31 billion, resulting in negative net assets of Rs10.85 billion. However, the quarter’s reduced loss and stronger net mark-up income suggest that Apna Microfinance Bank is making gradual progress in improving its operational performance, even as it continues to navigate a challenging operating environment.