Apna Microfinance Bank Limited reported a loss of Rs762.7 million for the six months ended June 30, 2026, although the loss narrowed compared with the Rs822.4 million recorded in the corresponding period of 2025.
According to the bank’s unaudited condensed interim financial statements, the company’s loss per share improved to Rs1.78 in the first half of 2026 from Rs1.92 a year earlier.
Markup income improves significantly
The bank recorded markup/return/interest earned of Rs1.94 billion during the six-month period, up from Rs1.51 billion in the same period of 2025.
Markup/return/interest expense, however, also increased to approximately Rs1.72 billion from Rs1.46 billion. As a result, the bank’s net markup/interest income rose to Rs223.3 million, compared with Rs50.6 million in the prior-year period.
Non-markup income also strengthened. Fee and commission income stood at Rs118.6 million, while other income amounted to approximately Rs32.0 million, taking total non-markup/interest income to Rs150.6 million, compared with Rs183.7 million a year earlier.
Credit costs remain a major pressure
Despite the improvement in net markup income, the bank continued to face significant credit-related costs. The loss for the period before levy and taxation stood at Rs737.0 million, compared with Rs801.7 million in the first half of 2025.
The financial statements show a loss for the period of Rs762.7 million, while credit loss allowance amounted to approximately Rs687.5 million during the six months. Operating expenses were also substantial at around Rs1.06 billion.
Balance sheet remains under strain
As of June 30, 2026, Apna Microfinance Bank reported total assets of Rs20.75 billion, broadly in line with Rs20.73 billion at the end of 2025.
However, total liabilities stood at approximately Rs32.02 billion, leaving the bank with negative net assets of Rs11.27 billion. The accumulated loss reached approximately Rs16.61 billion by the end of the reporting period.
Deposits and other accounts stood at about Rs30.06 billion, compared with Rs30.06 billion at the end of December 2025, while advances increased to approximately Rs11.15 billion from Rs10.57 billion.
Cash position declines
The bank’s cash and balances with treasury banks stood at approximately Rs1.22 billion at June 30, 2026, compared with Rs1.29 billion at the end of 2025.
The cash flow statement also showed net cash outflow from operating activities of Rs631.5 million during the first half, compared with a net inflow of Rs300.7 million in the corresponding period last year. Cash and cash equivalents at the end of June 2026 stood at approximately Rs3.18 billion.
Quarterly performance
For the April-June quarter, the bank posted a loss of Rs420.4 million, compared with a loss of Rs363.5 million in the same quarter of 2025. This indicates that while the first-half loss improved year-on-year, the second quarter itself remained challenging.
Overall, Apna Microfinance Bank’s first-half results show better core markup income and a narrower year-to-date loss, but substantial credit loss provisions, operating expenses and a deeply negative net asset position continue to weigh heavily on the bank’s financial performance.
