KARACHI: ABHI Microfinance Bank Limited closed 2025 with a profit after tax of Rs1.019 billion, the highest ever in the bank’s history, compared to a loss of Rs1.754 billion in 2024, the company announced.
It said that this marks a sharp recovery in the bank’s financial performance leading to a Rs2.773 billion profitability swing in just one year after many years of losses.
The bank had last been profitable in 2020. The improvement came on the back of stronger balance sheet growth, higher income generation, improved recoveries, tighter credit monitoring, and better cost discipline during the year, the statement said.
The bank’s total assets increased to Rs77.066 billion, compared to Rs40.353 billion in 2024 primarily due to a significant expansion in advances, which nearly doubled to Rs37.556 billion from Rs18.387 billion a year earlier, translating to a percentage increase of 104.25 per cent.
The increase in the loan book was fuelled by a healthy increase in deposits, rising to Rs69.088 billion from Rs36.226 billion in 2024 which is a percentage increase of 90.71 per cent. This helped strengthen the bank’s funding base and supported liquidity during a year in which the broader microfinance sector continued to operate in a challenging credit and inflationary environment. The bank’s revenue profile strengthened significantly in 2025, with total revenue rising to Rs14.25 billion from Rs9.461 billion in 2024, reflecting a robust increase of 50.66 per cent. Asset quality remained a key area of focus. The bank also reported a significant reduction in credit losses with NPL ratio reducing significantly to 0.68 per cent in 2025. On the capital side, sponsor support and capital injection and organic profitability significantly helped improve the bank’s equity position.
The year also saw continued investment in governance, compliance, risk management, and internal controls. The bank strengthened internal audit coverage, compliance monitoring, AML/CFT frameworks, and regulatory alignment. These measures were aimed at improving operating discipline and supporting sustainable growth rather than short-term expansion. Digital banking remained an important part of the Bank’s forward strategy.
During the year, the bank expanded its focus on digital lending, merchant financing, Earned Wage Access, automation and technology-led customer access. Further investment in technology will continue in the coming years.
