U Microfinance Bank Posts 353% Growth in Profits in 2017

U Microfinance Bank has made tremendous strides during 2017, with its profits increasing by more than three times this year. The rise in profits has been attributed to the increasing volume of loans to beneficiaries and interest-based margins earned against it.

According to the bank’s financial statement released recently, U Microfinance’s profits increased to Rs. 258 million in 2017, as against Rs. 72.3 million recorded in 2016.

The microfinance bank earned an income of Rs. 1.4 billion from interest in 2017, compared to Rs. 578 million that it earned in 2016. The bank’s non-interest income stood at Rs 458 million in 2017 as compared to Rs. 318 million in 2016.

The balance sheet of the bank showed its healthy progress in 2017 through various indicators.

U Microfinance Bank Limited’s Ubank, is a wholly owned subsidiary of PTCL. Ubank also provides branchless banking services under brand name of ‘U Paisa’ in collaboration with Ufone.

U Microfinance Bank’s loan customer portfolio grew from 118,160 customers in 2016 to 625,163 in 2017. The bank stated that 30% of their customers were women. Its customer deposits grew from Rs. 8.1 billion to Rs. 11.97 billion, while their loan portfolio grew from Rs. 5.5 billion to Rs. 10.64  billion.

Most significantly, the bank’s network grew from 100 touch points to 119. Its staff increased from 939 employees in 2016 to 1321 in 2017, with 9% of the total workforce comprising of women.

The microfinance bank is working towards expanding its footprint in the rural areas of the country, providing banking services, especially loans to targeted customers.