FINCA Microfinance Bank Ltd’s profits saw a decline of 31.7% in 2019 to Rs. 653 million as compared to a profit of Rs. 956.48 million in 2018.
According to the annual report, during 2019 the bank’s net-markup income registered an increase of 13% and closed at Rs. 5.314 million as compared to Rs. 4.703 billion in 2018.
The mark-up on advances was the main contributor as a considerable increase of 27.3% was recorded. The non-markup income registered an increase of 19% and closed at Rs. 954 million as compared to Rs. 802 million in 2018.
The Fee, Commission & Brokerage income of the bank was also one of the main contributors as almost 84% non-markup income was generated from Fee & Commission Income.
The administrative expenses increased to Rs. 4.102 billion, recording an increase of 19% as compared to Rs. 3.45 billion in 2018. The net assets were reported at Rs. 4,718 million, reflecting an increase of 17% over 2018 whereas the increase in net assets was driven by Investments, Operating fixed assets, and Deferred Tax assets over the past years.
The net investment of the bank was reported at Rs. 6.244 billion, reflecting an increase of Rs. 2.417 billion over 2018 in absolute terms as 100% of the investment is in Market Treasury Bills.
The total asset base of the FINCA Pakistan crossed Rs. 37.311 million in 2019 as compared to the previous year, reflecting an increase of 16% over 2018. The increase in the asset base is driven by Investments, Operating fixed assets, and Deferred Tax assets over the past years.
The deposit was reported to be Rs. 23.911 billion and recorded an increase of 0.7% over 2018 with current accounts growing by 11.2%, saving by 4% and fixed by -1.5%.
The total liabilities of the bank registered an increase of 15% and closed at Rs. 32.594 billion as compared to Rs. 28.247 billion in 2018. The major increase in liabilities was driven by new sources of financing obtained in 2019.
SimSim Continues its Growth
FINCA Pakistan currently has two main avenues of digital mobile wallets, SimSim & FINCA Pakistan Urdu application.
SimSim customer portfolio was closed at 0.45 million in December 2019, 445,000 mobile wallets with 49,750 monthly active users & 68,598 quarterly active user base in 2019 while successfully carrying out business transactions worth more than Rs. 43.5 billion from its launch until the end of 2019.
In December 2019, SimSim achieved another significant milestone of corporate disbursements worth more than Rs. 0.7 billion.
SimSim was launched as the country’s first mobile network agnostic digital payment wallet in July 2017 and is continuously making progress in digitally transforming consumer and corporate profiles by offering innovative and impactful solutions. The product, in its entirety, offers a world of cashless payments under one platform enabling free, frictionless, and real-time transactions on the go.
FINCA Pakistan has continued to invest and grow in the digital space of the banking industry. In 2019, it expanded SimSim to include digital loans, online marketplace, life insurance, and online food ordering services. It has helped provide the bank’s customers with a platform to maintain and strengthen their financial health.
Through this digital platform, FINCA Pakistan has also made leaps in the acquisition of corporate SimSim Business is serving hundreds of corporates for multiple business solutions in various markets & segments throughout the country partners for its payroll solution.
In 2019, employees of more than 100 well-known corporates from across Pakistan were registered. These corporates have utilized SimSim to disburse salaries to employees and process vendor payments. Many of these employees were previously financially excluded. By getting their salaries in the wallet, they are able to track their usage and consequently get access to digital loans.
