NPF Microfinance Bank Plc (NGX: NPFMCRFBNK) has released its audited financial results for the year ended December 31, 2025, showing increase in both gross earnings and profit for the period.
Gross earnings rose by 49% to ₦19.24 billion, compared to ₦12.95 billion recorded in 2024. The growth was driven mainly by higher interest income from loans and advances, treasury bills, and money market placements.
Interest income increased by 52% to ₦17.41 billion, up from ₦11.47 billion in the previous year, while interest expense rose by 49% to ₦1.64 billion.
Net Interest income rose to N15.76 billion from N10.37 billion.
Fee and commission income also rose by 24% to ₦1.82 billion.
Personnel expenses rose by 26% to ₦5.77 billion, from ₦4.57 billion, driven by higher staff costs and benefit obligations.
Other operating expenses climbed by 26% to ₦5.44 billion, compared to ₦4.31 billion in the previous year
Finance cost increased by 49% to ₦1.64 billion, up from ₦1.10 billion, reflecting higher funding costs associated with term deposits and borrowings.
Other income declined by 36% to ₦5.89 million, compared to ₦9.26 million in the previous year.
Despite the rise in costs and decline in other income, profit before tax rose sharply by 134% to ₦5.69 billion, compared to ₦2.44 billion recorded in 2024.
After tax expenses of ₦1.67 billion, profit after tax increased by 156% to ₦4.03 billion, from ₦1.57 billion in the previous year.
Earnings per share improved significantly to 67 kobo, compared to 26 kobo in 2024, representing a 158% increase.
On the balance sheet, total assets declined slightly by 1% to ₦68.09 billion, from ₦68.63 billion in 2024.
Major Components of Assets
Loans and advances to customers rose sharply by 54% to ₦39.39 billion, from ₦25.53 billion, reflecting aggressive credit expansion.
Cash and cash equivalents declined by 42% to ₦19.76 billion, compared to ₦33.84 billion, as liquidity was deployed into loan creation and operational activities.
Investment securities declined by 11% to ₦3.45 billion, from ₦3.88 billion.
Property and equipment increased by 13% to ₦2.00 billion.
Other assets rose by 42% to ₦1.23 billion, supported by higher inventories and receivables.
Total liabilities declined by 6% to ₦53.10 billion, from ₦56.78 billion in the previous year, reflecting improved balance sheet efficiency.
Major Components of Liabilities
Customer deposits increased modestly by 2% to ₦42.95 billion, from ₦42.06 billion.
Borrowings surged by 441% to ₦3.10 billion, compared to ₦572 million in 2024,
Other liabilities declined sharply by 60% to ₦5.32 billion, from ₦13.23 billion.
Current tax liabilities rose by 94% to ₦1.67 billion, reflecting higher taxable profits.
Shareholders’ equity strengthened significantly during the year. Total equity rose by 27% to ₦14.99 billion, from ₦11.85 billion in 2024, driven mainly by retained earnings growth to ₦5.46 billion, up from ₦2.31 billion, and improved profit retention.
From a cash flow perspective, operating performance weakened despite higher profitability.
Net cash used in operating activities widened to ₦14.33 billion, compared to a net inflow of ₦19.22 billion in 2024, mainly due to increased loan disbursements and working capital movements.
Net cash used in investing activities rose by 59% to ₦1.12 billion, reflecting higher spending on property, equipment, and intangible assets.
Financing activities recorded a net cash inflow of ₦1.42 billion, compared to a net outflow of ₦2.29 billion in the prior year, supported by new borrowings despite dividend payments.
As a result, cash and cash equivalents declined by 42% to ₦19.76 billion, from ₦33.84 billion at the end of 2024.
The share price rose by 5.59% to close at N5.86 per share on NGX on Thursday.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
