NPF Microfinance Bank Plc announced a 7.70% rise in its profit before tax, reaching N3.20 billion for the six months ended June 30, 2026. This is an increase from N2.97 billion recorded in the corresponding period of 2025.
The unaudited financial statements, filed with the NGX on July 24, 2026, also showed that profit after tax for H1 2026 increased by 5.68% to N2.04 billion, up from N1.93 billion in H1 2025. Basic and diluted earnings per share saw a 6.25% increase, moving from 32 kobo to 34 kobo.
The bank's improved earnings were largely supported by a 25.15% increase in interest income, which reached N10.18 billion. Interest income constituted approximately 91% of the bank’s gross earnings of N11.18 billion, which itself grew by 21.17% year-on-year from N9.23 billion.
However, the positive impact of rising interest income was partly offset by a substantial 121.19% increase in interest expense, which climbed to N1.35 billion from N610.17 million. This higher funding cost meant that net interest income grew at a slower pace of 17.36% to N8.83 billion, compared to N7.53 billion in H1 2025.
Revenue for the period increased by 13.96% to N9.82 billion, predominantly driven by stronger interest-based earnings. Net interest income accounted for about 89.96% of the reported revenue.
Conversely, fees and commission income declined by 9.55% to N985.60 million, contributing approximately 10.04% of the total revenue. This decline weakened the contribution of non-interest income, making the bank more reliant on its interest earnings.
Operating costs also saw an uptick during the period. Personnel expenses rose by 11.89% to N2.82 billion, while other operating expenses increased by 18.22% to N3.38 billion. Depreciation was up by 43.58% to N380.22 million, and amortization of intangible assets significantly increased to N47.19 million from N261,000.
The combined effect of higher funding costs and increasing operating expenses resulted in profit growth lagging behind revenue growth. Profit before tax increased by 7.70%, while revenue grew by 13.96%. Profit after tax grew even more slowly, rising by 5.68% to N2.04 billion, as income tax expense increased by 11.50% to N1.15 billion.
On the balance sheet, total assets grew by 15.86% to N61.70 billion from N53.26 billion. This expansion was primarily driven by a 33.29% increase in loans and advances to customers, which reached N48.13 billion and accounted for 78.01% of total assets.
Cash and cash equivalents, however, declined by 58.03% to N4.12 billion from N9.82 billion, while other assets rose by 71.84% to N1.52 billion. Total liabilities increased by 16.66% to N47.08 billion, slightly outpacing the 13.37% growth in shareholders’ equity to N14.62 billion.
Customer deposits increased by 11.02% to N38.74 billion. Notably, borrowings surged by 616.10% to N2.34 billion, up from N327.17 million in the prior year.
NPF Microfinance Bank’s shares closed at N5.10 on Friday, July 24, 2026. The stock has posted a 37.47% gain year-to-date, starting from N3.71 at the beginning of the year and ranking 64th on the NGX by year-to-date performance.
The share price rallied to N5.74 in May 2026 following earlier strong gains, before experiencing a 17.25% monthly decline in June to N4.75. The stock recovered some of these losses in July, rising 7.37% month-to-date to N5.10.
