ABHI Microfinance Bank Limited closed 2025 with a profit after tax of PKR 1.019 billion (highest ever in the bank’s history), compared to a loss after tax of PKR 1.754 billion in 2024, marking a sharp recovery in the Bank’s financial performance leading to a PKR 2.773 billion profitability swing in just one year after many years of losses.
It is noteworthy that 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 Bank’s total assets increased to PKR 77.066 billion, compared to PKR 40.353 billion in 2024 primarily due to a significant expansion in advances, which nearly doubled to PKR 37.556 billion from PKR 18.387 billion a year earlier, translating to a percentage increase of 104.25%.
The increase in the loan book was fueled by a healthy increase in deposits, rising to PKR 69.088 billion from PKR 36.226 billion in 2024 which is a percentage increase of 90.71%. 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 PKR 14.25 billion from PKR 9.461 billion in 2024, reflecting a robust increase of 50.66%. 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% 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. With stronger profitability, higher assets, improved deposits, expanded advances, better recoveries, and continued focus on digital capability, ABHI Microfinance Bank ended 2025 with a materially stronger financial and operational position after many years.