Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL): A Fourteen - Year Financial Performance Review (Q4 2069/70 - Q4 2082/83)
Summary
Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd. (SKBBL) is Nepal's largest wholesale microfinance institution headquartered in Kathmandu, showing steady asset growth and a strong capital position over 14 years from Q4 2069/70 to Q4 2082/83, despite a recent declining trend in net profit and earnings per share.
Key Points
- SKBBL's total assets increased from Rs. 4.95 billion to Rs. 41.09 billion over 14 years, with a 58.20% spike due to RMDC acquisition in 2023.
- Loans and advances to MFIs grew at a median annual rate of 20.70%, forming over 84% of total assets by Q4 2082/83.
- SKBBL maintained a healthy capital fund to risk-weighted assets ratio and a Credit-to-Deposit ratio above 100%, suitable for its wholesale lending model.
- Net profit peaked at Rs. 1.35 billion in Q4 2080/81 but declined afterwards, impacting earnings per share and return on equity, partly due to the RMDC merger.
