ABHI Microfinance Bank Limited closed 2025 with a profit after tax of PKR 1.019 billion, its highest ever, reversing a loss after tax of PKR 1.754 billion in 2024 and delivering a PKR 2.773 billion profitability swing after many years of losses. The bank had last reported profitability in 2020.
The improvement was underpinned by stronger balance sheet growth, higher income generation, improved recoveries, tighter credit monitoring and better cost discipline. Total assets rose to PKR 77.066 billion from PKR 40.353 billion in 2024, driven primarily by a significant expansion in advances which nearly doubled to PKR 37.556 billion from PKR 18.387 billion, a 104.25% increase.
Deposits climbed to PKR 69.088 billion from PKR 36.226 billion, an increase of 90.71%, strengthening the bank’s funding base and supporting liquidity in a microfinance sector that continued to face credit and inflationary pressures. Total revenue strengthened to PKR 14.25 billion from PKR 9.461 billion in 2024, a rise of 50.66%.
Asset quality remained a priority, with the bank reporting a significant reduction in credit losses and an NPL ratio of 0.68% in 2025. Sponsor support, capital injections and organic profitability also helped improve the bank’s equity position.
Governance, compliance, risk management and internal controls received continued investment, with expanded internal audit coverage, enhanced compliance monitoring and stronger AML/CFT frameworks to ensure regulatory alignment and disciplined, sustainable growth rather than short-term expansion.
Digital banking continued to feature prominently in the bank’s strategy, with expanded focus on digital lending, merchant financing, Earned Wage Access, automation and technology-led customer access. With stronger profitability, larger assets, improved deposits, expanded advances and better recoveries, ABHI Microfinance enters the next year from a materially stronger financial and operational position after many years.
