NPF Microfinance Bank H1 2026 profit up 7.7% to N3.2bn amid rising funding costs
NPF Microfinance Bank Plc reported a profit before tax of N3.20 billion for the six months ended June 30 2026, up 7.70% from N2.97 billion in the same period of 2025. Profit after tax rose 5.68% to N2.04 billion, and basic earnings per share increased 6.25% to 34 kobo. Gross earnings grew 21.17% to N11.18 billion, driven by a 25.15% jump in interest income to N10.18 billion, which made up about 91% of gross earnings. However, interest expense surged 121.19% to N1.35 billion, offsetting some of the income growth, while fees and commission income fell 9.55% to N985.60 million.
On the balance sheet, total assets rose 15.86% to N61.70 billion, mainly due to a 33.29% increase in loans and advances to customers, now N48.13 billion. Cash and cash equivalents fell 58.03% to N4.12 billion, while borrowings jumped 616.10% to N2.34 billion. Customer deposits grew 11.02% to N38.74 billion. The bank’s shares closed at N5.10 on July 24 2026, up 37.47% year‑to‑date.
The results show strong loan‑book expansion and revenue growth, but rising funding costs and operating expenses are pressuring margins and reducing liquidity. For investors, the stock’s YTD gain signals market confidence, yet the sharp rise in borrowings warrants caution. Depositors should note the growing deposit base alongside declining cash reserves. Will the bank’s reliance on expensive funding sustain its profit growth, or will rising costs force a reassessment of lending rates and deposit pricing?