KARACHI — ABHI Microfinance Bank Limited closed 2025 with a profit after tax of PKR 1.019 billion, reversing a loss after tax of PKR 1.754 billion in 2024 and delivering a PKR 2.773 billion profitability swing after years of losses. The bank, which was last profitable in 2020, credited the recovery to stronger balance sheet growth, higher income generation, improved recoveries, tighter credit monitoring, and better cost discipline.
The bank’s total assets rose to PKR 77.066 billion from PKR 40.353 billion a year earlier, driven principally by a near doubling of advances to PKR 37.556 billion from PKR 18.387 billion, a 104.25% increase. Customer deposits also strengthened markedly, climbing to PKR 69.088 billion from PKR 36.226 billion, an increase of 90.71%, which helped bolster the funding base and liquidity amid a challenging microfinance environment in Pakistan.
Revenue performance improved substantially, with total income rising to PKR 14.25 billion from PKR 9.461 billion in 2024, up 50.66%. Asset quality showed meaningful progress as credit losses fell and the non-performing loan ratio dropped to 0.68%. On the capital front, sponsor support, a capital injection and organic profitability contributed to a healthier equity position for the bank.
Management invested in governance and controls during the year, expanding internal audit coverage and strengthening compliance monitoring, AML/CFT frameworks, risk management and regulatory alignment. These measures were implemented to improve operational discipline and support sustainable growth rather than to pursue short-term expansion.
Digital banking remained central to the bank’s forward strategy. ABHI Bank expanded offerings in digital lending, merchant financing and Earned Wage Access while pursuing automation and technology-led customer access. Further technology investment is planned to sustain momentum. With stronger profitability, higher assets, improved deposits, an expanded advances book and better recoveries, ABHI Bank finished 2025 in a materially stronger financial and operational position.
