AMBL

⚡ Flash Summary

Apna Microfinance Bank Limited reported a net loss of PKR 1,345.56 million for the nine months ended September 30, 2025, compared to a loss of PKR 2,286.63 million in the same period last year. This represents a significant reduction in losses, although the bank remains unprofitable. Net mark-up/interest income increased slightly, while non-mark-up/interest income grew more substantially. Credit loss allowances continue to impact profitability, but were lower than the previous year. The bank’s net assets remain negative.

📌 Key Takeaways

• 📉 Net loss for the nine months ended September 30, 2025, was PKR 1,345.56 million, an improvement from the PKR 2,286.63 million loss in 2024.
• ⬆️ Net mark-up/interest income increased to PKR 4.90 million from a loss of PKR 699.48 million in the prior year.
• ⬆️ Total non-mark-up/interest income rose to PKR 258.04 million from PKR 205.70 million in 2024.
• ⬇️ Operating expenses decreased to PKR 1,520.62 million from PKR 1,660.03 million year-over-year.
• ⬇️ Credit loss allowance decreased to PKR 57.51 million from PKR 102.35 million in the prior year.
• ⚠️ Loss per share (basic and diluted) was PKR 3.14, compared to PKR 5.33 in 2024.
• ⬇️ Total assets increased to PKR 19,328.59 million as of September 30, 2025, from PKR 17,445.62 million at the end of 2024.
• ⬆️ Advances (loans) increased to PKR 9,546.38 million from PKR 8,195.98 million at the end of 2024.
• ⬆️ Deposits and other accounts increased to PKR 28,348.93 million from PKR 25,674.40 million at the end of 2024.
• ➖ Net assets remained negative at PKR (10,156.31) million compared to PKR (9,432.70) million at the end of 2024.
• ⬆️ Cash and balances with treasury banks decreased to PKR 1,105.37 million from PKR 1,645.89 million at the end of 2024.
• ⬆️ Investments increased to PKR 2,395.85 million from PKR 1,873.48 million at the end of 2024.
• 💸 Share deposit money increased to PKR 2,350.39 million from PKR 1,850.39 million at the end of 2024.

🎯 Investment Thesis

Given the continued losses and negative net assets, a SELL recommendation is appropriate. While the reduction in losses is encouraging, the bank still needs to achieve profitability and strengthen its balance sheet before becoming an attractive investment. The price target is dependent on the bank’s ability to turn profitable.