NPF Microfinance Bank Plc has recorded a profit before tax of N3.20 billion for the first half of 2026, reflecting a 7.70% increase compared with N2.97 billion reported in the same period last year.
The growth was disclosed in the bank’s unaudited financial statements filed with the Nigerian Exchange (NGX) on July 24, 2026. The results showed that the microfinance lender sustained earnings growth during the period, supported mainly by stronger interest income and expansion in its loan portfolio.
Profit after tax rose to N2.04 billion in H1 2026, representing a 5.68% increase from N1.93 billion recorded in H1 2025. The bank’s basic and diluted earnings per share also improved to 34 kobo, up 6.25% from 32 kobo in the comparable period.
The improved earnings performance came on the back of stronger income generation, particularly from interest-bearing activities. Interest income increased by 25.15% year-on-year to N10.18 billion from N8.14 billion, accounting for approximately 91% of the bank’s gross earnings of N11.18 billion.
However, the positive impact of higher interest income was partly reduced by rising funding costs and increased operating expenses during the period.
Revenue growth driven by lending activities
NPF Microfinance Bank’s gross earnings increased by 21.17% to N11.18 billion from N9.23 billion in H1 2025, while revenue rose by 13.96% to N9.82 billion compared with N8.62 billion recorded a year earlier.
Net interest income climbed by 17.36% to N8.83 billion from N7.53 billion, accounting for nearly 90% of total revenue during the period.
The increase reflected stronger returns from the bank’s interest-earning assets, as the lender continued to expand its lending activities. However, the growth in interest income was moderated by a sharp rise in interest expenses.
Interest expenses surged by 121.19% to N1.35 billion from N610.17 million, indicating increased funding pressure during the period. The faster rise in financing costs reduced the pace of net interest income growth compared with the increase recorded in interest income.
Meanwhile, fees and commission income declined by 9.55% to N985.60 million from N1.09 billion, reducing the contribution of non-interest income and increasing reliance on interest-based earnings.
Rising expenses weigh on profit expansion
Despite stronger revenue generation, increased operating costs limited the pace of profit growth.
Personnel expenses rose by 11.89% to N2.82 billion, while other operating expenses increased by 18.22% to N3.38 billion. Depreciation expenses also climbed by 43.58% to N380.22 million.
The bank recorded a significant increase in amortisation expenses, which rose to N47.19 million from N261,000 in the previous year.
The combination of higher funding costs and increased operational expenses meant that profit growth remained below revenue growth. While revenue expanded by 13.96%, profit before tax increased by 7.70%.
Profit after tax growth was further affected by higher tax obligations, with income tax expense rising by 11.50% to N1.15 billion during the period.
Loan expansion strengthens balance sheet
NPF Microfinance Bank’s balance sheet expanded during the review period, with total assets rising by 15.86% to N61.70 billion from N53.26 billion.
The growth was largely driven by an increase in loans and advances to customers, which rose by 33.29% to N48.13 billion. The loan portfolio represented 78.01% of the bank’s total assets, highlighting the lender’s continued focus on credit expansion.
Cash and cash equivalents, however, declined significantly by 58.03% to N4.12 billion from N9.82 billion.
Other assets increased by 71.84% to N1.52 billion, contributing to the overall growth in assets.
On the funding side, total liabilities increased by 16.66% to N47.08 billion, slightly exceeding the 13.37% growth in shareholders’ funds, which rose to N14.62 billion from N12.90 billion.
Customer deposits grew by 11.02% to N38.74 billion, while borrowings recorded a sharp increase, rising to N2.34 billion from N327.17 million. This represents a 616.10% jump during the period.
Investors maintain positive outlook as shares gain 37% in 2026
NPF Microfinance Bank shares closed trading at N5.10 on Friday, July 24, 2026, after recording a year-to-date gain of 37.47%.
The stock, which began the year at N3.71, ranked 64th on the NGX based on year-to-date performance.
The share price reached a high of N5.74 in May 2026 following strong gains earlier in the year before experiencing a correction in June, when it declined by 17.25% to N4.75.
The stock regained some momentum in July, rising by 7.37% month-to-date to close at N5.10, reflecting renewed investor interest following the company’s latest financial performance.
Overall, NPF Microfinance Bank’s H1 2026 results show continued earnings growth supported by stronger lending activity and interest income, although rising funding costs and operating expenses remain key factors influencing profitability.