NPF Microfinance Bank Plc has reported a profit before tax of N3.20 billion for the six months ended June 30, 2026, representing an increase of 7.70% from N2.97 billion in the corresponding period of 2025.

According to the unaudited financial statements filed with the NGX on July 24, 2026, NPF Microfinance Bank’s profit after tax rose by 5.68% to N2.04 billion in H1 2026, from N1.93 billion in H1 2025.

Basic and diluted earnings per share also increased by 6.25% to 34 kobo, from 32 kobo in the corresponding period.

The improvement in earnings was supported by a 25.15% increase in interest income to N10.18 billion. Interest income accounted for about 91% of the bank’s gross earnings of N11.18 billion, although the impact was partly moderated by a 121.19% increase in interest expense and higher operating costs.

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Key Highlights

  • Gross earnings: N11.18 billion (Up 21.17% YoY from N9.23 billion)
  • Interest income: N10.18 billion (Up 25.15% YoY from N8.14 billion)
  • Interest expense: N1.35 billion (Up 121.19% YoY from N610.17 million)
  • Net interest income: N8.83 billion (Up 17.36% YoY from N7.53 billion)
  • Fees and commission income: N985.60 million (Down 9.55% YoY from N1.09 billion).
  • Revenue: N9.82 billion (Up 13.96% YoY from N8.62 billion).
  • Total assets: N61.70 billion (Up 15.86% from N53.26 billion)
  • Cash and cash equivalents: N4.12 billion (Down 58.03% from N9.82 billion)
  • Shareholders’ funds: N14.621 billion (Up 13.37% from N12.896 billion).

Driving the numbers

The bank’s H1 2026 performance was driven by strong growth in gross earnings/revenue.

  • Revenue increased by 13.96% to 9.82 billion, driven mainly by stronger interest-based earnings.
  • Net interest income rose by 17.36% to N8.83 billion and accounted for about 89.96% of reported revenue during the period.
  • Interest income increased by 25.15% to N10.18 billion, reflecting stronger income from the bank’s interest-earning activities.

However, interest expenses rose much faster, increasing 121.19% to N1.35 billion. This significantly higher funding cost limited the impact of the increase in interest income, causing net interest income to grow more slowly than gross interest income.

  • Fees and commission income declined by 9.55% to N985.60 million and contributed about 10.04% of revenue.

The decline weakened the contribution of non-interest income and left the bank more dependent on interest earnings.

  • Operating costs also increased during the period. Personnel expenses rose by 11.89% to N2.82 billion, while other operating expenses increased by 18.22% to N3.38 billion.
  • Depreciation rose by 43.58% to N380.22 million, while amortization of intangible assets increased to N47.19 million from N261,000.

The combination of higher funding costs and rising operating expenses meant that profit growth lagged revenue growth.

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  • Profit before tax increased by 7.70%, compared with the 13.96% increase in revenue.
  • Profit after tax grew more slowly, rising by 5.68% to N2.04 billion, as income tax expense increased by 11.50% to N1.15 billion.

Balance sheet

On the balance sheet, loans and advances to customers increased by 33.29% to N48.13 billion and accounted for 78.01% of total assets.

  • The expansion in the loan book was the main driver of the 15.86% growth in total assets to N61.70 billion.
  • Cash and cash equivalents declined by 58.03% to N4.12 billion, while other assets rose by 71.84% to N1.52 billion.
  • Total liabilities increased by 16.66% to N47.08 billion, slightly ahead of the 13.37% growth in shareholders’ equity to N14.62 billion.

Customer deposits increased by 11.02% to N38.74 billion. However, borrowings rose sharply to N2.34 billion from N327.17 million, representing an increase of 616.10%.

Market reaction

NPF Microfinance Bank’s shares closed at N5.10 on Friday, July 24, 2026. The stock has gained 37.47% year-to-date, rising from N3.71 at the start of the year and ranking 64th on the NGX by year-to-date performance.

The share price rallied to N5.74 in May 2026 after strong gains earlier in the year, before giving up part of those gains in June with a 17.25% monthly decline to N4.75.

The stock recovered some of the losses in July, rising 7.37% month-to-date to N5.10.