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U Microfinance Bank maintained an outstanding financial performance in 2020 with a profit growth of 257 percent year-on-year, which is an all-time high record profit despite the challenges of the pandemic and lockdowns.

According to a financial statement, U Microfinance Bank had made a profit of Rs. 906 million in 2020 as compared to its profit of Rs. 253 million registered in 2019, which depicts an increase of Rs. 652 million in one year.

Last year, the bank had suffered a drop in profitability by over 50 percent, but surprisingly managed to bounce back regardless of the multiple challenges posed by the microfinance sector and its customers.


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U Microfinance Bank has improved its financial health and footprints remarkably over the last five years. Its loan book has increased from Rs. 1 billion to Rs. 30 billion, while the deposits have increased from Rs. 1 billion to Rs. 46 billion. Its investment book has also grown from Rs. 180 million to Rs. 24 billion; and it even developed a diversified borrowing book to fuel its growth, which stands at Rs. 13 billion.

The capital of the bank has grown from Rs. 1 billion to Rs. 5.6 billion, including Tier 1 equity, additional Tier 1 equity, and accumulated profit. Additionally, its shareholders have injected Tier 2 capital, which is Rs. 2.8 billion.


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During the said period, the value of the balance sheet had surged from Rs. 2.3 billion to Rs. 70 billion, showing a variance of 3,014 percent.

The bank has a network of more than 200 touchpoints across 183 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions.

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