Karachi May 2 2022: Ufone Microfinance Bank continue to derive strength from the Bank’s business strategy to enhance its focus towards secured portfolio; a significant part of UMBL’s micro-credit portfolio is gold-backed entailing lower credit risk than the comparatively larger unsecured portfolio of the peer group.
The bank’s growth in business volumes and strengthening of liquidity profile. Although increasing in line with last year’s projections, infection ratios of the bank compare favorably to peers in the industry.
With a shift in asset mix towards investments in T-Bills, PIBs, and mutual funds that invest in fixed income government securities, liquid assets in relation to deposits and borrowings improved in the outgoing year.
The bank maintained capitalization buffers well above the regulatory requirements. A further addition of Rs. 1.0b to the equity base is expected by June’22 in the form of a Tier-1 instrument, which is likely to help achieve the projected growth while also maintaining the capital buffers for the assigned ratings.
Going forward, bank likely to achieve robust growth while improving asset quality indicators, strengthening deposit profile and retaining buffer over regulatory capital requirement.
