Trust Micro Insurance Sees Massive Surge in Interest Income but Profit Plunges in Q3

Kathmandu — Trust Micro Insurance has released its third quarter financial report for the current fiscal year, reflecting a dramatic rise in net interest income but a sharp drop in net profit due to soaring expenses.

The company posted a net interest income of Rs 26.4 million as of the end of Chaitra, a staggering increase of over 4048% compared to just Rs 638,000 during the same period last fiscal year.

Despite this significant gain, Trust Micro Insurance’s net profit fell by 67.58%, dropping from Rs 11.4 million to Rs 3.72 million during the review period. The decline in profitability has been attributed to a steep rise in expenses.

Total income of the company surged by 197.56 %, rising from Rs 28.2 million to Rs 84.03 million. However, total expenses outpaced income growth, reaching by 564.94% from Rs 11.8 million to Rs 78.7 million.

As of the third quarter, the insurer has a paid-up capital of Rs 525 million. It has allocated Rs 500,000 to its disaster fund, Rs 4.8 million to its reserve fund, and Rs 5.4 million to a special reserve.

Earnings per share (EPS) also took a hit, falling to Rs 0.71 from Rs 2.19 in the corresponding period last year with a decrease of Rs 1.48.