According to Nino Devdariani, Chairperson of the Microfinance Association, the sector's profitability is growing both in absolute terms and in relation to capital.
As Devdariani clarified to "Commersant," if in 2023-2024 the return on equity stood at 17-18%, then in 2025 this figure climbed to 20%.
The chairperson of the Association of Microfinance Organizations believes that the increase in profitability is mainly caused by the optimization of expenses.
"As for the main factors driving profitability, if we look at the income side, investments are showing a downward trend and have decreased. For example, if in 2024 the average level of portfolio investments was around 24.5%, this year it has dropped to 23.9%. This is the price at which organizations in the sector sell loans. There is clearly a decrease in the cost of money in this direction, despite the fact that in recent years there has been no reduction in the cost of money in the sector. So what is the reason for the increase in profitability? It is more related to expenses. One component is the cost of money that the sector attracts. The second is the risk component—the sector is less risky today than in previous years. 'The third and very important factor is cuts in operating expenses,' Nino Devdariani notes.
