Kathmandu, Aug. 8
Hulas Finserv Hire Purchase Limited (HFL) recorded a
net profit of Rs. 398.72 million in the fiscal year 2025/26, up 84.45 per cent
from Rs. 216.17 million a year earlier.
The company said in a statement that amid a
challenging operating environment in Nepal’s financial sector, its loan
portfolio expanded 52.25 per cent year-on-year to Rs. 12.22 billion, driven
mainly by growth in automobile financing.
At the same time, HFL improved its asset quality,
reducing its non-performing loan (NPL) ratio to 1.87 per cent from 3.40 per
cent. Total assets increased to Rs. 12.64 billion from Rs. 8.43 billion, while
shareholders’ equity rose to Rs. 1.89 billion from Rs. 1.49 billion.
HFL’s operating performance also strengthened
significantly. Net interest income more than doubled to Rs. 484.65 million from
Rs. 221.01 million, while operating profit increased to Rs. 614.68 million from
Rs. 335.28 million.
HFL also reported improvements in funding costs and
interest spreads, read the statement. Its cost of funds declined to 5.77 per
cent from 6.40 per cent, while the interest-rate spread widened to 3.39 per
cent from 1.98 per cent. Loan-loss provision coverage stood at 92.34 per cent.
The company attributed the improved results to
business expansion, operational efficiency, prudent risk management and focused
recovery efforts despite subdued private-sector credit growth and asset-quality
concerns in Nepal’s financial sector.
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