Kathmandu: Hulas Finserv Hire Purchase Limited (HFL) has reported strong financial performance for Fiscal Year 2082/83 (2025/26), recording a net profit of NPR 398.72 million, an increase of 84.45% compared with NPR 216.17 million in the corresponding previous year.
The company’s results reflect its continued leadership in Nepal’s Insta Finance sector, highlighted by the following key performance indicators:
Financial Highlights & Breakdown
- Profitability: HFL reported a substantial net profit of NPR 398.72 million, marking an impressive growth of 84.45% compared to NPR 216.17 million in the previous year.
- Loan Portfolio: The overall loan portfolio expanded significantly to NPR 12.22 billion, representing a year-on-year growth of 52.25% supported primarily by the automobile financing segment.
- Asset Quality: The company successfully reduced its Non-Performing Loans (NPL) ratio from 3.40% down to 1.87%, reflecting disciplined underwriting and recovery management.
- Balance Sheet Growth: Total assets increased to NPR 12.64 billion from NPR 8.43 billion, while total equity rose to NPR 1.89 billion from NPR 1.49 billion.
- Operating Performance: Net interest income reached NPR 484.65 million (more than double last year’s NPR 221.01 million), and operating profit increased to NPR 614.68 million from NPR 335.28 million.
- Key Financial Indicators: Annualized return on equity increased to 21.12% from 14.52%, and annualized basic earnings per share rose to NPR 48.04 from NPR 26.04.
- Cost Efficiency & Spreads: The company’s cost of funds declined to 5.77% from 6.40%, while its interest-rate spread improved to 3.39% from 1.98%, and the loan-loss provision coverage strengthened to 92.34%.
A representative from Hulas Finserv said the results were achieved despite a challenging operating environment, with subdued private-sector credit growth and asset-quality concerns across Nepal’s financial sector. The company credited its performance to business expansion, operational efficiency, sound risk management and focused recovery efforts.
Going forward, Hulas Finserv said it will continue to focus on sustainable portfolio growth while strengthening asset quality, recovery mechanisms and portfolio diversification, with an emphasis on safeguarding long-term stakeholder value.
