Hulas Finserv Hire Purchase reports 84.45 pc rise in net profit for FY2025/26

KATHMANDU: Hulas Finserv Hire Purchase (HFL) reported a net profit of Rs 398.72 million for fiscal year 2025/26, up 84.45% from Rs 216.17 million a year earlier.

The company said its loan portfolio expanded to Rs 12.22 billion, up 52.25% year-on-year, driven largely by automobile financing. Total assets rose to Rs 12.64 billion from Rs 8.43 billion, while total equity increased to Rs 1.89 billion from Rs 1.49 billion.

HFL reported an improvement in asset quality, with its non-performing loan (NPL) ratio falling to 1.87% from 3.40%. Net interest income more than doubled to Rs 484.65 million from Rs 221.01 million, and operating profit climbed to Rs 614.68 million from Rs 335.28 million.

Key performance measures also strengthened. Annualised return on equity rose to 21.12% from 14.52%, and annualised basic earnings per share increased to Rs 48.04 from Rs 26.04. The company’s cost of funds declined to 5.77% from 6.40%, interest-rate spread widened to 3.39% from 1.98%, and loan-loss provision coverage improved to 92.34%.

A Hulas Finserv representative 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, and credited business expansion, operational efficiency, sound risk management and focused recovery efforts for the performance.

HFL said it will continue to concentrate on sustainable portfolio growth while strengthening asset quality, recovery mechanisms and portfolio diversification, with an emphasis on safeguarding long-term stakeholder value.