हुलास फिनसर्भ हायर पर्चेजको चौथो त्रैमासिक आर्थिक विवरणHulas Finserv Hire Purchase Fourth Quarter Financial Results

हुलास फिनसर्भ हायर पर्चेज लिमिटेड

नेपाल राष्ट्र बैंकबाट हायर पर्चेज कर्जा लगानी गर्न इजाजत पत्र प्राप्त संस्था

केन्द्रीय कार्यालय, त्रिपुरेश्वर, काठमाडौँ

फोन नं. ०१-५९७००५२

आ.व. २०८२/०८३ को चौथो त्रैमासिक (Fourth Quarter) संक्षिप्त आर्थिक विवरण

प्रकाशित मिति २०८३/०४/२२

Unaudited Financial Results

1. Financial Statements

1.1 Statement of Financial Position

As on Fourth Quarter End (16th July 2026) of the Fiscal Year 2082/83 (2025/26) — Figures in NPR

Assets This Quarter Ending Immediate Previous Year Ending

Cash and cash equivalent	103,808,944	116,164,408
Other trading assets	-	-
Loans and Advances to B/FIs	-	-
Loans and Advances to customers	12,218,499,662	8,025,528,201
Investment Securities	-	-
Current Tax Assets	20,840,202	40,317,994
Investment property	-	-
Property and equipment	212,181,404	105,615,476
Goodwill and Intangible assets	5,143,366	5,842,887
Deferred tax assets	3,146,500	2,910,038
Other assets	75,730,879	137,215,405
Total Assets	12,639,350,957	8,433,594,408
Borrowings	9,279,878,523	6,150,213,305
Current Tax Liabilities	-	-
Provisions	12,164,639	13,320,305
Deferred tax liabilities	-	-
Other liabilities	1,459,352,323	780,828,470
Total Liabilities	10,751,395,485	6,944,362,081
Share capital	830,000,000	830,000,000
Share premium	-	-
Retained earning	774,066,195	455,087,679
General Reserves	283,889,277	204,144,649
Total Equity attributable to equity holders	1,887,955,472	1,489,232,328
Non-controlling interests	-	-
Total Equity	1,887,955,472	1,489,232,328
Total Liabilities and Equity	12,639,350,957	8,433,594,408

1.2 Statement of Profit or Loss

For the Fourth Quarter Ended 16th July 2026 of the Fiscal Year 2082/83 (2025/26) — Figures in NPR

Particulars Current Year This Quarter Current Year Up to This Quarter (YTD) Previous Year This Quarter Previous Year Up to This Quarter (YTD)
Interest Income	280,364,137	939,179,770	164,567,090	482,383,171
Interest Expenses	126,365,574	454,532,711	92,209,126	261,370,028
Net Interest Income	153,998,563	484,647,058	72,357,964	221,013,143
Fee and Commission Income	159,414,178	560,690,209	143,456,702	468,580,618
Fee and Commission Expense	-	-	4,443,000	6,980,000
Net Fee and Commission Income	159,414,178	560,690,209	139,013,702	461,600,618
Net Interest and Commission Income	313,412,741	1,045,337,267	211,371,666	682,613,762
Net Trading Income	-	-	-	-
Other Operating Income	-	-	-	-
Total Operating Income	313,412,741	1,045,337,267	211,371,666	682,613,762
Impairment Charge/(Reversal) for Loans and Other Losses	(12,906,717)	50,016,118	9,065,697	60,989,865
Net Operating Income	326,319,458	995,321,149	202,305,969	621,623,896
Operating Expenses
Personnel Expenses	56,887,334	231,151,959	52,082,200	168,083,328
Other Operating Expenses	24,458,430	120,522,570	40,340,858	102,881,718
Depreciation and Amortization	8,066,014	28,968,047	6,884,607	15,377,274
Total Operating Expenses	89,411,777	380,642,576	99,307,665	286,342,320
Operating Profit	236,907,681	614,678,573	102,998,304	335,281,577
Non-operating Income	362,058	1,453,373	119,364	185,198
Non-operating Expense	13,233,804	17,873,539	511,090	511,090
Profit Before Income Tax	224,035,935	598,258,407	102,606,579	334,955,685
Income Tax Expenses	66,655,120	199,535,263	32,395,845	118,785,988
Current Tax	66,543,644	199,771,724	33,085,918	118,041,411
Deferred Tax	111,476	(236,461)	(690,073)	744,577
Profit for the Year	157,380,816	398,723,145	70,210,734	216,169,697
Other Comprehensive Income, Net of Income Tax	-	-	-	-
Total Comprehensive Income for the Period	157,380,816	398,723,145	70,210,734	216,169,697
Profit Attributable To:
Equity Holders	157,380,816	398,723,145	70,210,734	216,169,697
Non-controlling Interests	-	-	-	-
Profit for the Year	157,380,816	398,723,145	70,210,734	216,169,697

1.3 Statement of Distributable Profit or Loss

For the Fourth Quarter Ended 16th July 2026 — Amount in NPR

Particulars Current Year YTD Previous Year Corresponding YTD
Opening Retained Earnings	455,087,679	284,006,221
Net Profit/(Loss) as per Statement of Profit or Loss	398,723,145	216,169,697
Appropriations:
a. General Reserve	(79,744,629)	(43,233,939)
b. Foreign Exchange Fluctuation Fund	-	-
c. Capital Redemption Reserve	-	-
d. Corporate Social Responsibility Fund	-	-
e. Employee Training Fund	-	-
f. Bonus Share Issued	-	-
g. Cash Dividend Paid	-	-
h. Others	-	(1,854,300)
Profit or (Loss) Before Regulatory Adjustment	774,066,195	455,087,679
Regulatory Adjustment:
a. Interest Receivables (-)/Previous Accrued Interest Received (+)	-	-
b. Short Loan Loss Provision in Accounts (-)/Reversal (+)	-	-
c. Short Provision for Possible Losses on Investment (-)/Reversal (+)	-	-
d. Short Loan Loss Provision on Non-Banking Assets (-)/Reversal (+)	-	-
e. Deferred Tax Assets Recognized (-)/Reversal (+)	-	-
f. Goodwill Recognized (-)/Impairment of Goodwill (+)	-	-
g. Bargain Purchase Gain Recognized (-)/Reversal (+)	-	-
h. Actuarial Loss Recognized (-)/Reversal (+)	-	-
i. Others (+/-)	-	-
Distributable Profit or (Loss) as at 16th July 2026	774,066,195	455,087,679

1.4 Key Financial Indicators

Key Financial Indicators Current Year YTD Previous Year Corresponding YTD

Basic EPS (Annualized)	48.04	26.04
Diluted EPS (Annualized)	48.04	26.35

Return on Equity (Annualized) 21.12% 14.52%

Net Worth per Share 227.46 179.43

Non-Performing Loan 1.87% 3.40%

Cost of Fund 5.77% 6.40%

Interest Rate Spread 3.39% 1.88%

Gearing Ratio (Borrowings / Equity) 4.92 4.13

Provision Coverage Ratio (Loan Loss Provision / NPL) 92.34% 76.83%

1.5 Basis of Preparation and Notes

1. These unaudited financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) and the section 10.8 of directives governing hire purchase lending companies issued by Nepal Rastra Bank (NRB).

2. Loan loss provisions have been recognized at the higher of the provisioning requirement prescribed by Nepal Rastra Bank (NRB) and the Expected Credit Loss (ECL) requirement under NFRS 9.

3. Previous period figures have been regrouped, rearranged, or restated wherever necessary for the purpose of comparability.

4. These figures are unaudited and are subject to change based on the review of the Company's statutory auditor and/or directions of the Regulator.

5. This publication is made pursuant to the applicable Nepal Rastra Bank and Securities Board of Nepal disclosure requirements for licensed hire purchase lending companies.

2. Management Analysis

Operating Environment

Nepal's economy recorded moderate growth during FY2082/83, despite challenges arising from civil unrest and regional geopolitical disruptions. Private sector credit growth remained subdued at around 5.7% while the Company achieved a loan portfolio growth of 52.25% and profit growth of 84.45%, significantly outperforming the overall market. Meanwhile, Nepal Rastra Bank identified deteriorating asset quality as the banking sector's key challenge, with system-wide non-performing loans increasing from 1.31% to over 4.6% over the past three years. In contrast, the Company's non-performing loan ratio improved from 3.40% to 1.87% during the same period, demonstrating strong credit risk management and effective recovery performance.

Company Performance

Within this environment, the Company delivered strong financial performance during the quarter. The quarter experienced episodic disruptions and localized market volatility, which temporarily increased recovery intensity and collection pressures in select customer segments. Despite these pressures, our disciplined underwriting standards, early warning monitoring and focused recovery efforts have enabled us to maintain portfolio stability and protect asset quality. The loan portfolio expanded significantly by 52.25% as compared to the previous period, supported primarily by growth in the automobile segment. Profits increased by 84.45%, reflecting overall business growth and improved operational efficiency. Notably, this growth was achieved alongside an improvement in asset quality, with non-performing loans declining from 3.40% to 1.87%, and the balance sheet remains conservatively funded at a gearing of approximately 4.92 times equity - well within the Company's regulatory borrowing ceiling of 10 times net worth. The Company remains committed to strengthening asset quality, enhancing recovery mechanisms, and maintaining a balanced and diversified portfolio. We continue to focus on sustainable growth while prioritizing prudent risk management and safeguarding long-term stakeholder value.

Analysis of Interim Financial Statements

The Company reported a profit of NPR 398.72 million, a growth of 84.45%, and the overall loan portfolio stands at NPR 12,218.49 million, a growth of 52.25% in business size as compared to the corresponding previous period. This strong business growth and focused recovery effort has also improved asset quality, with non-performing loans decreasing from 3.40% to 1.87% even as the overall loan portfolio expanded significantly.

3. Details of Legal Proceedings

a) No information regarding any lawsuit by or against the Company has been filed during the period under review, except the regular cases of debt recovery.

4. Corporate Governance

The Company is committed to maintaining a high level of ethical standards, corporate governance, and compliance. The Board of Directors and management strictly comply with the regulatory norms issued by Nepal Rastra Bank (NRB) and other regulatory authorities. Further, the Company adheres to all regulatory and legal requirements and industry best practices.

नोट: कम्पनी ऐन, २०६३ को दफा ८४ तथा नेपाल राष्ट्र बैंकको हायर पर्चेज कर्जा दिने कम्पनीलाई स्वीकृति दिने नीतिगत एवम् प्रक्रियागत व्यवस्था, २०७० (चौथो संशोधन, २०८०) को नियम नं. १०.८ को प्रयोजनार्थ यस हायर पर्चेज कर्जा दिने कम्पनी हुलास फिनसर्भ हायर पर्चेज लिमिटेड (साविक हुलास फिन सर्भ लि.) को आ.व. २०८२/०८३ को चौथो त्रैमासिक संक्षिप्त आर्थिक विवरण प्रकाशन गरिएको व्यहोरा सम्बन्धित सबैको जानकारीको लागि सूचित गरिन्छ ।