नेपाल फाइनान्स लिमिटेडको प्रथम त्रैमासिक वित्तीय विवरणNepal Finance Limited: Q1 Financial Results (FY 2083/84)
- वर्ग:Category:
- Financial Analysis
- प्रकाशित मिति:Published:
- Published on November 2, 2026
नेपाल फाइनान्स लिमिटेड
Nepal Finance Limited
“नेपाल राष्ट्र बैंकबाट “ग” वर्गको इजाजतपत्रप्राप्त संस्था”
Unaudited Financial Results (Quarterly)
1st Quarter End of Fiscal Year 2083/84
Condensed Consolidated Statement of Financial Position (Provisional)
As on Quarter ended 31 Ashwin 2083 Amount in NPR
| Assets | This Quarter Ending | Immediate Previous Year Ending |
|---|---|---|
| Cash and cash equivalent | 640,908,245 | 496,793,744 |
| Due from Nepal Rastra Bank | 1,637,092,771 | 1,843,840,864 |
| Placement with Bank and Financial Institutions | - | - |
| Derivative financial instruments | - | - |
| Other trading assets | - | - |
| Loan and advances to B/FIs | 84,505,836 | 72,527,733 |
| Loans and advances to customers | 2,384,497,096 | 2,380,130,618 |
| Investment securities | 484,171,264 | 473,179,956 |
| Current tax assets | 31,762,826 | 31,762,810 |
| Investment in susidiaries | - | - |
| Investment in associates | - | - |
| Investment property | 186,704,870 | 194,937,962 |
| Property and equipment | 111,003,493 | 107,364,513 |
| Goodwill and Intangible assets | 19,885,240 | 20,015,940 |
| Deferred tax assets | 52,833,821 | 52,215,325 |
| Other assets | 12,873,963 | 11,033,339 |
| Total Assets | 5,646,239,425 | 5,683,802,805 |
| Liabilities | ||
| Due to Bank and Financial Instituions | 71,678,581 | 76,613,405 |
| Due to Nepal Rastra Bank | - | - |
| Derivative financial instruments | - | - |
| Deposit from customers | 4,455,813,591 | 4,458,876,991 |
| Borrowing | - | - |
| Current Tax Liabilities | - | - |
| Provisions | - | - |
| Deferred tax liabilities | - | - |
| Other liabilities | 161,321,035 | 159,490,148 |
| Debt securities issued | - | - |
| Subordinated Liabilities | - | - |
| Total liabilities | 4,688,813,207 | 4,694,980,545 |
| Equity | ||
| Share Capital | 778,146,747 | 778,146,747 |
| Share premium | 51,100,367 | 51,100,367 |
| Retained earnings | (406,324,043) | (377,159,021) |
| Reserves | 534,503,147 | 536,734,167 |
| Total equity attributable to equity holders | 957,426,218 | 988,822,260 |
| Non-controlling interest | - | - |
| Total equity | 957,426,218 | 988,822,260 |
| Total liabilities and equity | 5,646,239,425 | 5,683,802,805 |
Condensed Statement of Profit or Loss
For the Quarter ended 31 Ashwin 2083 Amount in NPR
| Particulars | Current Year This Quarter | Current Year Upto This Quarter (YTD) | Previous Year Corresponding This Quarter | Previous Year Corresponding Upto This Quarter (YTD) |
|---|---|---|---|---|
| Interest income | 91,566,456 | 91,566,456 | 84,898,979 | 84,898,979 |
| Interest expense | 56,651,624 | 56,651,624 | 66,894,570 | 66,894,570 |
| Net interest income | 34,914,832 | 34,914,832 | 18,004,409 | 18,004,409 |
| Fee and commission income | 794,965 | 794,965 | 2,490,195 | 2,490,195 |
| Fee and commission expense | 16,943 | 16,943 | 29,438 | 29,438 |
| Net fee and commission income | 778,022 | 778,022 | 2,460,757 | 2,460,757 |
| Other operating income | 1,831,518 | 1,831,518 | 1,926,032 | 1,926,032 |
| Total Operating Income | 37,524,372 | 37,524,372 | 22,391,198 | 22,391,198 |
| Impairment Charges/(Reversal) for loan & other losses | 23,748,110 | 23,748,110 | 53,799,104 | 53,799,104 |
| Net operating income | 13,776,262 | 13,776,262 | (31,407,906) | (31,407,906) |
| Personnel expenses | 15,146,943 | 15,146,943 | 14,479,657 | 14,479,657 |
| Other operating expenses | 11,340,615 | 11,340,615 | 10,678,543 | 10,678,543 |
| Depreciation & Amortization | 2,090,846 | 2,090,846 | 2,993,976 | 2,993,976 |
| Operating Profit | (14,802,142) | (14,802,142) | (59,560,082) | (59,560,082) |
| Non operating income | - | - | - | - |
| Non operating expense | 15,150,744 | 15,150,744 | - | - |
| Profit before income tax | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
| Income tax expense | - | - | - | - |
| Current Tax | - | - | - | - |
| Deferred Tax | - | - | - | - |
| Profit/(Loss) for the period | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
Condensed Consolidated Statement of Comprehensive Income
| Profit or Loss for the period | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
| Other Comprehensive income/(Loss) | (1,443,156) | (1,443,156) | (12,908,935) | (12,908,935) |
| Total Comprehensive income for the period | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
| Basic earning per share | (3.85) | (7.84) | ||
| Diluted earning per share | (3.85) | (7.84) | ||
| Profit attributable to: | ||||
| Equity shareholder of the Company | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
| Non controlling Assets | - | - | - | - |
| Total | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
Ratios as per NRB Directives (Provisional)
Particulars Current Year Previous Year Corresponding
This Quarter Upto This Quarter (YTD) This Quarter Upto This Quarter (YTD)
Capital Fund to RWA 26.90% 28.27%
Tier 1 Capital to RWA 23.24% 24.70%
CET 1 Capital to RWA 23.24% 24.70%
Non performing loan (NPL) to Toal Loan 13.74% 13.10%
Net Non performing loan (NPL) to Total Loan 3.56% 4.00%
Total loan loss provision to Total NPL 84.69% 79.26%
Cost of Funds 4.79% 6.50%
Credit to Deposit Ratio 60.58% 66.59%
Base Rate 7.37% 8.90%
Interest Rate Spread 4.41% 4.57%
Return on Equity -3.08% -6.08%
Return on Assets -0.53% -1.15%
Statement of Distributable Profit/ (Loss)
| Particulars Upto This Quarter (YTD) Previous Year Corresponding Quarter End | ||
| Net profit or (loss) as per statement of profit or loss | (29,952,886) | (59,560,082) |
| Appropriations: | ||
| a. General reserve | - | - |
| b. Foreign exchange fluctuation fund | - | - |
| c. Capital redemption reserve | - | - |
| d. Corporate social responsibility fund | - | - |
| e. Employees' training fund | - | - |
| f. Other | - | - |
| Profit or (loss) before regulatory adjustment | (29,952,886) | (59,560,082) |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | (3,309,747) | (3,965,892) |
| 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 (+) | 4,097,610 | - |
| e. Deferred tax assets recognised (-)/ reversal (+) | - | - |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/resversal (+) | - | - |
| h. Actuarial loss recognised (-)/reversal (+) | - | - |
| i. Other | - | - |
| Net Profit for the Ashwin end 2083 | (29,165,023) | (63,525,974) |
| Opening Retained Earning as on Shrawan 1st 2083 | (377,159,021) | (269,084,147) |
| Adjustment (+/-) | - | - |
| Distribution: | ||
| Bonus shares issued | - | - |
| Cash Dividend Paid | - | - |
| Total Distributable profit or (loss) as on Qtr end Ashwin 2083 | (406,324,043) | (332,610,121) |
Notes to Financial Statement:
1. The above figures are subject to change as per the direction of the Regulators/External auditor.
2. The above financial have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) as issued by the Nepal accounting standard board after carve out issued by ICAN.
3. Previous year figures have been regrouped, rearranged, and reclassified wherever necessary.
4. Loans and advances is presented along with accrued interest & Staff loans and net of impairment charges.
5. Personnel Expenses included staff bonus as per Bonus Act 2030 (Amendment).
6. Detailed interim report has been published in Company's website (www.nepalfinance.com.np).
7. Impairment on credit exposures has been recognized in accordance with the existing regulatory provisions outlined in the Unified Directives, as these provisions resulted in a higher impairment amount compared to the Expected Credit Loss (ECL) calculated under Nepal Financial Reporting Standard (NFRS) 9. Interest income has been recognised in accordance with the Guidance Note on Interest Income Recognition, 2025 issued by Nepal Rastra Bank. For all financial assets other than old term loans, interest income has been calculated using the effective interest rate (EIR) method, applying the EIR to the gross carrying amount of financial assets that are not credit-impaired and to the amortised cost of financial assets that are credit-impaired. Where the contractual cash flows of a financial asset were renegotiated or otherwise modified without resulting in derecognition (a non-substantial modification), the gross carrying amount has been recalculated as the present value of the modified contractual cash flows discounted at the original EIR, and the resulting modification gain or loss has been recognised in profit or loss. No substantial modification/requiring derecognition of a financial asset occurred during the reporting period. For old term loans, interest income has been recognised on the gross carrying amount or the amortised cost, as applicable under the Guidance Note, by applying the deemed EIR. The Finance neither purchased nor originated any credit-impaired financial assets (POCI) during the reporting period.
धितोपत्र दर्ता तथा निष्काशन नियमावली २०७३ को नियम २६ को उपनियम (१) सँग सम्बन्धित
आ.व.२०८३/८४ को प्रथम त्रैमासिक प्रतिवेदन
१) वित्तीय विवरण :
क) प्रथम त्रैमासिक अवधिको वासलात, नाफा नोक्सान सम्बन्धी विवरण :
आ.व. २०८३/०८४ को प्रथम त्रैमासिक अवधिको अपरिष्कृत (Unaudited) वासलात तथा नाफा-नोक्सान सम्बन्धी विवरण यसै साथ प्रकाशित गरिएको छ र सो विवरण यस वित्तीय संस्थाको वेवसाईट www.nepalfinance.com.np मा पनि राखिएको छ ।
ख) प्रमुख वित्तीय अनुपातहरुः
प्रति शेयर आम्दानी (३.८५)
पि.ई अनुपात (१२१.४०)
प्रति शेयर नेटवर्थ १२३.०४
प्रति शेयर कुल सम्पत्तिको मूल्य ७२५.६०
तरलता अनुपात ५६.६७
२) व्यवस्थापकीय विश्लेषण :
क) संस्थाको प्रथम त्रैमासिक अवधिमा निक्षेप संकलनमा सामान्य वृद्धि तथा कर्जा लगानीमा समेत सामान्य वृद्धि भएको छ ।
ख) संस्थाको कर्जा तथा निक्षेप र प्राथमिक पूँजीको अनुपात साथै पर्याप्त तरलतालाई मध्यनजर गरी संस्थाको मुनाफामा वृद्धि गर्न कारोबार विस्तारलाई प्राथमिकतामा राख्ने रणनीतिक योजना व्यवस्थापनको रहेको छ । संस्थामा रहेको तरलतालाई मध्यनजर राखी कर्जा लगानी विस्तारमा थप सकारात्मकता साथ लागिपरेको व्यहोरा जानकारी गराईन्छ । यसका साथै संस्थाको खराब कर्जा असुलीलाई समेत प्राथमिकतामा राखी कार्य गर्नुपर्ने अवस्था छ र सोही बमोजिम कार्य सञ्चालन भइरहेको छ ।
ग) संस्थाको नगद मौज्दात, नाफा/नोक्सान वा नगद प्रवाहमा तात्लिक असर पार्न सक्ने कुनै खास घटना वा अवस्था हाल रहेको देखिँदैन ।
३) कानुनी कारवाही सम्बन्धी विवरण :
क) यस अवधिमा संस्थाले कर्जा असुलीका लागि भएका सामान्य कानुनी प्रक्रिया बाहेक संस्थाले वा संस्थाको विरुद्ध कुनै मुद्दा दायर भएको छैन ।
ख) यस अवधिमा संस्थाको संस्थापक वा संचालकले वा संस्थापक वा संचालकको विरुद्धमा प्रचलित नियमको अथवा वा फौजदारी वा आर्थिक अपराध गरेको सम्बन्धमा कुनै मुद्दा दायर भएको छैन ।
४) संगठित संस्थाको शेयर कारोबार सम्बन्धी विश्लेषण :
क) यस वित्तीय संस्थाको शेयर मूल्य धितोपत्र बजारको नीति नियम मुताबिक खुल्ला बजारले निर्धारण गर्ने गरेको र सोही अनुसार नै कारोबार हुने गरेको छ ।
ख) यस अवधिको शेयर कारोबार देहाय बमोजिम रहेको छ ।
शेयरको अधिकतम मूल्य ५६६.००
शेयरको न्यूनतम मूल्य ४६५.००
अन्तिम मूल्य ४६७.३०
कारोबार भएको कुल दिन ६१
कारोबार संख्या ४,१५९
कारोबार भएको शेयर संख्या ४०३,०२९
५) समस्या तथा चुनौती :
यस संस्थालाई नेपालको वित्तीय बजारमा एक सवल वित्तीय संस्थामा परिणत गर्न विद्यमान मानव संसाधन तथा अन्य साधनहरुको यथोचित व्यवस्थापन गरी कुशलतापूर्वक अघि बढ्नुपर्ने स्थिति रहेको छ । यसका लागि आइपर्ने समस्या तथा चुनौति समाधानका उपायहरुबारे संस्थाले समय-समयमा समीक्षा गरी रणनीति समेत बनाई सोको सहजीकरणको उपाय अवलम्बन गर्ने गरेको छ । साथै खराब कर्जा असुलीका लागि धितोमा रहेका सम्पत्ति लिलामी तथा गैर बैंकिङ्ग सम्पत्तिलाई यथासमयमै व्यवस्थापन गर्ने गरी कार्य सम्पादन भइरहेको अवस्था छ ।
६) संस्थागत सुशासन :
संस्थाले नेपाल राष्ट्र बैंक तथा अन्य नियमनकारी निकायहरुद्वारा जारी गरिएका संस्थागत सुशासन सम्बन्धी व्यवस्थाको पालना गरिएको छ । संस्थागत सुशासन अभिवृद्धिका लागि व्यवस्थापनद्वारा समय-समयमा संस्थाको कर्मचारीहरुलाई आन्तरिक र बाह्य प्रशिक्षण तथा तालिम गर्न गराउने गरिएको छ । संस्थागत सुशासन पालना सम्बन्धी क्रियाकलापको लेखाजोखा गर्न लेखापरीक्षण समिति लगायतका अन्य उप- समितिहरु गठन गरिएको छ । संस्थाको आन्तरिक लेखापरीक्षण नियमित रुपमा गर्ने गरिएको छ ।
७) सत्य, तथ्यता सम्बन्धमा कार्यकारी प्रमुखको उदघोषण :
आजका मितिसम्म यस प्रतिवेदनमा उल्लेखित जानकारी तथा विवरणहरुको शुद्धता सम्बन्धमा म व्यक्तिगत रुपमा उत्तरदायित्व लिन्छु । साथै म यो उदघोष गर्दछु कि मैले जाने बुझेसम्म यस प्रतिवेदनमा उल्लेखित विवरणहरु सत्य, तथ्य र पूर्ण छन् साथै, लगानीकर्ताहरुलाई सुसूचित निर्णय लिन आवश्यक कुनै विवरण, सूचना तथा जानकारीहरु लुकाइएको छैन ।
Nepal Finance Limited
Nepal Finance Limited
"Class 'C' Licensed Institution from Nepal Rastra Bank"
Unaudited Financial Results (Quarterly)
1st Quarter End of Fiscal Year 2083/84
Condensed Consolidated Statement of Financial Position (Provisional)
As on Quarter ended 31 Ashwin 2083 Amount in NPR
| Assets | This Quarter Ending | Immediate Previous Year Ending |
|---|---|---|
| Cash and cash equivalent | 640,908,245 | 496,793,744 |
| Due from Nepal Rastra Bank | 1,637,092,771 | 1,843,840,864 |
| Placement with Bank and Financial Institutions | - | - |
| Derivative financial instruments | - | - |
| Other trading assets | - | - |
| Loan and advances to B/FIs | 84,505,836 | 72,527,733 |
| Loans and advances to customers | 2,384,497,096 | 2,380,130,618 |
| Investment securities | 484,171,264 | 473,179,956 |
| Current tax assets | 31,762,826 | 31,762,810 |
| Investment in susidiaries | - | - |
| Investment in associates | - | - |
| Investment property | 186,704,870 | 194,937,962 |
| Property and equipment | 111,003,493 | 107,364,513 |
| Goodwill and Intangible assets | 19,885,240 | 20,015,940 |
| Deferred tax assets | 52,833,821 | 52,215,325 |
| Other assets | 12,873,963 | 11,033,339 |
| Total Assets | 5,646,239,425 | 5,683,802,805 |
| Liabilities | ||
| Due to Bank and Financial Instituions | 71,678,581 | 76,613,405 |
| Due to Nepal Rastra Bank | - | - |
| Derivative financial instruments | - | - |
| Deposit from customers | 4,455,813,591 | 4,458,876,991 |
| Borrowing | - | - |
| Current Tax Liabilities | - | - |
| Provisions | - | - |
| Deferred tax liabilities | - | - |
| Other liabilities | 161,321,035 | 159,490,148 |
| Debt securities issued | - | - |
| Subordinated Liabilities | - | - |
| Total liabilities | 4,688,813,207 | 4,694,980,545 |
| Equity | ||
| Share Capital | 778,146,747 | 778,146,747 |
| Share premium | 51,100,367 | 51,100,367 |
| Retained earnings | (406,324,043) | (377,159,021) |
| Reserves | 534,503,147 | 536,734,167 |
| Total equity attributable to equity holders | 957,426,218 | 988,822,260 |
| Non-controlling interest | - | - |
| Total equity | 957,426,218 | 988,822,260 |
| Total liabilities and equity | 5,646,239,425 | 5,683,802,805 |
Condensed Statement of Profit or Loss
For the Quarter ended 31 Ashwin 2083 Amount in NPR
| Particulars | Current Year This Quarter | Current Year Upto This Quarter (YTD) | Previous Year Corresponding This Quarter | Previous Year Corresponding Upto This Quarter (YTD) |
|---|---|---|---|---|
| Interest income | 91,566,456 | 91,566,456 | 84,898,979 | 84,898,979 |
| Interest expense | 56,651,624 | 56,651,624 | 66,894,570 | 66,894,570 |
| Net interest income | 34,914,832 | 34,914,832 | 18,004,409 | 18,004,409 |
| Fee and commission income | 794,965 | 794,965 | 2,490,195 | 2,490,195 |
| Fee and commission expense | 16,943 | 16,943 | 29,438 | 29,438 |
| Net fee and commission income | 778,022 | 778,022 | 2,460,757 | 2,460,757 |
| Other operating income | 1,831,518 | 1,831,518 | 1,926,032 | 1,926,032 |
| Total Operating Income | 37,524,372 | 37,524,372 | 22,391,198 | 22,391,198 |
| Impairment Charges/(Reversal) for loan & other losses | 23,748,110 | 23,748,110 | 53,799,104 | 53,799,104 |
| Net operating income | 13,776,262 | 13,776,262 | (31,407,906) | (31,407,906) |
| Personnel expenses | 15,146,943 | 15,146,943 | 14,479,657 | 14,479,657 |
| Other operating expenses | 11,340,615 | 11,340,615 | 10,678,543 | 10,678,543 |
| Depreciation & Amortization | 2,090,846 | 2,090,846 | 2,993,976 | 2,993,976 |
| Operating Profit | (14,802,142) | (14,802,142) | (59,560,082) | (59,560,082) |
| Non operating income | - | - | - | - |
| Non operating expense | 15,150,744 | 15,150,744 | - | - |
| Profit before income tax | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
| Income tax expense | - | - | - | - |
| Current Tax | - | - | - | - |
| Deferred Tax | - | - | - | - |
| Profit/(Loss) for the period | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
Condensed Consolidated Statement of Comprehensive Income
| Profit or Loss for the period | (29,952,886) | (29,952,886) | (59,560,082) | (59,560,082) |
| Other Comprehensive income/(Loss) | (1,443,156) | (1,443,156) | (12,908,935) | (12,908,935) |
| Total Comprehensive income for the period | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
| Basic earning per share | (3.85) | (7.84) | ||
| Diluted earning per share | (3.85) | (7.84) | ||
| Profit attributable to: | ||||
| Equity shareholder of the Company | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
| Non controlling Assets | - | - | - | - |
| Total | (31,396,042) | (31,396,042) | (72,469,017) | (72,469,017) |
Ratios as per NRB Directives (Provisional)
Particulars Current Year Previous Year Corresponding
This Quarter Upto This Quarter (YTD) This Quarter Upto This Quarter (YTD)
Capital Fund to RWA 26.90% 28.27%
Tier 1 Capital to RWA 23.24% 24.70%
CET 1 Capital to RWA 23.24% 24.70%
Non performing loan (NPL) to Toal Loan 13.74% 13.10%
Net Non performing loan (NPL) to Total Loan 3.56% 4.00%
Total loan loss provision to Total NPL 84.69% 79.26%
Cost of Funds 4.79% 6.50%
Credit to Deposit Ratio 60.58% 66.59%
Base Rate 7.37% 8.90%
Interest Rate Spread 4.41% 4.57%
Return on Equity -3.08% -6.08%
Return on Assets -0.53% -1.15%
Statement of Distributable Profit/ (Loss)
| Particulars Upto This Quarter (YTD) Previous Year Corresponding Quarter End | ||
| Net profit or (loss) as per statement of profit or loss | (29,952,886) | (59,560,082) |
| Appropriations: | ||
| a. General reserve | - | - |
| b. Foreign exchange fluctuation fund | - | - |
| c. Capital redemption reserve | - | - |
| d. Corporate social responsibility fund | - | - |
| e. Employees' training fund | - | - |
| f. Other | - | - |
| Profit or (loss) before regulatory adjustment | (29,952,886) | (59,560,082) |
| Regulatory adjustment : | ||
| a. Interest receivable (-)/previous accrued interest received (+) | (3,309,747) | (3,965,892) |
| 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 (+) | 4,097,610 | - |
| e. Deferred tax assets recognised (-)/ reversal (+) | - | - |
| f. Goodwill recognised (-)/ impairment of Goodwill (+) | - | - |
| g. Bargain purchase gain recognised (-)/resversal (+) | - | - |
| h. Actuarial loss recognised (-)/reversal (+) | - | - |
| i. Other | - | - |
| Net Profit for the Ashwin end 2083 | (29,165,023) | (63,525,974) |
| Opening Retained Earning as on Shrawan 1st 2083 | (377,159,021) | (269,084,147) |
| Adjustment (+/-) | - | - |
| Distribution: | ||
| Bonus shares issued | - | - |
| Cash Dividend Paid | - | - |
| Total Distributable profit or (loss) as on Qtr end Ashwin 2083 | (406,324,043) | (332,610,121) |
Notes to Financial Statement:
1. The above figures are subject to change as per the direction of the Regulators/External auditor.
2. The above financial have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) as issued by the Nepal accounting standard board after carve out issued by ICAN.
3. Previous year figures have been regrouped, rearranged, and reclassified wherever necessary.
4. Loans and advances is presented along with accrued interest & Staff loans and net of impairment charges.
5. Personnel Expenses included staff bonus as per Bonus Act 2030 (Amendment).
6. Detailed interim report has been published in Company's website (www.nepalfinance.com.np).
7. Impairment on credit exposures has been recognized in accordance with the existing regulatory provisions outlined in the Unified Directives, as these provisions resulted in a higher impairment amount compared to the Expected Credit Loss (ECL) calculated under Nepal Financial Reporting Standard (NFRS) 9. Interest income has been recognised in accordance with the Guidance Note on Interest Income Recognition, 2025 issued by Nepal Rastra Bank. For all financial assets other than old term loans, interest income has been calculated using the effective interest rate (EIR) method, applying the EIR to the gross carrying amount of financial assets that are not credit-impaired and to the amortised cost of financial assets that are credit-impaired. Where the contractual cash flows of a financial asset were renegotiated or otherwise modified without resulting in derecognition (a non-substantial modification), the gross carrying amount has been recalculated as the present value of the modified contractual cash flows discounted at the original EIR, and the resulting modification gain or loss has been recognised in profit or loss. No substantial modification/requiring derecognition of a financial asset occurred during the reporting period. For old term loans, interest income has been recognised on the gross carrying amount or the amortised cost, as applicable under the Guidance Note, by applying the deemed EIR. The Finance neither purchased nor originated any credit-impaired financial assets (POCI) during the reporting period.
First Quarterly Report Related to Rule 26 Sub-rule (1) of Securities Registration and Issue Regulations, 2073
First Quarterly Report of F.Y. 2083/84
1) Financial Statements :
a) Balance Sheet and Profit and Loss Statement for the First Quarter :
The unaudited Balance Sheet and Profit and Loss statement for the first quarter of F.Y. 2083/084 has been published herewith and the said statement is also posted on the website of this financial institution www.nepalfinance.com.np.
b) Major Financial Ratios:
Earnings Per Share (3.85)
P/E Ratio (121.40)
Net Worth Per Share 123.04
Total Asset Value Per Share 725.60
Liquidity Ratio 56.67
2) Management Analysis :
a) Deposit collection and loan investment of the institution during the first quarter period have shown normal growth.
b) Considering the institution's loan and deposit and primary capital ratio along with sufficient liquidity, the management has a strategic plan to prioritize business expansion to increase profitability. It is informed that the institution is committed with further positivity towards loan investment expansion keeping liquidity in mind. Along with this, there is also a situation where recovery of bad loans of the institution needs to be prioritized, and work is being carried out accordingly.
c) Currently, no specific event or condition is observed that could have an immediate impact on the cash balance, profit/loss, or cash flow of the institution.
3) Statement Regarding Legal Proceedings :
a) Except for general legal procedures initiated for loan recovery during this period, no lawsuit has been filed by or against the institution.
b) During this period, no case has been filed regarding any violation of prevailing laws, criminal offenses, or economic crimes against the promoters or directors of the institution.
4) Analysis of Share Transactions of the Corporate Body :
a) The share price of this financial institution is determined by the open market according to the rules and regulations of the stock market and transactions take place accordingly.
b) Share transactions during this period were as follows.
Maximum Share Price 566.00
Minimum Share Price 465.00
Closing Price 467.30
Total Days Traded 61
Number of Transactions 4,159
Number of Shares Traded 403,029
5) Problems and Challenges :
To transform this institution into a strong financial institution in Nepal's financial market, there is a situation where existing human resources and other resources must be properly managed to move forward efficiently. For this, the institution reviews the problems and challenges from time to time, formulates strategies, and adopts measures to facilitate them. Likewise, for the recovery of bad loans, actions are being carried out to manage mortgaged assets through auction and non-banking assets in a timely manner.
6) Corporate Governance :
The institution has complied with the provisions related to corporate governance issued by Nepal Rastra Bank and other regulatory bodies. To enhance corporate governance, the management organizes internal and external training for employees from time to time. Committees including an Audit Committee have been formed to evaluate activities related to corporate governance compliance. Internal audit of the institution is conducted regularly.
7) Disclosure of the Chief Executive Officer Regarding Truth and Accuracy :
I personally take responsibility for the accuracy of the information and details mentioned in this report till today's date. Also, I declare that to the best of my knowledge, the details mentioned in this report are true, factual, and complete; further, no details, notice, or information necessary for investors to make informed decisions have been hidden.