श्री इन्भेष्टमेन्ट एण्ड फाइनान्सको प्रथम त्रैमासिक वित्तीय विवरणShree Investment and Finance: 1st Quarter Financial Statement

Condensed Consolidated Statement of Financial Position

As on Quarter ended Ashoj 2083 (October 17, 2026)

Amount in NPR

Particulars	This Quarter Ending	Immediate Previous Year Ending
ASSETS
Cash and cash equivalent	591,116,601	1,176,180,637
Due from Nepal Rastra Bank	1,223,577,176	719,842,090
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loans and advances to B/Fis	297,665,280	297,650,430
Loans and advances to customers	5,892,819,089	5,874,216,463
Investment securities	2,304,975,155	2,164,904,361
Current tax assets	47,487,625	55,909,041
Investment in subsidiaries	-	-
Investment in associates	-	-
Investment property	14,602,600	14,602,600
Property, Plant and Equipment	119,589,069	122,079,780
Goodwill and Intangible assets	2,743,815	1,993,449
Deferred tax assets	-	-
Other assets	20,004,828	19,338,107
TOTAL ASSETS	10,514,581,238	10,446,716,959
LIABILITIES
Due to Bank and Financial Institutions	328,091,833	327,812,838
Due to Nepal Rastra Bank	60,000,000	110,000,000
Derivative financial instruments	-	-
Deposits from customers	8,616,193,633	8,462,851,839
Borrowing	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred tax liabilities	15,325,944	16,153,571
Other liabilities	79,036,850	131,684,794
Debt securities issued	-	-
Subordinated Liabilities	-	-
TOTAL LIABILITIES	9,098,648,260	9,048,503,042
EQUITY
Share Capital	1,000,000,000	1,000,000,000
Share Premium	-	-
Retained Earnings	46,136,933	40,283,737
Reserves	369,796,046	357,930,179
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS	1,415,932,978	1,398,213,916
NON-CONTROLLING INTEREST	-	-
TOTAL EQUITY	1,415,932,978	1,398,213,916
TOTAL LIABILITIES & EQUITY	10,514,581,238	10,446,716,959

Statement of Distributable Profit or Loss

For the Quarter Ended 31 Ashoj 2083

(As Per NRB Regulation)

Amount in NPR

Particulars Current Year Upto this Quarter YTD Previous Year Corresponding Quarter YTD
Net profit or (loss) as per statement of profit or loss	19,650,193	3,443,793
Appropriations:
a. General reserve	(3,930,039)	(688,759)
b. Foreign exchange fluctuation fund	-	-
c. Capital redemption reserve	-	-
d. Corporate social responsibility fund	(196,502)	(10,098)
e. Employee's training fund	(579,597)	(499,706)
f. Other	-	-
Profit or (loss) before regulatory adjustment	14,944,056	2,245,231
Regulatory Adjustment:
a. Interest receivable (-)/previous accured interest received (+)	(9,090,860)	(700,688)
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 recognised (-)/reversal (+)	-	-
f. Goodwill recognised (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognised (-)/reversal (+)	-	-
h. Actuarial loss recognised (-)/reversal (+)	-	-
i. Other	-	-
Net Profit for the Quarter end available for distribution	5,853,196	1,544,543
Opening retained earning	40,283,737	62,800,232
Adjustment(+/-)	-	-
Distribution:
Bonus shares issued	-	-
Cash Dividend Paid	-	-
Total Distributable profit or (loss) as on Quarter end date	46,136,933	64,344,775
Annualised Distributable Profit/Loss per share	4.61	6.43

Ratios as per NRB Directive

Particulars Current year This quarter Current year Upto this quarter (YTD) Previous year This quarter Previous year Upto this quarter (YTD)

Capital fund to RWA 19.30% 18.50%

Non-performing loan (NPL) to total loan 3.18% 3.34%

Total loan loss provision to Total NPL 114.33% 97.77%

Cost of Funds 4.63% 6.23%

Credit to Deposit Ratio 71.02% 79.60%

Base Rate 6.08% 7.96%

Interest Rate Spread 3.63% 3.96%

Tier 1 Capital to RWA 18.12% 17.57%

Return on Equity 5.56% 0.99%

Return on Assets 0.77% 0.14%

Securities Registration and Issue Regulation 2073, Related to (Rule-26 (1), Annexure-14) for the First Quarter Report, of FY 2083/84

Amount 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	155,911,420	155,911,420	196,358,534	196,358,534
Interest expense	103,951,609	103,951,609	131,009,097	131,009,097
Net interest income	51,959,812	51,959,812	65,349,438	65,349,438
Fee and commission income	3,974,370	3,974,370	5,644,013	5,644,013
Fee and commission expense	11,860	11,860	21,861	21,861
Net fee and commission income	3,962,510	3,962,510	5,622,152	5,622,152
Net interest, fee and commission income	55,922,321	55,922,321	70,971,590	70,971,590
Net other comprehensive income that will not be reclassified to profit or loss	-	-	-	-
Other operating income	935,128	935,128	2,338,664	2,338,664
Total operating income	56,857,450	56,857,450	73,310,253	73,310,253
Impairment charge/(reversal) for loans and other losses	(7,933,296)	(7,933,296)	34,976,462	34,976,462
Net operating income	64,790,745	64,790,745	38,333,791	38,333,791
Operating expenses	-	-	-	-
Personnel expenses	21,818,825	21,818,825	19,866,529	19,866,529
Other operating expenses	13,153,687	13,153,687	11,699,740	11,699,740
Depreciation & Amortization	1,746,529	1,746,529	1,847,817	1,847,817
Operating Profit	28,071,704	28,071,704	4,919,705	4,919,705
Non operating income	-	-	-	-
Non operating expense	-	-	-	-
Profit before income tax	28,071,704	28,071,704	4,919,705	4,919,705
Income tax expense	-	-	-	-
Current Tax expenses	8,421,511	8,421,511	1,475,911	1,475,911
Deferred Tax Expenses/(Income)	-	-	-	-
Profit for the period	19,650,193	19,650,193	3,443,793	3,443,793
Other Comprehensive income	(1,931,131)	(1,931,131)	(18,016,008)	(18,016,008)
Total Comprehensive Income	17,719,062	17,719,062	(14,572,214)	(14,572,214)
Basic earnings per share	-	7.86	-	1.38
Diluted earnings per share	-	7.86	-	1.38
Total Comprehensive income attributable to:	-	-	-	-
Equity holders of the company	17,719,062	17,719,062	(14,572,214)	(14,572,214)
Non controlling interest	-	-	-	-
Total	17,719,062	17,719,062	(14,572,214)	(14,572,214)

Notes to Interim Financial Results

1 The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) in line with NRB Directives. In compliance with NRB's Expected Credit Loss Guidelines, finance has de-recognised interest income on loan and advances classified as life time ECL under stage 3. Finance has calculated the expected credit loss figure under ECL guidelines, which is lower than the provision calculated as per Unified Directives. The finance has considered the provision as prescribed by Unified Directives. The Finance has considered the impact of effective interest rate as not significant for the period of first quarter 2083/84 and will assess its impact on subsequent quarter of FY 2083/84.

2 Loan and advances include interest receivable on loans and are presented net of loan impairments.

3 The figures are subject to change if directed by NRB or external auditors.

4 Figures are regrouped where necessary.

5 There are no related party transactions with related parties apart from BOD allowance to BOD members, salary and allowances to CEO.

6 The above unaudited interim financial statements has been updated in the Company's website: www.shreefinance.com.np

1. Financial Statement:

Statement of Financial Position and Statement of Profit or Loss as per Nepal Financial Reporting Standards (NFRS) including key financial indicators and ratios are presented along with this report. There has been no transaction between related parties.

Key Financial Indicators and Ratios:

Earnings Per Share (NPR) 7.86

Price Earnings Ratio (Times) 59.41

Net worth per Share (NPR) 141.59

Total Assets Per share (NPR) 1,051.46

Liquidity Ratio (%) 42.69

2. Management Analysis

• Management is continuously focused on strengthening the balance sheet, diversifying the portfolio to meet the evolving needs of economy, pursuing sustainable growth, investing in high-quality assets, ensuring business continuity, optimizing resource utilization and further improving management practice and workplace efficiency.

• This national-level financial institution has been providing services through its central office along with 13 branch offices. In the coming days, the institution's management is committed to enhance the quality of services, formulating and implementing timely business plans, exploring new investment areas, establishing new branches and offering modern banking and financial services and facilities in line with business diversification and customer needs. Digital banking has been prioritized.

• No specific incident occurred during the period that could have impact on reserve, profit or cash flow.

3. Details related to Legal Proceedings

• During this quarterly period, the financial institution has not filed any lawsuits against anyone, nor has it received any notices of lawsuits filed against it.

• No lawsuits have been filed against the institution's promoters or directors, nor have they been accused of violating applicable regulations or committing criminal offenses.

• No lawsuits have been filed against any promoter or director in connection with financial crimes.

4. Analysis of Stock Performance of FI

• Share price and transaction are determined as per open market competition.

• Maximum, minimum and closing share price including total share transaction number and days of transaction during the period were: (Source: Website of Nepal Stock Exchange)

Maximum price (NPR) :	540.70	450.00
Closing price (NPR) :	467.00	457,748

Total no. of transactions : 2,350 No. of transaction days : 61

5. Problems and Challenges

Internal:

• Skill and experienced human resources retention.

• Management of non-performing loans and NBA.

• Challenges of improving non-interest revenue.

• Challenges of mobilizing excess liquidity.

• Increasing Operating Cost.

External:

• Intense market competition.

• Low credit demand and slowdown in the economy.

• Increasing cyber security and digital risk.

• Geopolitical tensions and ongoing international conflicts pose a signification threat to economic stability.

6. Corporate Governance

The FI's prioritizes adherence to corporate governance guidelines issued by the Nepal Rastra Bank and other regulatory authorities. The Board of Directors, Audit Committee and management are committed to strengthen good corporate governance practices in the company. Additionally, internal policies have been formulated and enforced to ensure orderly business conduct.

7. Declaration by CEO

As of this date, I hereby accept responsibility for the accuracy of the information and details provided in this report. I further declare that, to the best of my knowledge and belief, the contents of this report are true, accurate, complete, and that no material information relevant to investors has been concealed.