आइ.सि.एफ.सि. फाइनान्स लिमिटेडको चौथो त्रैमासिक वित्तीय विवरण (आ.व. २०८२/८३)ICFC Finance Limited: Q4 Unaudited Financial Results (F.Y. 2082/83)

आइ.सि.एफ.सि. फाइनान्स लिमिटेड ICFC FINANCE LIMITED

Unaudited Financial Results (Quarterly)

Condensed Statement of Financial Position

As on Quarter ended Ashad 2083

Amount in NPR

ASSETS This Quarter Ending Immediate Previous Year Ending

Cash and cash equivalent	834,694,269	1,183,686,629
Due from Nepal Rastra Bank	2,682,706,535	1,356,967,829
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loans and advances to B/Fs	555,565,631	624,536,796
Loans and advances to customers	18,695,686,952	16,859,157,292
Investment securities	2,914,622,455	3,091,101,979
Current tax assets	4,757,928	11,259,065
Investment in subsidiaries	-	-
Investment in associates	-	-
Investment property	43,817,026	17,995,287
Property Plant and Equipment	323,647,083	354,231,917
Goodwill and Intangible assets	3,950,525	5,572,595
Deferred tax assets	3,286,913	-
Other assets	124,780,573	124,947,284
TOTAL ASSETS	26,187,515,890	23,629,456,673

LIABILITIES This Quarter Ending Immediate Previous Year Ending

Due to Bank and Financial Institutions	298,349,671	266,654,173
Due to Nepal Rastra Bank	204,209,672	404,250,000
Derivative financial instruments	-	-
Deposits from customers	22,232,744,964	19,990,292,732
Borrowing	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred tax liabilities	-	2,134,382
Other liabilities	214,344,602	292,286,071
Debt securities issued	997,288,339	498,831,491
Subordinated Liabilities	-	-
TOTAL LIABILITIES	23,946,937,248	21,454,448,849

EQUITY This Quarter Ending Immediate Previous Year Ending

Share Capital	1,183,470,960	1,183,470,960
Share premium	-	-
Retained Earnings	141,732,426	218,670,200
Reserves	915,375,256	772,866,664
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS	2,240,578,642	2,175,007,824
NON-CONTROLLING INTEREST	-	-
TOTAL EQUITY	2,240,578,642	2,175,007,824
TOTAL LIABILITIES & EQUITY	26,187,515,890	23,629,456,673

STATEMENT OF DISTRIBUTABLE PROFIT OR LOSS

For the Quarter ended Ashad 2083

(As per NRB Regulation)

Amount in NPR

Particular Ashad End 2083

Net profit or (loss) as per statement of profit or loss 264,224,940

Appropriations:

a. General reserve (52,844,988)

b. Foreign exchange fluctuation fund -

c. Debenture redemption reserve (85,000,000)

d. Corporate social responsibility fund (2,642,249)

e. Employees' training fund (272,027)

f. Other -

Transfer to investment adjustment reserve -

Transfer from contingency reserve and deferred tax reserve -

Transfer from CSR fund 2,302,364

Profit or (loss) before regulatory adjustment 125,768,040

Regulatory adjustment :

a. Interest receivable (-)/previous accrued interest received (+) 95,910

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 (+) (12,851,479)

e. Deferred tax assets recognised (-)/reversal (+) (317,877)

f. Goodwill recognised (-)/ impairment of Goodwill (+) -

g. Bargain purchase gain recognised (-)/reversal (+) -

h. Actuarial loss recognised (-)/reversal (+) (2,886,221)

i. Other (+/-) -

Net Profit for the year ended Ashad 2083 available for distribution 109,808,373

Opening retained earning 218,670,200

Less: Dividend distributed 186,864,147

Less: Bonus Share issued -

Less: Share issue expenses -

Add: Gain from sale of investment securities measured at fair value through OCI -

Add/(Less) : Profit and Loss Adjustment 118,000

Remaining balance of Retained Earnings 31,924,053

Distributable Profit or (Loss) 141,732,426

Distributable Profit or (Loss) per Share 11.98

Notes:

१. Figures presented above may vary with the audited figures as per the instruction or requirement of the banking regulator and/or statutory auditor.

२. Above financial have been prepared in according with NRB Directive No 4 and applicable Nepal Financial Reporting Standard (NFRS) by applying certain carve-out in NFRS as issued by The Institution of Chartered Accountants of Nepal (ICAN).

३. Impairment on credit exposures has been recognized in accordance with Nepal Rastra Bank existing regulatory provisions outlined in the Unified Directives 2082, as these provisions resulted in a higher impairment amount compared to the Expected Credit Loss(ECL) calculated under Nepal Financial Reporting Standard (NFRS 9)

४. Interest Income on Loan & Advances has been recognized as per Guidance Note on Interest Income Recognition, 2025 issued by Nepal Rastra Bank.

५. Loans and advances are presented along with staff loans and net of impairment charges

६. Investments are recognized at their fair value i.e. after charging impairment charge or fair value gain as per their classification.

७. Personnel expenses includes provision for staff bonus which has been calculated as per provision of Bonus Act.

८. A detailed interim financial report has been published in the financial institution's website www.icfc.com.np

९. Figures are regrouped and reclassified wherever appropriate for fair presentation.

Condensed Statement of Profit or Loss

For the Quarter ended Ashad 2083

Amount in NPR

Particular Current Year This Quarter Current Year Up to This Quarter (YTD) Previous Year This Quarter Previous Year Up to This Quarter (YTD)

Interest income	473,328,554	1,803,299,712	499,696,223	1,916,073,877
Interest expense	281,082,070	1,157,878,692	326,614,489	1,321,710,846
Net interest income	192,246,484	645,421,020	173,081,734	594,363,031
Fee and commission income	39,754,924	120,085,142	55,220,138	126,547,119
Fee and commission expense	3,899,319	9,564,754	1,019,080	3,233,053
Net fee and commission income	35,855,605	110,520,388	54,201,058	123,314,066
Net interest, fee and commission income	228,102,089	755,941,408	227,282,792	717,677,097
Net trading income/(expenses)	-	-	-	-
Other operating income	11,642,142	50,998,088	5,032,750	93,650,652
Total operating income	239,744,231	806,939,496	232,315,542	811,327,749
Impairment charge/(reversal) for loans and other losses	(107,402,134)	23,201,598	(71,290,226)	(56,592,212)
Net operating income	347,146,365	783,737,898	303,605,768	867,919,961

Operating expense

Personnel expenses	88,022,326	285,906,234	76,701,980	262,871,084
Other operating expenses	1,788,604	77,552,586	4,203,863	83,746,712
Depreciation & Amortization	30,693,246	45,163,579	26,611,507	46,509,292
Operating Profit	226,642,189	375,115,499	196,088,418	474,792,873
Non operating income	-	94,990	64,947	64,947
Non operating expense	290,632	1,541,754	-	-
Profit before income tax	226,351,557	373,668,735	196,153,365	474,857,820

Income tax expense

Current Tax expenses	61,749,650	109,761,672	56,673,415	143,035,371
Deferred Tax Expenses/(Income)	3,498,991	(317,877)	1,493,089	(1,257,531)
Profit for the period	161,102,915	264,224,940	137,986,861	333,079,980

Profit attributable to:

Equity holders of the finance	161,102,915	264,224,940	137,986,861	333,079,980
Non-controlling interest	-	-	-	-
Profit for the period	161,102,915	264,224,940	137,986,861	333,079,980
Other comprehensive income	(10,706,824)	(11,907,975)	11,897,534	(1,833,666)
Total comprehensive income for the period	150,396,091	252,316,965	149,884,395	331,246,314

Earnings per share

Basic earnings per share	-	22.33	-	28.14
Annualized Basic earnings per share	-	22.33	-	28.14
Diluted earnings per share	-	22.33	-	28.14

Total comprehensive income attributable to:

Equity holders of the finance	150,396,091	252,316,965	149,884,395	331,246,314
Non-controlling interest	-	-	-	-
Total comprehensive income	150,396,091	252,316,965	149,884,395	331,246,314

Ratios as per NRB Directive

For the Quarter ended Ashad 2083

Particulars Current year This Quarter Current year Up to This Quarter (YTD) Previous year This Quarter Previous year Up to This Quarter (YTD)

Capital fund to RWA - 14.38% - 14.05%

Tier 1 Capital to RWA - 9.47% - 10.77%

Non-performing loan (NPL) to total loan	-	-
Total loan loss provision to Total NPL	-	-
Cost of Funds	-	-
Credit to Deposit Ratio	-	-
Base Rate	-	-
Interest Rate Spread	-	-
Return on Equity	-	-
Return on Asset	-	-

Securities Registration and Issue Regulation, 2073

Related to (Rule 26(1), Annexure 14), for the Fourth Quarter of F.Y. 2082/83

1. Financial Statements as per unaudited figures of 2083.03.32

i. Financial details as of the end of the Fourth Quarter (2083.03.32) of FY 2082/83 have been published along with this disclosure.

ii. Major Financial Indicators

Earnings per share (Rs.) 22.33 Market Value Per Share (Rs.) 589

Price Earnings Ratio (times)	26.38	189.32
Total Assets/No. of Shares (Rs.)	2,212.77	25.57

2. Management Analysis

a) Details relating to the change in the FI's reserve, income, and liquidity in the quarter (if any) and its main reason.

The income for the current period has marginally declined compared to the corresponding period of the previous year, primarily due to lower business momentum, reduced yields, and the non-recognition of interest income from Stage 3 (non-performing) loans. Furthermore, returns from non-interest income and investments have decreased, influenced by ongoing political instability and various economic movements affecting the overall national economy. Despite these challenges, the company remains focused on enhancing portfolio quality and optimizing overall returns. However, the Non-Performing Loan (NPL) ratio has increased compared to the previous quarter.

In terms of liquidity, the finance remains well-positioned with ample funds available for lending's. The market continues to have high liquidity levels and overall lending rates are gradually declining in line with reduced base rates. The ALCO is actively managing its interest rate and liquidity risks through prudent practices and aims to maintain stable and sustainable performance moving forward.

b) Management's analytical details regarding future business plan:

ICFC Finance Ltd has laid out a strategic business plan aimed at achieving sustainable and balance growth. The company aims to improve financial performance, deliver value to shareholders, and support inclusive financial access across its service areas.

c) Analytical details of the incidents that may have a major impact on reserve, profit, or cash flow (if any) based on previous experience:

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

3. Legal Proceedings

a) Case filed by or against the FI in this quarter.

Except in the regular course of business, there are no lawsuits filed against the FI in this quarter.

b) Case relating to disobedience of prevailing law or commission of criminal offense filed by or against the promoter or Director of the FI:

No such information has been received.

c) Case relating to the commission of financial crime filed against any promoter or Director of the FI:

No such information has been received.

4. Analysis of Stock Performance of the FI

a) Management view on the transaction of the shares to the FI in the Share Market:

Transaction of the shares and share price are determined by the open market at Nepal Stock Exchange Ltd.

b) Maximum, minimum, and last share price, total transaction days, and total transacted number of shares in the quarter (as per nepalstock.com)

Maximum share price (Rs.) 658 Minimum share price (Rs.) 580

Closing share price (Rs.) 589 Total no. of transactions 4,084

No. of days of the transaction 64 Total traded no. of shares 589,321

5. Problem and Challenges

Internal

a. Rising operational Costs

b. Dependence on interest income

c. Retention of skilled and experienced human resources.

d. Maintaining adequate Capital Adequacy.

External

a. Increasing trend of cyber frauds and operational risks

b. Economic Slowdowns

c. Low credit demand

d. Intense market competition

e. Non-compliance with evolving regulations

6. Strategy to overcome the problems and challenges

a. Development and introduction of customer-oriented products/services.

b. Strong risk management approach and portfolio diversification.

c. Identification of new business opportunities.

d. Focus on the development of staff by training, counseling, and monitoring them.

e. Strengthen IT security and conduct regular audits

f. Improve service quality and leverage digital platforms to stay competitive.

7. Corporate Governance

The FI has been complying with the directives, and guidelines issued by Nepal Rastra Bank regarding corporate governance. To ensure that the prevalent laws and rules are followed, the FI has developed policies and working procedures. Clear authorities have been developed to guide the function of management, to ensure the same complies with the corporate governance requirement. The board of directors, audit committee, risk management committee, recruitment committee, and management committee are committed to strengthening good corporate governance within the FI.

8. Declaration

I, CEO of the FI, hereby declare that all the information provided in this document is true, complete, and factual and that I take personal responsibility for any deviation thereof. I also declare that the FI's information or data that assists investors make their investment decisions have not been concealed in any way.