Nepal Finance's Net Profit Declines Due to Tax Burden

Nepal Finance Limited (NFS) has recently published its unaudited financial report for the fourth quarter of fiscal year 2081. According to the report, the finance company has experienced a decline in net profit compared to the previous fiscal year.

Key Financial Highlights:

• Net Profit: By the end of fiscal year 2081, the finance company has earned a net profit of NPR 18.1 million, which is a 10.01% decrease compared to the same period last year, when the profit was NPR 20.1 million.

• Net Interest Income: The company's net interest income increased by 19.86%, reaching NPR 11.075 million, showing some improvement in the company's overall income.

• Fee and Commission Income: The finance company's net fee and commission income saw a significant increase of 77.92%, reaching NPR 1.278 million, strengthening other income sources for the company.

• Operating Income: The total operating income of the finance company increased by 34.92%, while operating profit rose by 10.03%.

• Non-Performing Loans (NPLs): During the review period, the finance company's NPLs decreased from 12.16% to 9.11%, indicating an improvement in loan management.

Financial Position and Future Challenges:

• During the review period, the company's earnings per share (EPS) decreased from NPR 2.77 to NPR 2.48. Additionally, the company's distributable profit stands at a negative NPR 208.2 million, which could affect its dividend-paying capacity.

Overall:

Nepal Finance, despite improvements in interest income and operating profit during the fourth quarter of fiscal year 2081, has seen a decline in net profit due to the tax burden. However, the reduction in non-performing loans and the increase in operating income suggest a stronger financial position. Moving forward, the finance company will need to adopt further plans and strategies to improve its financial performance.