Nepal Finance Net Profit Drops by 47.13% in FY 2079-80
Sat, Aug 5, 2023 12:21 PM on Latest, Financial Analysis,
Nepal Finance Limited (NFS) has released its financial report for the fourth quarter of the recently concluded fiscal year 2079-80, indicating a significant decrease of 47.13 percent in its Net Profit. The company's earnings stood at only Rs. 2.56 crores during FY 2079-80, in contrast to Rs. 4.88 crores in the corresponding quarter of FY 2078-79.
Despite an encouraging 18.42 percent increase in Net Interest Income, NFS faced a substantial decline of 85.61 percent in Operating Profit. The company's total revenue and Operating Profit for FY 2079-80 were Rs. 9.14 crores and Rs. 39.78 lakhs, respectively.
NFS managed to improve its Non-Performing Loan (NPL) situation, but the NPL ratio remained relatively high at 12.16 percent by the end of FY 2079-80.
The company's Earnings per Share (EPS) ratio stands at Rs. 3.53, while the Net Worth per Share is Rs. 137.04.
NFS maintains a paid-up capital of Rs. 72.75 crores and holds Rs. 26.94 crores in reserves and surplus.
Major Financial Highlights:
| Particulars (In Rs '000) | Nepal Finance Limited | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 727,548.00 | 725,472.00 | 0.29% |
| Share Premium | 51,039.00 | 51,039.00 | 0.00% |
| Retained Earnings | -210,330.00 | -255,113.00 | - |
| Reserves | 428,773.00 | 442,154.00 | -3.03% |
| Deposits | 1,653,280.00 | 1,474,202.00 | 12.15% |
| Loans & Advances to Banks and FIs | 76,337.00 | 226,253.00 | -66.26% |
| Loans & Advances to Customers | 1,295,137.00 | 980,657.00 | 32.07% |
| Net Interest Income | 91,454.00 | 77,231.00 | 18.42% |
| Personnel Expenses | 54,288.00 | 51,785.00 | 4.83% |
| Write Back | 25,039.00 | 40,142.00 | -37.62% |
| Operating Profit | 3,978.50 | 27,650.58 | -85.61% |
| Net Profit | 25,681.00 | 48,577.00 | -47.13% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments (4th Quarter) | -210,330.00 | - | - |
| Capital Adequacy (%) | 42.62 | 43.29 | -1.55% |
| NPL (%) | 12.16 | 14.07 | -13.57% |
| Cost of Fund (%) | 9.88 | 8.92 | 10.76% |
| EPS (In Rs.) | 3.53 | 6.70 | -47.28% |
| Base Rate (%) | 14.37 | 14.66 | -1.98% |
| Interest Rate Spread | 4.57 | 4.88 | -6.35% |
| Net Worth per Share (In Rs.) | 137.04 | 203.15 | -32.54% |
| Qtr End Market Price | 351 | - | - |
