Hulas Finserv Reports 84.45% Surge in Net Profit to Rs. 398.72 Million

Hulas Finserv Hire Purchase Limited (HFL) has reported a strong financial performance for Fiscal Year 2082/83 (2025/26), with net profit rising 84.45% to Rs. 398.72 million, up from Rs. 216.17 million in the corresponding period of the previous fiscal year.

The company’s performance was supported by significant growth in its loan portfolio, improved asset quality, higher interest income and better operational efficiency.

HFL’s total loan portfolio grew 52.25% year-on-year to Rs. 12.22 billion, driven primarily by growth in automobile financing. At the same time, the company improved its asset quality, reducing its Non-Performing Loan (NPL) ratio from 3.40% to 1.87%.

The company’s total assets increased to Rs. 12.64 billion, compared with Rs. 8.43 billion a year earlier. Total equity also rose to Rs. 1.89 billion from Rs. 1.49 billion.

Hulas Finserv recorded net interest income of Rs. 484.65 million, more than double the Rs. 221.01 million reported in the previous year. Similarly, operating profit increased to Rs. 614.68 million, compared with Rs. 335.28 million a year earlier.

The company’s annualized return on equity (ROE) improved to 21.12% from 14.52%, while annualized basic earnings per share (EPS) increased to Rs. 48.04 from Rs. 26.04.

HFL also reported improvements in its funding and interest-rate spreads. Its cost of funds declined to 5.77% from 6.40%, while the interest-rate spread increased to 3.39% from 1.98%. Loan-loss provision coverage strengthened to 92.34%.

According to the company, the improved results were achieved despite challenging operating conditions, including subdued private-sector credit growth and asset-quality concerns across Nepal’s financial sector.

Hulas Finserv attributed its performance to business expansion, operational efficiency, prudent risk management and focused recovery efforts.

Going forward, the company said it will prioritize sustainable portfolio growth while further strengthening asset quality, recovery mechanisms and portfolio diversification, with a focus on protecting long-term stakeholder value.