Progressive Finance Financial Performance Q2 2082/83
29th January 2026, Kathmandu
Progressive Finance Limited has navigated a difficult second quarter of the fiscal year 2082 2083 characterized by a transition in its overall profitability and a sharp focus on asset quality management. According to the condensed consolidated interim financial statements for the period ending on the 30th of Poush 2082 the company reported a net profit of 9.83 million rupees for the quarter.
Progressive Finance Financial Performance
However on a year to date basis the company recorded a net loss of 29.25 million rupees. This cumulative loss reflects the broader challenges facing the finance sector in Nepal including tight liquidity and high impairment charges associated with legacy loan portfolios.
Revenue Trends and Interest Margins
The core revenue engine for the institution showed signs of recovery during the review period. Interest income for the second quarter stood at 127.49 million rupees contributing to a cumulative half year total of 269.72 million rupees. After accounting for interest expenses of 177.95 million rupees year to date the company reported a net interest income of 91.77 million rupees. The net interest margin remains a critical metric for the institution as it works to balance the cost of funds which was reported at 4.70 percent against its lending yields.
The company has also focused on diversifying its income through service based activities. Net fee and commission income reached 6.33 million rupees for the quarter and 12.93 million rupees cumulatively. While these non interest income streams are modest they represent an important secondary revenue source as the company seeks to reduce its dependency on traditional interest spreads. Total operating income for the half year was recorded at 123.81 million rupees.
Operating Expenses and Provisioning
Operational efficiency remains a primary area of management focus. Personnel expenses for the second quarter were 30.59 million rupees contributing to a year to date total of 61.77 million rupees. Despite these overheads the company reported an operating profit of 9.83 million rupees for the quarter though the cumulative year to date operating figure remained at a loss of 30.45 million rupees.
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The major driver of the cumulative net loss has been the significant allocation for impairment charges. For the first half of the year the company set aside 40.09 million rupees for potential loan and other losses. These impairment charges are a direct result of the banks efforts to maintain a prudent risk profile in a volatile economic environment. The non performing loan ratio was reported at 7.39 percent which marks a slight improvement from the 7.57 percent recorded in the corresponding period of the previous year.
Balance Sheet Strength and Capital Adequacy
The balance sheet of Progressive Finance remains stable with total assets standing at 8.47 billion rupees. Customer deposits grew to 7.53 billion rupees reflecting sustained depositor confidence. On the asset side loans and advances to customers reached 5.08 billion rupees. The credit to deposit ratio was recorded at 70.33 percent which is well within the regulatory limits set by Nepal Rastra Bank and provides the company with ample room to expand its lending as market conditions stabilize.
The capital position of the institution remains firm. The paid up capital stands at 848.11 million rupees while total equity attributable to holders is 626.99 million rupees. The capital fund to risk weighted assets ratio was reported at 11.17 percent exceeding the minimum regulatory requirement. However the retained earnings remained negative at 468.70 million rupees as of the end of Poush 2082 due to accumulated historical losses.
Shareholder Indicators and Future Outlook
The current financial performance has directly influenced key shareholder metrics. The annualized basic earnings per share were reported at a negative 6.90 rupees reflecting the cumulative loss for the half year. The net worth per share of the company stands at 73.93 rupees. While the current dividend paying capacity is restricted by the negative retained earnings the quarterly profit of nearly 10 million rupees is a positive signal for potential recovery in the remaining quarters of the fiscal year.
In conclusion the Progressive Finance Financial Performance for the second quarter of 2082 2083 demonstrates a bank in a state of careful stabilization. While the cumulative half year figure remains in the red the positive quarterly net profit and the slight decline in non performing loans suggest that management strategies for recovery are beginning to take hold. Going forward the institutions ability to control operating costs and recover non performing assets will be the primary determinants of its return to full year profitability.
