Nepal Finance Financial Results and Q2 Performance Analysis 2082/83
29th January 2026, Kathmandu
The early financial reports for the second quarter of fiscal year 2082/83 indicate a period of operational adjustment for Nepal Finance Limited (NFS). As the first finance company established in Nepal, the institution continues to navigate a complex macroeconomic environment marked by fluctuating interest rates and evolving credit risks.
Nepal Finance Financial Results
While specific second quarter net profit figures for this year are currently being finalized in provisional statements, the company has entered the 2082 2083 cycle following a challenging first quarter where it reported a net loss of 59.56 million rupees. This set the stage for a second quarter focused on recovery and balance sheet stabilization.
Revenue Streams and Interest Rate Environment
Core earnings for the company are largely driven by its interest based activities. For the 2082 2083 period, Nepal Finance has been operating within a declining interest rate environment, which impacts both its cost of funds and its lending yields. The base rate for the company has shown a downward trend, moving from 9.05 percent in Ashadh 2082 to 8.63 percent by Mangsir 2082. This reduction in the base rate is a direct result of a lower cost of funds, which has helped the institution maintain competitive lending rates for its various loan products.
Interest rates on deposits have also been adjusted to reflect these market shifts. As of Magh 2082, saving account rates ranged between 3.50 percent and 4.50 percent, while fixed deposits for individuals reached up to 6.75 percent for tenures exceeding two years. These adjustments are part of a broader strategy to manage interest spreads and improve net interest income in a highly competitive “C” class financial institution landscape.
Asset Quality and Risk Management
Maintaining asset quality remains a critical priority for Nepal Finance as it addresses broader sector wide pressures on credit recovery. The institution has been working to manage its non performing loan portfolio and mitigate credit risks through rigorous review processes. For the 2082 2083 fiscal year, the company is required to adhere to the latest NFRS 9 Expected Credit Loss guidelines, which mandate proactive provisioning based on changes in credit quality. These regulatory requirements, while ensuring long term stability, often necessitate higher impairment charges that can weigh on short term profitability.
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Operating Efficiency and Digital Expansion
To counteract pressure on its margins, Nepal Finance has prioritized digital banking and service diversification. The company’s service suite now includes mobile banking, Connect IPS, and various digital wallet loads like Esewa and Khalti. By encouraging digital transactions, the bank aims to increase fee and commission income while simultaneously improving operating efficiency. Personnel and administrative costs continue to be significant, but the shift toward automated ABBS (Any Branch Banking System) facilities and online account opening is designed to streamline branch operations and reduce the overall cost to income ratio.
Balance Sheet and Capital Strength
The balance sheet of Nepal Finance continues to show stability in its core components. The company maintains a diverse range of deposit products and credit facilities, including home loans and EMI based products, to serve its retail and corporate clients. Capital adequacy remains a primary focus, with the institution ensuring it stays above the regulatory requirements set by Nepal Rastra Bank. As of early 2082, the book value per share was recorded at 124.29 rupees, reflecting the intrinsic value of the company’s equity despite the recent fluctuations in net income.
Investor Indicators and Market Outlook
On the Nepal Stock Exchange, Nepal Finance Limited (NFS) has seen active trading as investors react to its quarterly performance and broader market trends. As of late January 2026, the share price fluctuated around the 675.80 rupee mark, with a market capitalization exceeding 5 billion rupees. While the trailing dividend yield currently stands at zero due to recent profit pressures, the company’s focus on clearing legacy losses and stabilizing its earnings base is aimed at restoring shareholder returns in future periods.
In conclusion, the Nepal Finance Limited financial results for the second quarter of 2082 2083 reflect an institution in a phase of strategic recalibration. By lowering its base rate, expanding its digital offerings, and maintaining a cautious approach to credit disbursement, the company is positioning itself for a return to sustained profitability. The upcoming quarters will be instrumental in determining how effectively the institution can leverage its lower cost of funds to drive loan growth while keeping impairment charges under control.
For More: Nepal Finance Financial Results
