Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL), a leading player in Nepal’s microfinance sector, has reported an impressive financial performance for the third quarter of the current fiscal year. The company’s recently published quarterly report highlights a remarkable surge in net profit and earnings per share (EPS) compared to the corresponding period of the previous fiscal year.
According to the report, HLBSL achieved a net profit of Rs 11.3 million during the review period, a staggering 73.87 percent increase from the Rs 6.5 million recorded in the same quarter last year. This remarkable growth in profitability can be attributed to a significant decrease in impairment charges, offsetting the minimal growth in net interest income.
While the company’s net interest income rose by a modest 4.46 percent, its net fee and commission income witnessed a decline of 23.68 percent during the review period. However, the non-performing loan (NPL) ratio improved, decreasing from 4.91 percent to 4.61 percent. This reduction in NPLs played a crucial role in lowering impairment charges from Rs 22.9 million to Rs 1.7 million, thereby contributing to the substantial increase in net profit.
Consequently, HLBSL’s operating profit surged by an impressive 73.72 percent, reflecting the company’s strong financial performance and effective risk management strategies.
In line with the robust net profit growth, HLBSL’s EPS also witnessed a significant increase, rising from Rs 2.02 to Rs 4.75. The company currently boasts a price-to-earnings (P/E) ratio of 152.58 times and a net worth per share of Rs 126.46, indicating its strong financial position and potential for future growth.
HLBSL reported a distributable profit of Rs 6.2 million for the quarter under review, further solidifying its financial standing and ability to reward its shareholders.
With a paid-up capital of Rs 319.8 million and a reserve fund of Rs 150.4 million, HLBSL remains well-capitalized to support its operations and expand its reach. During the review period, the company collected and borrowed deposits totaling Rs 4.15 billion and extended loans amounting to Rs 4.09 billion, highlighting its active role in promoting financial inclusion and supporting economic growth in Nepal’s rural communities.
HLBSL’s impressive third-quarter performance underscores the company’s commitment to sustainable growth and its pivotal role in providing microfinance services to underserved segments of the Nepali population. As Nepal’s microfinance sector continues to gain momentum, HLBSL’s strong financial results position it as a key player in driving economic empowerment, fostering entrepreneurship, and contributing to the nation’s overall development.
