NIL

By Sandeep Chaudhary

Neco Insurance Q4 Results: Revenue Declines but Profit Margins Stay Strong

Published on August 22, 2025

Neco Insurance Ltd. (NIL) has published its audited financial results for the fourth quarter of FY 2024/25, reflecting a year-on-year decline in revenue but a solid profitability profile, backed by strong underwriting efficiency and stable investment income.

The company reported a total revenue of Rs. 2.42 billion in Q4, down 21.23% year-on-year compared to Rs. 2.53 billion in Q4 of FY 2023/24. Sequentially, revenue improved from Rs. 1.73 billion in Q3, reflecting recovery momentum despite the yearly contraction.

The gross profit stood at Rs. 1.49 billion, with a gross margin of 61.62%, lower than last year’s 67.48% but stronger than Q2 and Q1 margins (49–47%). This highlights improved cost efficiency compared to earlier quarters, though still pressured by lower premium collections.

Neco Insurance recorded a net income of Rs. 550.83 million in Q4, compared to Rs. 685.71 million in Q4 last year and Rs. 369.33 million in Q3. The net profit margin stood at 22.73%, only slightly lower than last year’s 27.12%, signaling resilient underwriting performance.

Return indicators showed a gradual slowdown. Return on Assets (ROA) was 5.05%, down from 7.45% last year, while Return on Equity (ROE) fell to 9.71%, compared to 14.50% in Q4 of FY 2023/24.

On a per-share basis, EPS (annualized) was Rs. 21.90, a decline from Rs. 34.07 last year, while the reported PE ratio stood at 32.44, slightly higher than last year’s 25.33, reflecting weaker earnings.

From a balance sheet perspective, the book value per share was Rs. 285.75, while the market value per share traded at Rs. 710.36, around 2.5x book value, showing continued investor confidence.

Insurance Business Indicators

Total issued policy count stood at 291,897, nearly stable compared to 297,186 last year (-1.78% YoY).
Renewed policies improved to 95,418 (+16.98% YoY), indicating stronger retention of existing clients.
Total claims paid rose to 10,903 cases (+13.79% YoY), showing higher payouts to policyholders.
Outstanding claims remained stable at 9,672, almost unchanged from 9,702 last year, indicating steady claim settlement practices.
Long-term investments were Rs. 1.08 billion, down from Rs. 1.26 billion last year, showing reduced allocation toward longer-tenure assets.
Short-term investments data appears abnormally high in the report (reported in hundreds of billions % format), suggesting a reporting or formatting issue. Nonetheless, the company continues to maintain significant liquidity reserves.

Dividend for FY 2024/25 has not yet been declared. Last year, Neco distributed Rs. 7.37 per share.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

Prabhu Insurance (PRIN) has published its audited Q4 2024/25 results, showing weaker performance compared to last year. The company’s total revenue fell by 25.70% YoY to Rs. 962.10 million, while net income dropped sharply by 56.8% to Rs. 211.96 million. Profit margins compressed, with net margin declining to 22.03% from 48.47% a year ago. Similarly, returns weakened as ROA slipped to 3.24% and ROE to 6.38%, both well below last year’s levels. Earnings per share also fell significantly to Rs. 14.70 from Rs. 34.05, while the P/E ratio jumped to 61.89, indicating the stock remains highly valued despite reduced profitability. On the balance sheet side, book value per share improved to Rs. 325.91, and the market value per share closed at Rs. 910, showing that PRIN trades at nearly 2.8 times its book value. Operationally, the company issued 123,873 policies, almost flat YoY, while renewed policies rose 27.95%. Claims paid fell by 24.96%, but outstanding claims increased, raising some concerns. Although PRIN had distributed Rs. 18.95 per share in dividend earlier, the steep decline in profitability could pressure future payouts. Overall, the insurer shows stable topline operations but is facing profitability and efficiency challenges despite maintaining high market valuations.

Soaltee Hotel Q4: Strong Revenue Growth, Stable Margins, and Robust Profitability

The book value per share stood at Rs. 27.15, while the market price surged to Rs. 577.58, trading at more than 21x its book value. This premium pricing suggests high investor confidence and brand strength. Dividend history remained stable, with SHL continuing its shareholder return policy — the company had distributed Rs. 36.84 per share previously.

Hathway Investment Nepal Q4: Revenue Jumps Sharply, Margins Stable, But Valuation Stretched

Hathway Investment Nepal reported Q4 revenue of Rs. 197.49 million (+275.88% YoY) and net income of Rs. 64.95 million (-22.67% YoY). Margins remain stable with 32.89% net margin, but ROA (2.39%) and ROE (3.08%) indicate moderate returns. EPS stood at Rs. 2.29, while the stock trades at a very high P/E of 531.92, signaling stretched valuations. Despite the revenue rebound, the absence of dividends this year contrasts with last year’s Rs. 10.53 payout.

NESDO Laghubitta Q4: Heavy NPL Pressure Drags Earnings into Red Despite Strong Revenue Base

NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) reported Q4 FY 2024/25 revenue of Rs. 522.31 million (-9.09% YoY) but a net loss of Rs. 198.97 million. Gross profit margin stood at 28.77%, while net margin was deeply negative at -38.09%. ROA and ROE were -3.58% and -13.83% respectively. EPS came in at -Rs. 11.89, with book value declining to Rs. 80.83. Despite ongoing losses, CITY’s market value per share jumped to Rs. 873.65, suggesting that investors are pricing in long-term tourism recovery prospects.

Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

Standard Chartered Bank Nepal (SCB) reported Q4 FY 2024/25 revenue of Rs. 8.33 billion (-6.60% YoY) with net income of Rs. 3.03 billion (-8.4% YoY). Despite revenue pressure, profit margin strengthened to 36.33%, while ROE stood at 14.41%. Asset quality improved with NPLs down to 1.47% and provisioning coverage rising to 160%. EPS stood at Rs. 30.17, with a PE ratio of 21.75. The bank continues to maintain strong capitalization and liquidity, positioning itself as one of the most stable commercial banks in Nepal.

Prime Commercial Bank Q4 Results: Strong Profitability Despite Revenue Slowdown

Prime Commercial Bank (PCBL) reported Q4 FY 2024/25 revenue of Rs. 23.53 billion (-9.21% YoY) but improved profitability with net income of Rs. 4.02 billion (+6.6% YoY). Net profit margin strengthened to 17.10%. EPS rose to Rs. 20.74, while ROE stood at 12.55%. NPLs increased to 5.56%, but cost of funds fell to 5.21%, supporting better margins. Market value closed at Rs. 276.31 per share.

NIC Asia Bank Q4 Results: Weak Profit Growth Despite Solid Revenue Base

NIC Asia Bank (NICA) reported Q4 FY 2024/25 revenue of Rs. 28.81 billion (-29.12% YoY) and net income of just Rs. 161.57 million, down sharply from Rs. 1.38 billion a year earlier. Margins remained thin with net profit margin at 0.56%. ROE dropped to 0.54% and EPS to Rs. 1.08, reflecting weak earnings. Asset quality worsened as NPLs rose to 6.28%, though capital adequacy improved to 14%. Market value per share closed at Rs. 420.05.

Nepal Investment Bank Q4 Results: Strong Profitability Amid Revenue Decline

Nepal Investment Bank (NIMB) reported Q4 revenue of Rs. 36.10 billion (-11.22% YoY) but net income surged 29.9% to Rs. 6.75 billion, with margins strengthening to 18.72%. ROE stood at 10.57% and EPS at Rs. 19.80, reflecting robust profitability. NPL ratio inched up to 5.85%, but loan-loss coverage improved to 108.87%. Lower cost of funds and strong liquidity supported earnings. Market value per share rose to Rs. 231.02, highlighting investor confidence.