20 commercial banks earn net profits of over Rs 16 billion

KATHMANDU, OCTOBER 23: All commercial banks in Nepal have published their unaudited financial reports for the first quarter of the current fiscal year. According to these reports, the net profits of 20 commercial banks collectively increased by 20.17% compared to the same period last year. In this quarter, the total net profit generated by these banks exceeded NPR 16.18 billion.

During the same period last year, these banks had reported a combined net profit of over NPR 13.47 billion. The rise in profits this year is partly attributed to a reduction in impairment charges across most banks. Among the banks, Nabil Bank recorded the highest profit, while NIC Asia Bank posted the lowest. Nabil Bank’s profit grew by 39.97%, reaching over NPR 2.05 billion.

On the other hand, NIC Asia Bank’s net profit dropped by a significant 89%, earning just over NPR 110.5 million in the first quarter. In comparison, the bank had posted a profit of over NPR 1.01 billion during the same period last year.

Several other banks also reported declines in profit compared to last year. Rastriya Banijya Bank’s profit fell by 82.40%, Citizens Bank’s by 50.75%, Himalayan Bank’s by 31.22%, Sanima Bank’s by 17.27%, Machhapuchhre Bank’s by 7.19%, and Nepal Investment Mega Bank’s by 3.82%.

Meanwhile, the Agricultural Development Bank, which had reported a net loss of over NPR 880 million last year, managed to turn things around, posting a net profit of over NPR 190.9 million this quarter.

In terms of growth, Siddhartha Bank saw the highest increase in profit. Its net profit surged by an impressive 791.43% compared to last year, rising from NPR 42.8 million to over NPR 382 million this year.