Profits decline at six commercial banks despite sector-wide growth

KATHMANDU: Nepal’s banking sector recorded a 19.62 percent increase in net profit during the first 11 months of the current fiscal year, but six commercial banks reported a decline in earnings compared to the same period last year.

According to financial statements up to mid-June (Jestha), the banks that posted lower profits were NIC Asia Bank, Prabhu Bank, NIMB Bank, Standard Chartered Bank Nepal, Everest Bank, and Global IME Bank.

NIC Asia Bank recorded the steepest fall in profitability among commercial banks.

The bank’s net profit dropped by 38.81 percent to Rs 507.7 million during the review period, down from Rs 829.74 million in the corresponding period of the previous fiscal year.

Prabhu Bank reported the second-largest decline, with net profit falling 34.91 percent to Rs 1.50 billion from Rs 2.31 billion a year earlier.

Similarly, NIMB Bank’s net profit declined by 21.04 percent, falling to Rs 4.49 billion from Rs 5.69 billion during the same period last year.

Standard Chartered Bank Nepal reported a 3.74 percent decrease in net profit to Rs 2.62 billion, compared to Rs 2.73 billion in the previous fiscal year.

Everest Bank’s net profit declined by 2.76 percent to Rs 4.12 billion, while Global IME Bank recorded a marginal decline of 0.96 percent, with profit falling to Rs 5.98 billion.

Fourteen banks report profit growth

In contrast, 14 commercial banks posted higher profits during the review period.

Kumari Bank recorded the highest growth, with net profit surging by 1,168.44 percent to Rs 4.71 billion, up from Rs 371.08 million in the corresponding period last year.

State-owned Rastriya Banijya Bank reported a 68.81 percent increase in net profit, while Sanima Bank’s earnings grew by 44.84 percent.

Machhapuchchhre Bank posted a 44.25 percent rise in profit, followed by Nabil Bank with 32.51 percent growth and Prime Commercial Bank with a 29.06 percent increase.

Other banks reporting higher profits included Himalayan Bank (28.59 percent), Siddhartha Bank (26.30 percent), Citizens Bank International (23.71 percent), NMB Bank (19.78 percent), Nepal SBI Bank (18.66 percent), and Laxmi Sunrise Bank (12.17 percent).

Nepal Bank and Agricultural Development Bank also posted gains, with net profits increasing by 8.37 percent and 7.67 percent, respectively, compared to the first 11 months of the previous fiscal year.