Commercial Banks Report 4.62% Decline in Net Profit for Q2 FY 2081/82; NABIL Leads, Prabhu Bank Sees Highest Growth
Mon, Jan 20, 2025 12:06 PM on Financial Analysis, Highlight News, Company Analysis,
Nepal's commercial banks have reported a decrease in net profits for the second quarter of the current fiscal year, according to their unaudited financial statements. As of the end of Poush (mid-January), the 20 commercial banks collectively earned a net profit of Rs. 27.43 Arba, marking a 4.62% drop compared to the Rs. 28.76 Arba earned during the same period last year.
Out of the 20 banks, 9 recorded a decrease in net profits, contributing to the overall decline. However, 11 banks experienced growth in their earnings. Among these, Prabhu Bank stood out with the highest increase in net profit, reporting an impressive 85.49% rise. The bank's net profit surged from Rs. 72.03 Crores last year to Rs. 133.61 Crores this year. Similarly, Nepal Investment Mega Bank saw an increase of over 57.18%, while Global IME Bank's profit grew by 49.51%, and NMB Bank's profit rose by 45.61%.
On the other hand, NIC Asia Bank experienced the steepest drop in net profit, with a staggering 92.03% decrease. The bank’s profit plummeted from Rs. 1.90 Arba last year to just Rs. 15.17 Crores this year. Kumari Bank also saw a significant decline in net profit, falling by over 68.20%, while Rastriya Banijya Bank’s profit dropped by more than 62.14%.
Nabil Bank recorded the highest net profit for the quarter, amounting to Rs. 3.24 Arba, which marks a modest 1.29% increase from the same period last year. Global IME Bank also posted a strong performance, reporting a net profit exceeding Rs. 3 Arba.
During the second quarter, 11 commercial banks surpassed the Rs. 1 Arba mark in net profits. Among them, two banks reported more than Rs. 3 Arba in net profit, while three banks earned over Rs. 2 Arba. The remaining six banks each posted profits exceeding Rs. 1 Arba. Despite the overall decline in profits, the banking sector remains an important player in Nepal's financial landscape, with some institutions continuing to demonstrate significant growth.
