Net Profit Status of 1st Quarter of Commercial Banks: NIMB Earned The Most, 12 Banks Reported Declined In Profit Led by ADBL

Amidst a pronounced economic slowdown in the market, financial institutions, particularly banks, have faced a notable impact on their profitability. First-quarter reports for the fiscal year 2080/81 highlight a substantial decrease in net profits for 11 banks, with only one bank recording losses.

The Agriculture Development Bank, along with two other government-owned banks, Rastriya Banijya Bank and Nepal Bank, have encountered a decline in their financial performance. Notably, the Agriculture Development Bank reported a loss of Rs. 88.8 Crores, a stark contrast to its Rs. 22 Crores profit in the previous year's Q1, indicating a significant downturn in its financial health. Siddhartha Bank suffered the most, experiencing a severe 91.40% decline in profits, followed by Laxmi Sunrise Bank at 79.53%, Nepal Bank at 76.43%, Kumari Bank at 73.64%, NIC Asia at 42.49%, and Rastriya Banijya Bank at 30.50%.

NIC Asia, which previously reported a profit of Rs. 1.75 Arba in the first quarter of the fiscal year 2079/80, has witnessed a considerable decline in profits, now reduced to Rs. 1.01 Arba.

Similarly, Nepal SBI Bank faced a 23.62% reduction in profits, with Citizens Bank at 19.7%, Sanima Bank at 11.91%, Everest Bank at 9.45%, and Nabil Bank at 6.51%.

Conversely, there were a few banks that saw a positive turn in their financial standing. Standard Chartered Bank marked a 2.01% increase, Global IME Bank at 3.04%, and NMB Bank at 6.53%.

In terms of notable improvements, Himalayan Bank led with a substantial 98.35% increase in profits, followed by Prabhu Bank at 46.7%, Nepal Investment Mega Bank at 33.47%, Prime Bank at 31.73%, and Machhapuchchhre Bank at 20.18%.

Particularly noteworthy was Nepal Investment Mega Bank's impressive achievement of securing the highest profit of Rs. 1.52 Arba in the first quarter of the fiscal year 80/81, leading the profit charts among all banks.