Agricultural Development Bank Profit Drops 29.52% as Dividend Capacity Falls to 6.54%
6th August 2026, Kathmandu
Agricultural Development Bank Limited has published its financial performance details for the fourth quarter of the fiscal year 2025/26.
ADBL Profit Drops 29.52%
The latest financial reports show a notable decrease in overall profitability for the major public sector lending institution. The primary factors driving this downturn include lower net interest income alongside a sharp rise in credit risk provisions.
Financial results indicate that the bank generated a net profit of 2.63 billion Nepali Rupees during the review period. This performance reflects a 29.52% drop compared to the 3.73 billion Nepali Rupees earned in the corresponding period of the previous fiscal year.
Key Financial Highlights and Operating Income
The income performance of Agricultural Development Bank Limited experienced multiple adjustments throughout the fiscal year. Net interest income decreased by 3.45% to drop down to 9.12 billion Nepali Rupees.
At the same time, net operating income reached 10.04 billion Nepali Rupees for the fiscal year. Operating profit for the institution totaled 3.94 billion Nepali Rupees during the quarter review.
Impairment Charges and Non-Performing Loans
A significant driver behind the overall profit reduction was the substantial increase in financial provisions set aside for bad loans. Impairment charges climbed significantly to 1.179 billion Nepali Rupees from the previous year level of 630 million Nepali Rupees.
The asset quality of the bank faced pressures as reflected in the non-performing loan ratio. The asset quality metric rose from 3.44% at the end of the previous fiscal year to 4.07% in the current review period. Higher levels of non-performing loans required the institution to allocate additional funds to protect against potential default risks.
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Deposit Growth and Loan Disbursements
Despite the drop in net profitability, Agricultural Development Bank Limited maintained business volume growth in core operations. Total customer deposits grew from 293 billion Nepali Rupees to 347 billion Nepali Rupees over the fiscal period.
Lending operations also expanded steadily alongside deposit gathering activities. Total loan disbursements increased from 212 billion Nepali Rupees to reach 247 billion Nepali Rupees by the close of the fourth quarter.
Impact on Distributable Profit and Dividend Capacity
The reduction in net earnings translated into a steep decline in overall distributable profits for shareholders. Distributable earnings fell from 2.81 billion Nepali Rupees down to 1.26 billion Nepali Rupees for the period.
This reduction directly restricts the dividend payout capability of Agricultural Development Bank Limited. The total dividend distribution capacity of the bank dropped from 17.98% down to 6.54%.
Per-Share Metrics and Liquidity Status
The quarterly financial report outlines important performance indicators on a per-share basis. Earnings per share for the bank stood at 16.11 Nepali Rupees at the end of the review period.
Net asset value per share was reported at 2,893.61 Nepali Rupees. Meanwhile, the liquidity ratio of the bank remained comfortable at 37.45%, showing strong available reserves relative to financial obligations.
For More: ADBL Profit Drops 29.52%
