Himalayan Bank Posts NPR 654.8 Million Net Profit in Q1: Earnings Contract Slightly Amid Higher Non-Performing Loans

1st November 2026, Kathmandu

Himalayan Bank Limited has released its unverified financial report for the first quarter of the fiscal year 2083/84 (ending Mid-October 2026).

Himalayan Bank Net Profit Posted

The bank reported a net profit of NPR 654.8 million during the review quarter. This represents a 6.84 percent decline compared to NPR 702.8 million earned in the corresponding period of the previous fiscal year, primarily due to lower interest revenue and slower credit expansion.

Net Profit and Operational Revenue Trends

The reduction in top-line net interest income impacted overall earnings, though lower provisioning helped support operating profit stability.

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• Net Profit: Achieved NPR 654.8 million, down 6.84 percent year-on-year from NPR 702.8 million in Q1 FY 2082/83.
• Net Interest Income: Contracting by 12.30 percent to NPR 2.20 billion, down from NPR 2.51 billion in the baseline quarter.
• Impairment Charges: Decreased significantly to NPR 353.1 million, compared to NPR 578.9 million in the prior year’s first quarter.
• Operating Profit: Recorded at NPR 1.01 billion, down slightly from NPR 1.06 billion in the corresponding period last year.

Deposit Mobilization, Lending Expansion, and Balance Sheet Size

The institution maintained a massive deposit base while continuing to oversee a large credit portfolio.

• Total Deposit Mobilization: Accumulated to NPR 353.65 billion by the end of the first quarter.
• Total Credit and Advances: Reached NPR 232.36 billion.
• Paid-up Capital: Stood at NPR 22.58 billion.

Asset Quality Metrics and Key Financial Ratios

Sustained stress on loan recovery led to a marginal increase in non-performing loans and negatively affected distributable reserves.

• Non-Performing Loan (NPL) Ratio: Rose to 7.98 percent, up from 7.39 percent recorded in the baseline period.
• Earnings Per Share (EPS): Recorded at NPR 11.60, compared to NPR 12.45 in Q1 of the previous fiscal year.
• Net Worth Per Share: Stood at NPR 180.42.
• Distributable Profit: Negative NPR 9.79 billion, widening from negative NPR 7.54 billion reported in the base period.

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