Sanima Bank Reports NPR 450 Million Net Profit For Q1 FY 2025/26

7th November 2025, Kathmandu

Sanima Bank Limited has kicked off the fiscal year 2025/26 on a remarkably strong note, unveiling an unaudited financial report for the first quarter that showcases significant growth across key profitability metrics.

Sanima Bank Reports Net Profit

The bank’s performance, marked by a substantial increase in net profit and a commanding surge in its core revenue, positions it for a positive and potentially rewarding year for its shareholders and stakeholders. This robust beginning reflects the bank’s effective operational strategies and its successful navigation of the current financial landscape.

Core Revenue Drives Profitability: A 27.91% Jump in Net Interest Income

The centerpiece of Sanima Bank’s impressive Q1 results is the stellar growth in its Net Interest Income (NII). This core metric, which represents the difference between the interest earned on loans and the interest paid on deposits, soared to NPR 1.68 billion, marking a monumental increase of 27.91% from NPR 1.32 billion in the corresponding period of the previous fiscal year.

This significant expansion of NII is a strong indicator of the bank’s ability to successfully manage its Net Interest Margin (NIM). While specific details on the underlying factors are often complex, such a jump typically results from a combination of prudent asset-liability management, successful deployment of funds into higher-yielding assets, and efficient management of the cost of funds. A potential factor contributing to this surge could be a strategic focus on the retail credit segment, which often commands a better rate of return for the bank, as well as an overall rise in market lending rates relative to deposit costs, widening the profit margin. This substantial growth in core business revenue has provided a solid foundation for the overall profitability improvement.

Dual Surge: Operating Profit and Net Profit See Double-Digit Growth

The strength of the NII successfully filtered down the income statement, leading to impressive growth in both operating and net profits.

The bank’s Operating Profit climbed to NPR 657.6 million, an increase of 14.94% from NPR 572.1 million reported a year ago. Operating profit is a critical measure as it reflects the efficiency of the bank’s core operations before accounting for extraordinary items, taxes, and loan loss provisions. The fact that the growth in operating profit (14.94%) is slightly higher than the growth in net profit (13.86%) suggests that the bank managed its operating expenses very effectively during the quarter relative to its total operating income.

Following this strong operational performance, the Net Profit for the quarter reached NPR 454.9 million, representing a healthy growth of 13.86% over the previous year’s NPR 399.5 million. This double-digit growth in both operating and net profit underscores the bank’s ability to translate its core business success into tangible bottom-line results, providing confidence in its financial resilience.

Key Financial Indicators Reflect Positive Trajectory

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Beyond the profit figures, the financial report highlights several other metrics that point toward a stable and positive financial health for Sanima Bank.

Earnings Per Share (EPS): The annualized EPS stood at NPR 13.15. While this is a Q1 figure and is subject to change, it provides a crucial benchmark for investors, demonstrating the portion of the bank’s profit allocated to each outstanding share of common stock.

Net Worth Per Share: At NPR 172.71, this figure represents the bank’s assets minus its liabilities, divided by the number of outstanding shares. This improved net worth indicates the strengthening book value and intrinsic worth of the bank’s shares.

Paid-up Capital: The bank maintains a substantial Paid-up Capital of NPR 13.58 billion, which provides a strong cushion against unforeseen risks and complies with regulatory requirements for commercial banks.

Investor Focus: The NPR 213 Crore Distributable Profit

One of the most appealing highlights for shareholders is the Total Distributable Profit of NPR 2.13 billion reported for the quarter. This figure is of paramount importance as it indicates the maximum amount of profit that the bank could potentially distribute as dividends to its shareholders after all regulatory reserves and other mandatory allocations are made.

The large distributable profit figure signals a significant capacity for the bank to reward its investors, which is likely to positively influence investor sentiment and the bank’s share price in the Nepal Stock Exchange (NEPSE). Investors will be closely watching for the subsequent dividend announcements, as the current figure provides a strong foundation for a potentially generous payout for the fiscal year 2025/26.

Outlook: Sustaining Momentum

Sanima Bank’s Q1 results lay out a positive roadmap for the rest of the fiscal year. The 13.86% jump in net profit, driven by the impressive 27.91% increase in Net Interest Income, is a testament to the effectiveness of the bank’s management and strategic initiatives. With a strong capital base, healthy core revenue growth, and a substantial distributable profit, Sanima Bank appears well-equipped to sustain its positive trajectory and continue delivering value to its stakeholders in the competitive Nepali banking sector.

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