Everest Bank Earns Rs 2.11 Billion Profit in Q2

28th January 2026, Kathmandu

Everest Bank Limited, one of Nepal’s leading commercial banks, has released its unaudited financial report for the second quarter of the fiscal year 2082/83 (mid-January 2026). The bank has demonstrated financial resilience by maintaining a stable growth trajectory, underpinned by a rise in net interest income and a robust distributable profit. Despite a challenging macroeconomic environment and a moderate increase in impairment charges, Everest Bank continues to be one of the most efficient and profitable institutions in the Nepali banking sector

Everest Bank Earns Profit

For the first six months of the current fiscal year, the bank reported a net profit of Rs 2.11 billion. This represents a 2.04 percent increase compared to the Rs 2.07 billion earned during the same period of the previous fiscal year. While the growth rate is modest, it reflects the bank’s conservative and steady approach to profit management during a period of shifting interest rates.

Core Earnings and Operational Performance

The bank’s core business performance remains strong, with net interest income serving as the primary driver of revenue. During the review period, net interest income surged by 5.96 percent, reaching Rs 4.57 billion. This increase is a result of effective spread management and a growing loan portfolio, despite fluctuations in the cost of funds across the industry.

Operating profit also followed a positive trend, rising by 2.06 percent to Rs 3.17 billion. This indicates that the bank’s core banking operations—excluding tax and extraordinary items—are functioning with high efficiency. Everest Bank’s partnership with Punjab National Bank (India) continues to provide it with a competitive edge in remittance and cross-border banking, contributing to its stable operational income.

Managing Rising Impairment Charges

A key detail in the Q2 report is the increase in impairment charges, which reflect the bank’s proactive stance on risk management and the overall credit environment in Nepal. The impairment expense rose from Rs 349.5 million in the previous fiscal year to Rs 562.7 million in the current period.

While higher impairment charges typically put pressure on the bottom line, Everest Bank has managed to absorb these costs without compromising its net profit growth. The increase suggests a cautious outlook on potential loan defaults, ensuring that the bank remains well-provisioned against any future economic headwinds. This conservative provisioning is a hallmark of Everest Bank’s financial strategy, prioritizing long-term stability over short-term spikes in reported earnings.

Robust Dividend Capacity and Distributable Profit

For shareholders, the most encouraging highlight of the report is the bank’s distributable profit, which reached Rs 3.34 billion as of mid-January 2026. This reflects the actual amount available for distribution as dividends after fulfilling all regulatory requirements and reserve transfers.

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The distributable earnings per share (EPS) stand at a healthy Rs 48.72, signaling a high potential for attractive dividends at the end of the fiscal year. However, the regular basic EPS saw a marginal decline of Rs 1.20, settling at Rs 30.86, primarily due to the increased share capital following previous bonus issues. The bank’s net worth per share remains strong at Rs 235.15, providing a solid foundation for investor confidence.

Balance Sheet Strength and Capital Adequacy

Everest Bank’s balance sheet continues to expand, reflecting its significant market share in both the deposit and credit segments. As of the end of the second quarter, the bank has successfully mobilized deposits worth Rs 304.95 billion. On the lending side, it has extended loans and advances totaling Rs 236.42 billion, maintaining a healthy credit-to-deposit ratio.

The bank’s capital position remains one of the strongest in the industry:

Paid-up Capital: Rs 13.72 billion.

Reserves and Surplus: Rs 18.52 billion.

Total Assets: The bank continues to manage a massive asset base, ensuring it has the liquidity and capital required to support large-scale industrial and infrastructure projects in Nepal.

Conclusion

The second-quarter financial results of Everest Bank Limited confirm its status as a pillar of stability in the Nepali financial landscape. By delivering consistent profit growth and maintaining a high distributable profit, the bank has balanced the need for operational growth with the expectations of its shareholders. While the rise in impairment charges requires careful monitoring, the bank’s strong interest income and solid capital reserves suggest it is well-equipped to navigate the remainder of the 2082/83 fiscal year.

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