20th January 2025, Kathmandu
Everest Bank has reported a 21.11% increase in net profit for the first half of the current fiscal year, reaching NPR 2.07 billion, compared to NPR 1.71 billion during the same period last year. This positive growth underscores the bank’s solid financial performance and effective strategies.
Everest Bank H1 Earnings
Revenue Growth
The bank experienced significant growth in key revenue areas. Interest income rose by 19.11%, reflecting the bank’s effective management of its lending operations. Additionally, fee and commission income saw an increase of 14.46%, further contributing to the bank’s overall revenue. The total operating income grew by 17.69%, which highlights the bank’s operational strength and efficient management.
Reduced Impairment Charges
Everest Bank has effectively managed its risk exposure, reducing impairment charges from NPR 432.3 million to NPR 349.5 million. This reduction helped boost the bank’s operating profit, which grew by 26.97%. This positive trend reflects the bank’s efforts to maintain a healthy and profitable portfolio.
Improved Shareholder Returns
The bank’s earnings per share (EPS) has risen to NPR 32.06, compared to the previous year’s figure. Furthermore, the net worth per share reached NPR 225.79, providing solid returns for shareholders. The bank’s financial strength is evident in its ability to generate value for its investors.
Loan and Deposit Growth
Everest Bank also saw robust growth in its loan and deposit portfolios. It collected NPR 250.43 billion in deposits and issued NPR 208.43 billion in loans, indicating strong demand for its services.
Declining NPL Ratio
The bank’s non-performing loan (NPL) ratio improved, dropping from 0.77% to 0.66%, signaling better risk management and improved loan quality.
Strong Capital Base
Everest Bank maintains a strong capital base, with paid-up capital standing at NPR 12.94 billion and reserves growing to NPR 16.28 billion, providing a solid foundation for future growth.
Conclusion
Overall, Everest Bank’s financial results show impressive profit growth and operational efficiency. The bank’s strong 21.11% profit increase and its ability to effectively manage its loan portfolio position it well for future success.
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