13th August 2025, Kathmandu
Global IME Bank Limited has published its unaudited financial statements for the fiscal year ending mid-July 2025, painting a complex yet ultimately positive picture for its shareholders. While the bank’s net profit saw only a modest increase and some key performance indicators faced headwinds, a spectacular surge in distributable profit has set the stage for a potentially rewarding dividend payout. The report underscores the bank’s resilience and its strategic positioning as a leader in Nepal’s highly competitive banking sector.
Global IME Announces Profit
Global IME Bank has announced a net profit of NPR 6.20 billion for the fiscal year ending mid-July 2025, a modest 1.10% increase from the previous year. While key metrics like operating profit and EPS saw a slight decline, the bank reported a massive 961.60% surge in distributable profit to over NPR 5.37 billion, which could lead to a higher dividend payout. The bank maintains a strong capital base, but its non-performing loan (NPL) ratio has risen to 4.87%.
A Closer Look at the Bank’s Performance
Global IME Bank’s latest financial report presents a mixed yet overall resilient picture. While the bank’s net profit grew slightly by 1.10%, reaching NPR 6.20 billion, some underlying figures show the pressures of a challenging economic climate. The bank’s net interest income decreased slightly to NPR 16.71 billion, indicating tight margins and intense competition. This is further reflected in a marginal 2.75% dip in operating profit to NPR 8.77 billion and a decrease in its annualized Earnings Per Share (EPS) from NPR 16.99 to NPR 16.28.
These results are consistent with broader market trends in Nepal, where commercial banks have faced increased competition, subdued credit growth, and rising non-performing assets.
The Staggering Surge in Distributable Profit
The most significant and positive highlight of the report is the extraordinary growth in distributable profit, which skyrocketed by 961.60% to over NPR 5.37 billion. Distributable profit is the portion of a bank’s earnings that can be paid out to shareholders as dividends after all regulatory adjustments and provisions are made. The massive increase in this figure is a strong indicator of the bank’s potential to offer a much more attractive dividend this year compared to the NPR 506.7 million distributed last year. This surge is likely due to the bank having a higher provisioning write-back or a reduction in regulatory deductions compared to the previous fiscal year.
Capital Strength and Future Challenges
Global IME Bank continues to stand out due to its immense size and financial strength. It boasts the highest paid-up capital among commercial banks in Nepal at NPR 38.11 billion, supported by robust reserves of NPR 24.10 billion. The bank’s ability to mobilize a massive deposit base of NPR 550.62 billion and extend NPR 411.79 billion in loans underscores its leadership position in the market.
However, the report also raises a red flag with a slight increase in the non-performing loan (NPL) ratio, which rose to 4.87% from 4.17%. A rising NPL ratio indicates a weakening in the quality of the bank’s loan portfolio and an increase in credit risk. The bank’s management will need to focus on stricter credit risk management and loan recovery to ensure this trend doesn’t continue.
Despite these challenges, Global IME Bank’s strong capital adequacy and impressive growth in distributable profit position it well for the future. The bank is likely to continue its strategy of expanding digital services and focusing on non-interest income to drive growth, while simultaneously managing its asset quality to maintain long-term stability and profitability.
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