20th January 2025, Kathmandu
Global IME Bank has achieved a net profit of NPR 3.05 billion (NPR 305.34 million) for the second quarter of the current fiscal year, marking a remarkable 49.51% increase over the same period last year. This performance demonstrates the bank’s ability to grow its profits despite challenges in certain income streams.
Global IME Bank Q2 Profit Growth
Interest Income Decline and Impact on Profit
The bank’s net interest income decreased by 8.09%, which is a key factor in the overall decrease in operational income by 4.41%. However, the bank’s strategic move to reduce impairment charges significantly boosted its profit. The impairment charges fell from NPR 4.13 billion in the previous year to NPR 2.2 billion this year. This shift resulted in a 47.88% increase in operating profit, enhancing overall financial performance.
Increased Income from Fees and Commissions
While the bank faced a decline in interest income, it saw a substantial 17.34% increase in fees and commission income. This positive outcome helped balance the overall decline in operating income, showcasing the bank’s diverse income sources and strategic focus on fee-based earnings.
Higher Earnings Per Share (EPS)
As a result of the profit increase, the bank’s earnings per share (EPS) grew by NPR 4.71, reaching NPR 16.02. This improvement reflects a positive return for shareholders. The bank’s net worth per share is now NPR 169.58, while the price-to-earnings ratio stands at 13.86, further indicating the bank’s strong financial standing.
Capital and Reserves Show Healthy Growth
Global IME Bank’s paid-up capital has reached NPR 38.11 billion, with reserves accumulating to NPR 26.52 billion. These strong financial foundations highlight the bank’s ability to continue expanding its operations and supporting economic growth.
Significant Deposit and Loan Growth
As of December, the bank has collected a total of NPR 513 billion in deposits, reflecting strong customer trust and confidence. It has also provided loans totaling NPR 407 billion, demonstrating its active role in lending and fueling economic activities.
Distributable Profits for Shareholders
Global IME Bank has a distributable profit of NPR 2.64 billion, with each share earning a distribution income of NPR 12.49. This indicates that the bank continues to deliver value to its shareholders, with a focus on providing consistent returns.
Strategic Focus on Risk Management and Growth
Despite challenges in interest income, the bank’s ability to manage impairment charges has been crucial to its profitability. The bank’s focus on growing fee-based income and minimizing risks has positioned it well for sustainable growth.
Future Outlook and Stability
Looking ahead, Global IME Bank remains focused on ensuring long-term growth through strategic management. With its solid financial base, increasing fee income, and prudent risk management, the bank is on track for continued success in Nepal’s competitive banking sector.
In conclusion, Global IME Bank’s performance in the second quarter demonstrates resilience and growth. Despite challenges in certain areas, the bank’s ability to adapt and grow its non-interest income has contributed to a strong overall result. The bank continues to show a commitment to financial stability and shareholder value as it moves into the latter half of the fiscal year.
For more: Global IME Bank Q2 Profit Growth
