Machhapuchchhre Bank Records Impressive 92% Profit Growth, Demonstrates Strong Dividend Capacity
5th August 2025, Kathmandu
Machhapuchchhre Bank, a leading commercial bank in Nepal, has reported a stellar financial performance for the fiscal year 2024/25 (2081/82). According to its recently published fourth-quarter financial statement, the bank’s net profit saw an astounding 92.44% increase, a testament to its robust operational strategies and effective financial management.
Machhapuchchhre Bank Profit Growth
The net profit for the fiscal year reached a remarkable NPR 2.01 billion, a substantial leap from NPR 1.04 billion recorded in the previous fiscal year. This significant surge in profitability reflects a strong recovery and growth trajectory, positioning the bank for continued success in the competitive Nepali banking sector.
The impressive financial results are attributed to a combination of factors, including a healthy increase in core banking revenue and a notable improvement in asset quality. This performance has not only strengthened the bank’s financial foundation but also enhanced its ability to provide attractive returns to its shareholders.
Core Financial Performance Highlights
The financial report reveals positive growth across all key metrics, underscoring the bank’s comprehensive and well-rounded performance.
- Net Interest Income: The bank’s core earning capacity, measured by net interest income, showed a solid increase. It grew from NPR 4.98 billion in the previous fiscal year to NPR 5.75 billion, marking a substantial rise that highlights the bank’s successful lending and deposit management strategies.
- Operating and Total Income: Machhapuchchhre Bank’s total operating income saw a healthy 16.51% increase, reaching NPR 7.44 billion. This growth in overall income was a primary driver of the bank’s profitability. Even more impressively, the bank’s operating profit nearly doubled, surging by 99.91% to NPR 3.33 billion. This figure demonstrates a remarkable improvement in operational efficiency and cost management.
- Net Fee and Commission Income: The bank also saw a notable boost in its noninterest income streams. Net fee and commission income, generated from various banking services and transactions, grew by 18.16%, reaching a total of NPR 1.28 billion. This diversification of income streams contributes to the bank’s overall stability and profitability.
Dividend Distribution and Capital Adequacy
The exceptional performance has placed Machhapuchchhre Bank in a strong position to reward its shareholders. Based on its impressive distributable profit, the bank has the capacity to offer a competitive dividend.
- Distributable Profit: The bank’s distributable profit for the fiscal year stands at NPR 1.07 billion. This figure, after all necessary provisions and regulatory adjustments, forms the basis for potential dividend payments to shareholders.
- Dividend Capacity: With a distributable profit of over one billion rupees, Machhapuchchhre Bank has the potential to distribute a dividend of 9.23%. This positive outlook for dividends is likely to boost investor confidence and attract new shareholders to the bank. It is a clear signal of the bank’s financial health and its commitment to providing value to its investors.
Balance Sheet Strength and Stability
The bank’s financial statement also reflects a strong and stable balance sheet, which is a critical indicator of its longterm viability and resilience.
- Paidup Capital and Reserves: As of the end of the fiscal year, Machhapuchchhre Bank’s paidup capital remained strong at NPR 11.62 billion. This solid capital base provides a robust foundation for its operations and growth. Complementing this, the bank’s reserve fund grew to NPR 6.31 billion, an increase of over 8%, which further enhances its financial stability and ability to absorb potential risks.
- Assets and Liabilities: The bank’s total assets grew, driven by a 16.09% increase in deposits, which reached NPR 1.84 trillion. This growth in deposits indicates strong public trust in the institution. Simultaneously, loans and advances to customers increased by 11.74% to NPR 1.41 trillion, demonstrating a healthy lending portfolio. Furthermore, the bank’s nonperforming loan (NPL) ratio saw a slight decline to 3.83%, while the cost of funds fell significantly to 4.23%, indicating improved loan quality and more efficient resource management.
In conclusion, Machhapuchchhre Bank’s financial results for the fiscal year 2081/82 are a powerful testament to its strategic vision and operational excellence. The dramatic increase in net profit, combined with strong growth in key income streams and a robust balance sheet, positions the bank as a leading player in the Nepali banking industry. The capacity to distribute a substantial dividend underscores the bank’s commitment to its shareholders and its bright prospects for the future.
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