Nabil Bank Profit Jumps 33.5% in FY 2025/26, Dividend Capacity Climbs to 19.10%
5th August 2026, Kathmandu
Nabil Bank Limited has reported a strong financial performance for the fourth quarter of the fiscal year 2025 26, posting a 33.50 percent year-on-year increase in net profit.
Nabil Bank Profit Jumps
The growth in net earnings was primarily driven by higher net interest income alongside a significant decline in impairment charges across its credit portfolio.
According to the unaudited financial statements released by the commercial bank, net profit rose to Rs 7.91 billion, compared to Rs 5.92 billion recorded in the previous fiscal year.
Higher Interest Income and Lower Impairment Boost Earnings
The net interest income of the bank expanded from Rs 16.32 billion to Rs 17.09 billion, reflecting steady lending performance and stable interest margins.
During the same review period, impairment charges declined sharply from Rs 4.20 billion to Rs 2.67 billion, which substantially supported overall profitability.
As a direct result of these operational improvements, operating profit climbed 25.22 percent to Rs 11.56 billion, up from Rs 9.24 billion earned in the prior fiscal year.
Dividend Capacity Improves to 19.10 Percent
Following required regulatory adjustments and reserve allocations, the distributable profit of Nabil Bank reached Rs 5.16 billion at the end of the fourth quarter.
This distributable earnings figure translates into a total dividend distribution capacity of Rs 19.10 per share.
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The expanded distributable profit indicates strong potential for an attractive dividend return for shareholders, subject to formal approval by regulatory authorities and the annual general meeting.
Deposits and Loans Register Double-Digit Growth
The bank recorded healthy business volume expansion and customer base growth across its operations during the review period.
Key balance sheet metrics include:
- Customer deposits increased by 12.95 percent to reach Rs 592.55 billion
- Total loans and advances grew by 12 percent to reach Rs 460.31 billion
- Overall total assets expanded by 15.38 percent to stand at Rs 734.73 billion
The steady expansion in both deposit collection and credit disbursement highlights continued business momentum and strong market presence across Nepal.
Asset Quality Shows Noticeable Improvement
Nabil Bank reported stronger asset quality indicators and effective credit risk management during the fiscal year.
The gross non-performing loan ratio declined from 4.48 percent to 4.20 percent by the close of the fourth quarter.
Additionally, the net non-performing loan ratio stood at 0.58 percent, reflecting robust provision coverage and proactive loan recovery measures.
Key Financial Indicators Summary
- Net Profit: Rs 7.91 billion, reflecting a 33.50 percent increase
- Net Interest Income: Rs 17.09 billion
- Operating Profit: Rs 11.56 billion
- Distributable Profit: Rs 5.16 billion
- Dividend Capacity: 19.10 percent per share
- Customer Deposits: Rs 592.55 billion, up 12.95 percent
- Loans and Advances: Rs 460.31 billion, up 12 percent
- Total Assets: Rs 734.73 billion, up 15.38 percent
- Gross Non-Performing Loan Ratio: 4.20 percent
- Net Non-Performing Loan Ratio: 0.58 percent
- Earnings Per Share: Rs 28.36
- Net Worth Per Share: Rs 247.28
- Liquidity Ratio: 28.87 percent
Future Operational and Financial Outlook
Nabil Bank’s fourth-quarter financial results for FY 2025 26 demonstrate robust profit growth, enhancing asset quality, expanding core banking portfolios, and higher dividend distribution capacity.
With distributable profit rising to support a 19.10 percent dividend capacity, the commercial bank is well-positioned to maintain shareholder value while driving sustainable financial growth.
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