Nabil Bank Q2 Results: 1.28% Profit Growth, Strong Capital Adequacy, & Enhanced Non-Interest Income

Nabil Bank Q2 Results
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21st January 2025, Kathmandu

Nabil Bank has announced a net profit of NPR 3.24 billion for the first half of the current fiscal year 2025 (FY 2024/25), reflecting a 1.28% growth compared to the same period last year. Last year, the bank’s profit for this period was NPR 3.20 billion.

Nabil Bank Q2 Results Profit Growth

Profit Growth Despite Interest Income Decline

The bank faced a 4.21% drop in interest income, which now stands at NPR 7.89 billion. However, this decline was offset by an increase in commission and fee income, which grew by 1.82% to reach NPR 1.51 billion. These positive results allowed Nabil Bank to maintain profitability despite the dip in interest earnings.

Strong Capital Position and Higher Earnings Per Share

Nabil Bank’s paid-up capital remains solid at NPR 27.05 billion, and its reserve fund amounts to NPR 1.89 billion.

The bank also reported an increase in earnings per share (EPS), which rose from NPR 23.74 to NPR 24.05. This improvement in EPS reflects the bank’s ability to generate returns for its shareholders.

Reduced Loan Loss Provisions Reflect Better Risk Management

For loan loss provisions, Nabil Bank set aside NPR 1.35 billion, a reduction of NPR 620 million compared to last year’s provision.

This decrease highlights the bank’s successful efforts to manage its non-performing loans (NPLs). The bank’s NPL ratio stands at 4.93% of its total loan portfolio, a manageable level.

Stable Financial Outlook Amid Challenges

By the end of the six-month period, Nabil Bank reported a distributable profit of NPR 1.89 billion. The rise in commission and fee income helped mitigate the impact of declining interest income, ensuring the bank’s continued financial stability.

This outcome demonstrates the bank’s ability to adapt to changing market conditions while maintaining a healthy financial position.

Nabil Bank’s overall performance reflects its robust financial strategies and effective management of both income sources and risks. The results show that, despite a decrease in interest income, the bank continues to grow in key areas, positioning itself well for future success.

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