Nepal Bank Q3 Profit Surge: Over 2000% Growth & Dividend Potential
21st April 2025, Kathmandu
Nepal Bank Limited has reported a major financial improvement in the third quarter of the current fiscal year 2080/81. The bank earned a net profit of NPR 2.78 billion, a sharp rise from NPR 130 million in the same period last year. This is a jump of over 2,032%, showing a major turnaround in performance.
Nepal Bank Q3 Profit Surge
The biggest reason behind this profit jump is the fall in impairment charges. Impairment charges are the money banks keep aside to cover loan defaults. When loans start getting paid, this money is added back as income.
Last year, Nepal Bank had set aside NPR 3.66 billion as impairment charges. This year, that number fell to just NPR 282.8 million. This allowed the bank to show higher profits.
Higher Interest and Operating Income
Along with lower provisions, the bank also increased its income. Net interest income rose from NPR 6.77 billion to NPR 7.10 billion. Similarly, total operating income crossed NPR 8.56 billion.
Most importantly, the bank’s operating profit surged from NPR 580 million last year to NPR 4.31 billion this year. This shows better performance in core banking activities.
Dividend Capacity Turns Positive
Nepal Bank has also improved its ability to pay dividends. Last year, the bank had a negative distributable profit of nearly NPR 1 billion. But this year, it rose to a positive NPR 1.27 billion.
As a result, the bank now holds the capacity to distribute dividends. Based on available data, it could offer around 2.78% dividend to shareholders.
Key Financial Indicators Show Strength
The bank’s earnings per share (EPS) increased from NPR 1.18 to NPR 25.26. Its net worth per share also reached NPR 260.74. These figures suggest a strong recovery and rising investor value.
Nepal Bank’s paid-up capital stands at NPR 14.69 billion. It also has reserves of NPR 23.31 billion, and a general reserve of NPR 300 million. These numbers reflect a solid capital base.
Better Loan Quality and Cost Control
Nepal Bank has worked on improving loan quality. By reducing the share of non-performing loans, the bank avoided big losses. It also kept operating costs under control. These actions helped improve earnings.
Positive Outlook for Investors
This financial comeback may rebuild investor trust. Nepal Bank’s progress shows that the bank is focused on long-term growth. If it maintains good loan recovery and tight cost management, more strong quarters could follow.
The results from this quarter show that careful planning and internal reform can lead to success. Nepal Bank has proved that even a struggling institution can bounce back with the right moves.
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