20th April 2025, Kathmandu
Nabil Bank Limited has reported the highest net profit among all commercial banks in Nepal for the third quarter of the fiscal year 2080/81.
Nepal Banking Profit Leader
The bank earned NPR 5.05 billion in net profit during the first nine months of the fiscal year. This marks an 8.21% increase compared to the same period last year, when the bank had recorded NPR 4.66 billion in profit.
The increase came mainly due to a sharp drop in impairment charges, despite a decline in interest income.
Mixed Income Trends
Net interest income dropped by 3.96% in the review period. However, fee and commission income rose by 2.27%, providing some cushion.
While total operating income fell slightly by 0.20%, operating profit went up by a strong 14.03%. This jump in operating profit was largely due to lower provisioning expenses.
Impairment charges fell from NPR 3.23 billion to NPR 2.29 billion, helping the bank boost its bottom line.
EPS and Shareholder Returns
Nabil’s Earnings Per Share (EPS) increased by NPR 1.65, reaching NPR 24.89. The bank also reported distributable profit of NPR 2.87 billion, which led to a distributable EPS of NPR 12.68.
The Price-to-Earnings (P/E) ratio stood at 19.56 times, showing strong investor confidence. The bank’s net worth per share reached NPR 226.36 by the end of Chaitra.
Strong Capital and Reserves
Nabil’s paid-up capital now stands at NPR 27.05 billion. Its reserve fund has reached NPR 34.18 billion, reflecting a solid financial foundation.
These strong capital positions help the bank manage risks and remain stable in uncertain markets.
Deposit and Loan Growth
The bank collected NPR 502.10 billion in deposits during the first three quarters. It also extended NPR 401.16 billion in loans during the same period.
This shows strong public trust and efficient credit delivery.
Leading the Sector
Nabil Bank’s performance places it ahead of other commercial banks in terms of profitability. The bank has managed to improve its financial position, even with a dip in interest income. Cost control and better risk management played key roles in this achievement.
Outlook
Nabil’s results highlight its strong management and strategic planning. Its ability to grow profits in a challenging environment sends a positive signal to shareholders and customers.
As the final quarter approaches, Nabil will focus on sustaining its performance and delivering value to its stakeholders.
For more: Nepal Banking Profit Leader