Nepal Commercial Banks Profit Report 2023/24: Nabil Leads, Dividend Insights
21st April 2025, Kathmandu
Commercial banks in Nepal have reported a combined net profit of NPR 41.25 billion during the first nine months (Shrawan to Chaitra) of the ongoing fiscal year 2023/24.
Nepal Commercial Banks Profit Report
The Nepal Rastra Bank (NRB) released this update on Wednesday, reflecting a 1.40 percent growth compared to NPR 40.68 billion earned in the same period last year.
Mixed Performance Across the Sector
Out of the 20 commercial banks in operation, 11 banks managed to increase their net profits, while nine banks recorded a decline. Nabil Bank retained its position as the highest profit earner, whereas Nepal Bank Limited achieved the most significant profit growth during the review period. Despite modest overall growth, the performance varied widely among institutions, highlighting a mixed trajectory for the sector.
Dividend Distribution Trends
As of the third quarter, 19 listed commercial banks possess an average dividend distribution capacity of 7.5 percent. However, their positions differ significantly. Everest Bank leads the dividend chart with a capacity of 34.09 percent, followed by Standard Chartered Bank Nepal at 19.35 percent and Sanima Bank at 18.92 percent.
Nabil Bank and Agriculture Development Bank have capacities of 12.68 percent and 12.25 percent, respectively, while Global IME Bank stands at 12.04 percent.
Other banks, including Nepal SBI Bank, Prime Commercial Bank, and NMB Bank, maintain moderate dividend potential. However, Laxmi Sunrise Bank, Nepal Bank Limited, Siddhartha Bank, and Citizens Bank have relatively limited capacity.
On the lower end, Machhapuchchhre Bank shows minimal capacity at just 0.36 percent. Meanwhile, Himalayan Bank, Prabhu Bank, Kumari Bank, NIC Asia Bank, and Nepal Investment Mega Bank have no current ability to distribute dividends, reflecting the financial strain on these institutions.
Key Profit Highlights
Everest Bank reported a net profit of NPR 3.45 billion, marking a 32.55 percent year-on-year increase. Its earnings per share (EPS) reached NPR 35.61, and the non-performing loan (NPL) ratio stood at a low 0.64 percent.
Nabil Bank, with a profit of NPR 5.05 billion and an EPS of NPR 25.05, maintained its leadership despite a 4.04 percent NPL ratio.
Nepal Bank Limited showed a remarkable turnaround by posting NPR 2.78 billion in profit, a massive surge of 2032.80 percent compared to last year’s NPR 130 million. Global IME Bank earned NPR 4.53 billion in net profit, showing a 37.12 percent rise, with operating profit climbing 34.41 percent to NPR 6.33 billion. In contrast, Rastriya Banijya Bank (RBB) experienced a steep 49.29 percent profit drop to NPR 1.20 billion and reported negative distributable profit.
Challenges and Outlook
While most banks demonstrated resilience, some faced severe setbacks. Kumari Bank’s profit dropped by 72.85 percent, mainly due to increased impairment charges.
NIC Asia Bank’s performance deteriorated sharply, with profits plummeting by 91.81 percent. Himalayan Bank also reported a 74 percent decline in net profit. These results indicate rising pressure in the sector, particularly from non-performing assets and broader economic challenges.
As the fiscal year nears its end, stakeholders will closely watch how final-quarter performances shape dividend announcements and determine the stability of the banking landscape.
For more: Nepal Commercial Banks Profit Report
