NIC Asia Profit Decline in Q3 Amid Weakening Core Income 2083
28th April 2026, Kathmandu
In the third quarter financial results for the fiscal year 2082/83, NIC Asia Bank Limited has reported a contraction in its net profitability.
NIC Asia Profit Decline
Released in April 2026, the report highlights a challenging period where a sharp decline in net interest income and operating profit has pressured the bank’s bottom line. As one of Nepal’s largest private-sector banks, NIC Asia is currently navigating a high-volatility environment in Baisakh 2083, focusing on reducing impairment costs while attempting to stabilize its core earnings base.
Analysis of Net Profit and Core Earnings Pressure
The bank’s net profit for the first nine months of the fiscal year fell to NPR 140.3 million, marking a 10.49 percent decrease compared to the NPR 156.7 million recorded in the same period last year. This decline is largely attributed to a significant squeeze on the bank’s primary revenue streams.
Net Interest Income: Witnessed a sharp 20.78 percent drop, falling to NPR 6.30 billion. This indicates a significant impact on the bank’s ability to maintain healthy margins between deposit costs and loan interests.
Operating Profit: Experienced a severe 47.86 percent decline, dropping to NPR 672.9 million. This suggests that weakened operational performance and higher costs relative to income have impacted the overall efficiency of the bank.
Management of Impairment Charges
Despite the pressure on earnings, NIC Asia Bank successfully managed a slight reduction in its provisioning for bad loans. This minor relief has prevented a further slide in net profitability during a period where other banks, such as Agricultural Development Bank, have seen impairment costs nearly double.
Impairment Charges: Decreased from NPR 3.05 billion in the previous year to NPR 2.91 billion in the current review period.
Shareholder Metrics and Negative Distributable Profit
For investors and shareholders, the current financial indicators reflect a period of consolidated risk and reduced immediate returns.
Earnings Per Share (EPS): Currently stands at NPR 1.25.
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Net Worth Per Share: Reported at NPR 172.97.
Distributable Profit: Remains deeply negative at NPR 13.65 billion. This substantial negative figure highlights the ongoing pressure on the bank’s ability to issue dividends and signals a long road toward financial recovery for shareholders.
Capital Base and Market Position
NIC Asia Bank continues to operate with a massive business volume and a wide customer reach, maintaining a solid foundation in terms of deposits and paid-up capital.
Paid-up Capital: NPR 14.91 billion.
Reserve Fund: NPR 10.88 billion.
Total Deposits: NPR 334.37 billion.
Total Loans: NPR 201.34 billion.
Conclusion
The third-quarter results for 2026 show that NIC Asia Bank is in a phase of significant financial adjustment. While the bank maintains a large deposit base, the 20.78 percent fall in net interest income and the deeply negative distributable profit present clear hurdles for the coming quarters. The bank’s ability to reverse these trends will likely depend on its success in improving operational efficiency and finding new avenues for non-interest-based revenue growth.
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