NIC Asia Bank Q1 Net Profit Edges Up to NPR 127.4 Million as Non-Performing Loans Approach 10 Percent

2nd November 2026, Kathmandu

NIC Asia Bank Limited has published its unverified financial results for the first quarter of the fiscal year 2083/84 (ending Mid-October 2026).

NIC Asia Q1 Profit Edges Up

The bank reported a modest 4.33 percent growth in net profit, reaching NPR 127.44 million compared to NPR 122.16 million recorded in the corresponding period of the previous fiscal year. However, the institution faces operational headwinds driven by shrinking core interest revenue and rising non-performing assets.

Profitability Performance and Core Revenue Contraction

The bank experienced pressure on its primary income streams, which weighed down total operating income and operational profitability.

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• Net Profit: Reached NPR 127.44 million, growing by 4.33 percent year-on-year from NPR 122.16 million in Q1 FY 2082/83.
• Net Interest Income: Declined by NPR 396.8 million to NPR 1.89 billion, down from NPR 2.29 billion in the baseline quarter.
• Net Fee and Commission Income: Rose slightly to NPR 350.6 million, up from NPR 329.0 million in the baseline period.
• Total Operating Income: Dropped to NPR 2.43 billion, compared to NPR 2.78 billion in Q1 FY 2082/83.
• Operating Profit: Contracted to NPR 161.4 million, down from NPR 193.5 million in the prior year’s first quarter.
• Profit Before Tax: Increased slightly to NPR 182.0 million, up from NPR 174.5 million in the baseline period.

Asset Quality Challenges and Financial Indicators

A significant rise in non-performing loans highlights ongoing credit collection challenges, impacting overall capital adequacy and interest spreads.

• Non-Performing Loan (NPL) Ratio: Surged to 9.81 percent, up by 2.82 percentage points from 6.99 percent in Q1 of the previous fiscal year.
• Capital Adequacy Ratio (CAR): Declined to 11.12 percent, down from 14.03 percent in the baseline quarter.
• Base Rate: Reduced to 5.55 percent from 6.60 percent in the baseline period.
• Cost of Funds: Decreased to 3.78 percent from 4.60 percent.
• Interest Spread Rate: Narrowed to 3.31 percent, down from 3.99 percent.
• Credit to Deposit (CD) Ratio: Stood at 60.22 percent, down from 66.08 percent.

Deposit Mobilization, Lending Portfolio, and Balance Sheet Size

The commercial bank maintained a large deposit mobilization base alongside substantial capital reserves.

• Total Deposit Mobilization: Accumulated to NPR 341.85 billion by the end of the first quarter.
• Total Credit and Advances: Reached NPR 191.20 billion.
• Total Assets: Stood at NPR 389.00 billion during the review period.
• Paid-up Capital: Maintained at NPR 14.92 billion.
• Reserve Fund: Stood at NPR 26.22 billion.

Shareholder Returns and Per-Share Ratios

Despite pressure on core profitability, per-share returns experienced slight upward ticks over the baseline period.

• Earnings Per Share (EPS): Climbed to NPR 3.35, up from NPR 3.21 in the baseline quarter.
• Return on Equity (ROE): Improved to 1.94 percent from 1.62 percent.
• Return on Assets (ROA): Stood at 0.13 percent, compared to 0.12 percent in Q1 FY 2082/83.

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