20th January 2025, Kathmandu
Prabhu Bank Limited has reported a significant increase in profit for the second quarter of the current fiscal year. The bank’s net profit has risen by an impressive 85.49% compared to the same period last year, according to the unaudited financial statement released by the bank.
Prabhu Bank Nepal Q2 Profit Growth
Higher Profit Figures
For the period mid-January, the bank earned a net profit of NPR 1.34 billion (1,33,61,00,000), marking a notable rise from the previous year’s net profit of NPR 728.5 million (7,28,50,000). The bank attributes this growth to a rise in interest income and a reduction in impairment charges.
Improvement in Operating Income
The bank’s interest income grew by 2.12%, while fee and commission income saw a rise of 17.18%. The total operating income also increased by 11.10%. These factors played a key role in boosting the overall profitability.
Reduced Impairment Charges
Prabhu Bank benefited from a significant reduction in impairment charges, which dropped from NPR 1.26 billion (1,25,77,00,000) to NPR 814.2 million (8,14,20,000). This decrease contributed to a 45.95% increase in the bank’s operating profit.
Improvement in Earnings Per Share
The bank’s earnings per share (EPS) increased by NPR 5.23, reaching NPR 11.35 per share. The net worth per share also rose to NPR 144.79. The price-to-earnings ratio stood at 19.36 times as of mid-January.
Capital and Reserves
Prabhu Bank’s paid-up capital reached NPR 23.54 billion (23,54,24,90,000), while its reserve fund stood at NPR 10.54 billion (10,54,49,00,000). The bank’s distributable profit for the period is reported to be a negative NPR of 3.33 billion (3,33,13,00,000).
Deposits and Loan Investments
The bank’s total deposit collection for the period was NPR 300.4 billion (3 Kharab 4 Arab), with loan investments reaching NPR 219.4 billion (2 Kharab 19 Arab). Despite a rise in non-performing loans, which increased by 0.16 percentage points to 5.06%, the bank’s overall financial health remains strong.
Sustained Growth and Market Position
Prabhu Bank’s performance reflects its focus on operational efficiency and financial stability. The bank continues to maintain strong capital reserves while expanding its presence in the banking sector. The solid performance strengthens its position as a key player in Nepal’s banking industry.
Conclusion
The growth in profits and overall strong financial standing demonstrates the bank’s resilience and ability to overcome challenges. Moving forward, Prabhu Bank is focused on providing enhanced services and delivering long-term value to its customers and stakeholders.
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