Prime Commercial Bank Q1 Net Profit Drops to NPR 1.18 Billion as Non-Performing Loans Rise to 7.15%

1st November 2026, Kathmandu

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

Prime Bank Profit Drops in Q1 

The bank reported a net profit of NPR 1.18 billion during the review quarter, marking a 5.62 percent decline compared to NPR 1.25 billion earned in the corresponding period of the previous fiscal year. The drop in bottom-line profit was primarily driven by higher impairment charges and reduced operating profit.

Profitability Performance and Core Revenue Growth

Despite the contraction in net earnings, the institution registered positive performance across its core revenue streams, including net interest income and commission fees.

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• Net Profit: Achieved NPR 1.18 billion, down 5.62 percent year-on-year from NPR 1.25 billion in Q1 FY 2082/83.
• Net Interest Income: Expanded by 8.24 percent to NPR 2.60 billion, up from NPR 2.40 billion in the baseline quarter.
• Net Fee and Commission Income: Rose by 12.79 percent to reach NPR 796.9 million.
• Total Operating Income: Increased by 4.62 percent to NPR 3.61 billion.
• Impairment Charges: Expanded significantly to NPR 617.0 million, up from NPR 480.9 million in the prior year’s first quarter.
• Operating Profit: Contracted by 5.48 percent to NPR 1.96 billion.

Deposit Mobilization, Lending Portfolio, and Balance Sheet Expansion

The bank maintained a substantial balance sheet size while continuing credit flow and deposit collection.

• Total Deposit Mobilization: Reached NPR 275.65 billion by the end of the first quarter.
• Total Credit and Advances: Expanded to NPR 235.27 billion.
• Total Assets: Exceeded NPR 338.40 billion during the review period.
• Paid-up Capital: Stood at NPR 20.95 billion.
• Reserve Fund: Accumulated to NPR 14.93 billion.
• Distributable Profit: Maintained at NPR 2.05 billion.

Asset Quality Metrics and Financial Ratios

A rise in loan recovery challenges led to an increase in non-performing loans, impacting shareholder return metrics.

• Non-Performing Loan (NPL) Ratio: Increased to 7.15 percent, up from 5.86 percent recorded in the baseline period.
• Earnings Per Share (EPS): Declined to NPR 22.67, down from NPR 25.94 in Q1 of the previous fiscal year.

For More: Prime Bank Profit Drops in Q1