20th April 2025, Kathmandu
Sanima Bank Limited has published its unaudited financial results for the third quarter of the current fiscal year 2081/82, ending Chaitra (mid-April 2025).
Sanima Bank Q3 Result Nepal
The bank posted a strong performance, reporting a net profit of NPR 1.65 billion, which marks a 14.80% growth compared to the same period in the previous fiscal year.
Net Profit Growth Driven by Lower Impairment Charges
Last year, the bank earned NPR 1.49 billion in net profit during the third quarter. This year, the figure rose to NPR 1.65 billion, supported mainly by a reduction in impairment charges. The impairment charge declined from NPR 1.59 billion in Q3 of the previous fiscal year to NPR 1.40 billion this year, contributing significantly to the bottom-line growth.
Operating Profit Sees Notable Rise
The bank’s operating profit increased by 9.12%, climbing from NPR 2.06 billion to NPR 2.25 billion. This indicates efficient management and robust operational performance, even as other income metrics faced some pressure.
Decline in Net Interest Income
While profits grew, the net interest income (NII) of the bank witnessed a decline. It dropped by 6.52%, from NPR 4.58 billion in the corresponding period last year to NPR 4.28 billion this fiscal year. Despite this decline, the bank managed to sustain its overall profitability through improved cost management and other income streams.
Earnings Per Share and Net Worth Improve
As of the end of the third quarter, Sanima Bank’s Earnings Per Share (EPS) rose to NPR 16.33, up from NPR 14.27 last year. This increase of NPR 2.06 per share is reflective of the bank’s stronger financial positioning. Similarly, the Net Worth Per Share stood at NPR 161.32.
Capital and Reserve Position
The bank’s paid-up capital is currently at NPR 13.58 billion. It has maintained a reserve fund of NPR 6.12 billion and a retained earnings/fund (distributable profit) of around NPR 2.20 billion. Additionally, the statutory reserve of the bank stood at NPR 2.19 billion.
Fee and Commission Income Reaches NPR 1 Billion
Apart from interest income, Sanima Bank earned NPR 1 billion from fees and commission income, which has contributed positively to the total income figure and helped counterbalance the fall in net interest income.
Asset Quality: Rise in Non-Performing Loans
The bank’s Non-Performing Loan (NPL) ratio increased from 1.89% to 3.42% in the review period, signaling a potential concern in asset quality. Despite this rise, the bank continues to maintain a core capital adequacy ratio (Tier 1 capital) of 9.54%, in compliance with regulatory requirements.
Conclusion: Strong Financial Health Amid Pressure on Interest Margins
Sanima Bank’s Q3 financial results reflect a solid profit growth, improved operating efficiency, and enhanced earnings per share, despite a drop in interest income and a rise in NPLs. With strong capital reserves and retained earnings, the bank appears well-positioned to deliver stable returns to its shareholders.
As Nepal’s banking sector evolves with digital transformation and increased regulatory scrutiny, Sanima Bank continues to demonstrate resilience, adaptability, and a commitment to sustainable growth.
For more: Sanima Bank Q3 Result Nepal