Siddhartha Bank’s Financial Health: A Deep Dive into FY 2024/25
8th August 2025, Kathmandu
Siddhartha Bank has announced its financial results for the fourth quarter of the fiscal year 2024/25, revealing a strong performance with a net profit exceeding NPR 3.39 billion.
SBL Fourth Quarterly Results
This marks a 10.24% increase from the previous year. The bank has also reported a dividend capacity of over 13%, highlighting its ability to provide returns to shareholders.
Siddhartha Bank’s Financial Health: A Deep Dive into FY 2024/25
Siddhartha Bank Limited, a key player in Nepal’s commercial banking sector, has demonstrated robust performance in its fourth-quarter financial statement for the fiscal year 2081/82. The report reveals a strong growth trajectory, driven by effective operational strategies and a keen focus on core banking activities. The bank’s ability to increase its profitability despite a challenging economic environment is a testament to its resilience and sound financial management. These results are of significant interest to investors, analysts, and anyone following the performance of commercial banks in Nepal.
Key Financial Highlights: Profits, Income, and Dividend Capacity
Siddhartha Bank’s financial results are marked by several positive indicators. The bank’s net profit reached NPR 3.39 billion, a notable 10.24% increase compared to the NPR 3.08 billion recorded in FY 2080/81. This consistent rise in profitability is a clear sign of the bank’s healthy growth and efficient operations. It is important to note that while the distributable profit shows a negative balance of NPR 1.86 billion due to regulatory adjustments, the bank’s strong performance has enabled it to build a dividend distribution capacity of 13.22%, offering a promising return for shareholders. This capacity is a key metric for investors, as it indicates the bank’s ability to reward its stakeholders despite a complex regulatory landscape.
The bank’s operational performance also saw a significant improvement. Its operating profit grew to NPR 5.02 billion, up from NPR 4.48 billion in the previous fiscal year, a 12.16% increase. This growth is a direct result of increased revenue from core banking services and a disciplined approach to cost management. The bank’s interest income also climbed to NPR 8.43 billion, a 6.43% year-over-year increase. This growth in interest income, a primary revenue source for any bank, is attributed to a strategic expansion of its loan portfolio and an effective interest rate policy that aligns with both market demands and regulatory guidelines.
Capital and Asset Management: A Foundation for Stability
Siddhartha Bank’s financial health is further supported by a strong capital and reserve base. The bank’s paid-up capital stands at NPR 14.08 billion, while its reserves have grown to NPR 15.04 billion. This growth in reserves, up from NPR 13.39 billion in the previous year, provides a significant financial cushion against potential economic downturns and other unforeseen risks. A robust reserve base is a key indicator of a bank’s stability and its long-term sustainability. It allows the bank to manage its financial obligations effectively and to invest in strategic initiatives for future growth.
On the lending and deposit side, the bank has seen impressive growth. Customer deposits increased to NPR 280.32 billion, compared to NPR 241.32 billion in the previous year. Similarly, its loan portfolio expanded, with NPR 214.54 billion disbursed in loans, up from NPR 195.47 billion a year earlier. This growth in both deposits and loans reflects the bank’s expanding market reach and its strong customer base, reinforcing its position as a trusted financial institution in Nepal.
Challenges and Future Outlook: Managing NPLs
While Siddhartha Bank’s performance is largely positive, the financial statement also reveals a challenge in the form of a rise in its Non-Performing Loans (NPLs). The NPL ratio increased to 2.62% from 2.176% in the previous year. This rise, while still within the regulatory limits set by Nepal Rastra Bank, suggests a slight deterioration in asset quality, likely influenced by broader economic headwinds. The bank’s management is expected to take proactive measures to address this issue, focusing on risk management and improving loan recovery processes in the upcoming fiscal year.
Despite this challenge, other key financial indicators remain strong. The bank’s Earnings Per Share (EPS) increased to NPR 24.10, up from NPR 21.86 last year. This is a crucial metric for investors, as it represents the portion of the bank’s profit allocated to each outstanding share. The Price to Earnings (PE) Ratio stands at 15.93 times, suggesting a fair market valuation. Finally, the Net Worth Per Share of NPR 219.97 reflects a sound capital base and a sustainable financial foundation for the bank’s continued operations.
In conclusion, Siddhartha Bank’s fourth-quarter results for FY 2081/82 paint a picture of a strong, growing, and well-managed financial institution. With a healthy profit margin, a solid dividend capacity, and a clear strategic direction, the bank is well-positioned to navigate future challenges and continue its growth trajectory in Nepal’s dynamic banking industry.
For More: SBL Fourth Quarterly Results
