GBBL

By Sandeep Chaudhary

Garima Bikas Bank Q4: Revenue Down YoY but Profit Strengthens with Solid Margins

Published on August 22, 2025

Garima Bikas Bank (GBBL) has published its Q4 audited report for FY 2024/25, showing weaker revenue growth but an improvement in net profit and earnings per share.

The bank posted total revenue of Rs. 8.42 billion, a -14.00% YoY decline compared to Rs. 10.25 billion in Q4 2023/24. Sequentially, revenue also remained lower than earlier quarters, reflecting subdued lending and interest income.

Gross profit stood at Rs. 3.64 billion, maintaining a gross margin of 43.26%, slightly better than last year’s 33.79%, indicating improved cost management.

Net income rose to Rs. 1.31 billion, up from Rs. 1.13 billion a year ago (+15.3% YoY). Sequentially, profit more than doubled from Q1’s Rs. 225.74 million, reflecting a strong recovery. The net margin improved to 15.56%, compared to 11.08% last year.

Profitability ratios were steady. ROA stood at 1.32%, almost unchanged from last year, while ROE remained strong at 14.65%, broadly in line with the sector average.

Earnings per share (EPS) increased to Rs. 23.07, compared to Rs. 20.00 a year earlier. The P/E ratio dropped to 18.57, reflecting a more attractive valuation than the prior year’s 19.25.

On the balance sheet side, book value per share stood at Rs. 164.17, while the market price was Rs. 428.36, trading at about 2.6x its book value.

In terms of asset quality, NPLs rose to 4.72%, compared to 2.89% last year, showing some deterioration. However, loan loss provision coverage was 107.58%, sufficient to cover bad loans.

The bank’s cost of funds declined to 4.84% from 6.64% a year ago, helping profitability. Its net interest spread stood at 4.37%, while the credit-to-deposit ratio was 85.13%, well within NRB norms.

The company did not declare a dividend in Q4, compared to Rs. 5.00 per share last year.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

Prabhu Insurance (PRIN) has published its audited Q4 2024/25 results, showing weaker performance compared to last year. The company’s total revenue fell by 25.70% YoY to Rs. 962.10 million, while net income dropped sharply by 56.8% to Rs. 211.96 million. Profit margins compressed, with net margin declining to 22.03% from 48.47% a year ago. Similarly, returns weakened as ROA slipped to 3.24% and ROE to 6.38%, both well below last year’s levels. Earnings per share also fell significantly to Rs. 14.70 from Rs. 34.05, while the P/E ratio jumped to 61.89, indicating the stock remains highly valued despite reduced profitability. On the balance sheet side, book value per share improved to Rs. 325.91, and the market value per share closed at Rs. 910, showing that PRIN trades at nearly 2.8 times its book value. Operationally, the company issued 123,873 policies, almost flat YoY, while renewed policies rose 27.95%. Claims paid fell by 24.96%, but outstanding claims increased, raising some concerns. Although PRIN had distributed Rs. 18.95 per share in dividend earlier, the steep decline in profitability could pressure future payouts. Overall, the insurer shows stable topline operations but is facing profitability and efficiency challenges despite maintaining high market valuations.

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NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) reported Q4 FY 2024/25 revenue of Rs. 522.31 million (-9.09% YoY) but a net loss of Rs. 198.97 million. Gross profit margin stood at 28.77%, while net margin was deeply negative at -38.09%. ROA and ROE were -3.58% and -13.83% respectively. EPS came in at -Rs. 11.89, with book value declining to Rs. 80.83. Despite ongoing losses, CITY’s market value per share jumped to Rs. 873.65, suggesting that investors are pricing in long-term tourism recovery prospects.

Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

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Prime Commercial Bank Q4 Results: Strong Profitability Despite Revenue Slowdown

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Nepal Investment Bank (NIMB) reported Q4 revenue of Rs. 36.10 billion (-11.22% YoY) but net income surged 29.9% to Rs. 6.75 billion, with margins strengthening to 18.72%. ROE stood at 10.57% and EPS at Rs. 19.80, reflecting robust profitability. NPL ratio inched up to 5.85%, but loan-loss coverage improved to 108.87%. Lower cost of funds and strong liquidity supported earnings. Market value per share rose to Rs. 231.02, highlighting investor confidence.

Garima Bikas Bank Q4: Revenue Down YoY but Profit Strengthens with Solid Margins

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