First Quarter Profit of Commercial Banks: How much did each bank earn?
Author
Dipesh Ghimire
Nepal's commercial banks have published their unaudited financial statements for the first quarter of the fiscal year 2081. The banks have reported a significant increase in total profits, with a combined profit of NPR 16.23 billion, a 21.63% rise compared to the same period last year.
This financial performance shows that while some banks have achieved high profit growth, others have faced declines. Notably, Siddhartha Bank recorded the highest profit growth, while NIC Asia Bank and Rastriya Banijya Bank saw substantial declines.
Total profit increased by 21.63%
Highest profit by Nabil Bank: NPR 2.05 billion
Siddhartha Bank leads profit growth: 791.43% increase
NIC Asia Bank’s profit dropped by 89.06%
Rastriya Banijya Bank’s profit fell by 82.40%
Kumari Bank, Nepal Bank, and Laxmi Sunrise Bank posted notable growth
Overall Profit Growth
The 20 commercial banks in operation collectively earned NPR 16.23 billion in profit during the first quarter of this fiscal year. This marks a 21.63% increase from NPR 13.34 billion earned in the same period last year, indicating an improvement in the overall financial health of the banking sector.
Highest Profit by Nabil Bank
Among the commercial banks, Nabil Bank posted the highest profit. The bank earned NPR 2.05 billion in profit, a 39.97% increase from the same period last year. Nabil Bank has successfully expanded its market share through effective operations.
Significant Profit Growth at Siddhartha Bank
Siddhartha Bank achieved the highest profit growth, with a staggering 791.43% increase. The bank's profit rose from NPR 42.8 million in the first quarter of last year to NPR 382 million this year. This growth reflects the bank’s improved strategies and operational enhancements.
High Performance by Kumari Bank, Nepal Bank, and Laxmi Sunrise Bank
Kumari Bank also recorded significant profit growth, with an increase of 308.50%. The bank’s profit surged from NPR 263.9 million to NPR 1.08 billion. Nepal Bank saw a growth of 322.98%, and Laxmi Sunrise Bank’s profit increased by 420.53%. These banks have strengthened their operations and delivered strong financial results.
Declines at NIC Asia Bank and Rastriya Banijya Bank
NIC Asia Bank reported the largest decline in profit, with an 89.06% drop. The bank’s profit fell from NPR 1.01 billion last year to just NPR 110.5 million this year. Similarly, Rastriya Banijya Bank’s profit decreased by 82.40%, dropping from NPR 859.8 million to NPR 151.3 million. These declines highlight operational challenges faced by these banks.
Fee and Commission Income and Other Indicators
For some banks, the primary contributors to profit growth were net interest income and fee and commission income. Nabil Bank, Global IME Bank, Kumari Bank, and Siddhartha Bank saw improvements in both areas, which helped mitigate risks and stabilize profitability.
Regional Banks’ Performance
While most large banks contributed to profit growth, some regional banks saw declines. Citizens Bank, Machhapuchchhre Bank, and Himalayan Bank experienced drops in profits, indicating a need for operational improvements in these institutions.
Signals of Growth and Challenges
The first-quarter financial performance of Nepal’s commercial banks points to overall improvement in the sector’s financial health. The 21.63% profit growth highlights the stability and future potential of these banks.
However, the declines in profit at NIC Asia and Rastriya Banijya Bank underscore the need for these banks to enhance their operations and strategies to improve profitability. By focusing on risk management, operational strengthening, and customer service, banks can aim for even better profit growth in the future.
This quarterly performance sets the stage for what to expect from the banking sector in the coming months.
