Rastriya Banijya Bank’s Annual Profit Jumps 49.53% on Strong Interest and Operating Income Growth

Rastriya Banijya Bank Limited (RBB) has reported a significant rise in profitability for the fiscal year 2081/82, with net profit reaching NPR 3.81 billion, up 49.53% compared to NPR 2.55 billion in the previous fiscal year. The improvement is supported by increases in net interest income, total income, and operating profit, alongside a turnaround in distributable profit and an improvement in asset quality.

Interest and Total Income Growth Drive Profits
During the review period, the bank’s net interest income rose from NPR 10.03 billion to NPR 10.08 billion, reflecting steady growth despite a challenging interest rate environment. Total income increased from NPR 11.54 billion to NPR 12.84 billion, showing stronger earnings from core banking activities.

Operating Profit Rises Over 31%
Operating profit surged 31.59%, climbing from NPR 4.09 billion to NPR 5.38 billion. This expansion highlights improved cost management and revenue optimization, which played a key role in boosting bottom-line profitability.

Distributable Profit Turns Positive
One of the notable improvements was in distributable profit. The bank moved from a negative NPR 1.22 billion in the previous fiscal year to a positive NPR 303.4 million, indicating better capital efficiency and stronger retained earnings.

Earnings Per Share and Asset Quality
Earnings per share (EPS) improved from NPR 16.32 to NPR 24.41, reflecting the higher profit base. Asset quality also strengthened, with the non-performing loan (NPL) ratio declining from 4.28% to 3.59%, suggesting better loan book performance and risk management.

Capital Position
RBB’s paid-up capital stands at NPR 15.63 billion, with reserves of NPR 37.47 billion, providing a strong capital cushion to support future growth.

Rastriya Banijya Bank’s FY 2081/82 performance reflects solid financial health, with improvements across profitability, operational efficiency, and asset quality. The turnaround in distributable profit from a negative to a positive figure marks an important step towards greater shareholder value creation. However, with only marginal growth in net interest income, future earnings expansion will depend on diversifying income sources, further optimizing costs, and maintaining asset quality in a competitive banking environment.