Kathmandu: Nabil Bank Limited has posted a net profit of Rs 7.13 billion for the fiscal year 2024/25, marking a 15.02 percent increase from the previous year’s Rs 6.20 billion.
The growth was driven mainly by lower provisioning for possible losses, alongside higher net trading income and other operating revenues.
Although provisioning expenses decreased, the bank noted that write-offs of bad loans limited further profit expansion.
During the year, Nabil Bank earned Rs 16.33 billion in net interest income and Rs 3.42 billion in net fees and commissions, while provisioning for possible losses stood at Rs 2.40 billion, down significantly from Rs 4.64 billion in FY 2023/24.
The bank’s net operating income reached Rs 18.61 billion, up from Rs 15.67 billion last year, supported by approximately Rs 1.26 billion in net trading and other operating income. Employee expenses rose notably, and non-operating costs—mainly from loan write-offs—jumped to Rs 577.1 million from just Rs 89.7 million last year.
Nabil’s earnings per share (EPS) climbed from Rs 22.90 to Rs 26.34. Of the total profit, only Rs 4.40 billion can be distributed as dividends due to regulatory reserves, though with accumulated profits from previous years, the distributable total reaches Rs 4.77 billion. Based on a paid-up capital of Rs 27.06 billion, the bank has the capacity to declare a 17.64 percent dividend.
By the end of FY 2024/25, Nabil’s non-performing loans (NPL) ratio had dropped to 4.27 percent, with net NPL at 0.95 percent. The base rate fell from 7.63 percent to 5.83 percent, and the interest rate spread narrowed from 3.99 percent to 3.57 percent.
The core capital adequacy ratio edged up from 9.47 percent to 9.52 percent, net worth per share stood at Rs 235.58, and the price-to-earnings (P/E) ratio was 20.55 times.
The bank mobilized Rs 524.63 billion in deposits and disbursed Rs 412.80 billion in loans, expanding deposits by Rs 62.5 billion and loans by Rs 39 billion over the year.
Key Figures:
Net Profit: Rs 7.13 billion
EPS: Rs 26.34
NPL: 4.27 percent
Core Capital Adequacy: 9.52 percent
Deposits: Rs 524.63 billion
Loans: Rs 412.80 billion
Net Interest Income: Rs 16.33 billion
Provisions: Rs 2.40 billion
Distributable Profit: Rs 4.77 billion
Dividend Potential: 17.64 percent
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