Kathmandu: In the first quarter of the current fiscal year, Nabil Bank has reported a net profit of Rs 1.75 billion.
According to the bank’s unaudited financial statements, this profit represents a decrease compared to the same period in the previous fiscal year. The bank had earned Rs 2.05 billion in profit by the end of Asoj (mid-October) in fiscal year 2025/26.
The decline in profit is attributed to a reduction in net interest income and an increase in provisions for losses. During the three-month period, the bank generated Rs 3.90 billion in net interest income and approximately Rs 800 million in net fee and commission income.
In the same period of the previous fiscal year, the bank had recorded Rs 4.14 billion in net interest income and Rs 750 million in net fee and commission income. By the end of the first quarter, the bank set aside Rs 647 million for loss provisions, which is Rs 190 million more than the Rs 457 million provisioned in the corresponding period last year.
Operating expenses, however, have seen a modest increase.
With the drop in profit, the bank’s earnings per share (EPS) have also decreased. The EPS, which stood at Rs 39.83 at the end of Asoj in the previous fiscal year, is now limited to Rs 25.49.
The bank mobilized Rs 5.56 trillion in deposits and extended Rs 4.21 trillion in loans. Over the three months, deposits increased by Rs 32 billion, while loans grew by an equivalent of Rs 9 billion.
Due to falling interest rates, the bank’s interest income has decreased to Rd 9.80 billion, down by Rs 1 billion from the Rs 10.81 billion earned by the end of Asoj in the previous fiscal year.
In the post-Gen-Z movement environment, the bank appears to have had to increase its loss provisions compared to the previous year. By the end of the quarter, the non-performing loan (NPL) ratio has slightly increased to 4.31 percent, compared to 4.24 percent in the same period last year.
Despite the rise in NPLs, increased provisioning has reduced the net NPL ratio from 1.42 percent to 0.97 percent, as per the financial statements.
At the end of the first quarter, the bank’s core capital ratio has declined to 9.55 percent, while the capital adequacy ratio has slightly increased to 12.67 percent.
The bank maintains a credit-deposit (CD) ratio of 78.14 percent, an interest spread of 3.51 percent, and an average base rate of 5.58 percent over the three months. Additionally, the net worth per share is Rs 240.72, return on equity is 10.70 percent, and the price-to-earnings (P/E) ratio is 19.97.
Over the three months, the bank’s interest arrears have increased, while non-banking assets have decreased. As a result, by the end of the quarter, the bank’s total distributable profit has reached Rs 5.63 billion. The distributable profit for the first quarter alone is Rs 86.22 crore.
Nabil Bank has not yet announced dividends from the profits of the previous fiscal year.
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