Kathmandu: Everest Bank has posted a significant profit growth in the last fiscal year, driven by reduced loan loss provisions, lower non-performing loans (NPLs), and increased net interest and fee income.
According to the bank’s unaudited financial statements for FY 2024/25, net profit reached Rs 4.91 billion, up 32.81 percent from Rs 3.70 billion in FY 2023/24.
The bank’s business expansion played a key role in the performance. Loans and advances increased 19.87 percent from Rs 178.21 billion in Asar 2081 (mid-July 2024) to Rs 213.62 billion in Asar 2082 (mid-July 2025). Deposits rose 28.63 percent, from Rs 232.31 billion to Rs 298.81 billion during the same period.
Despite the increase in both lending and deposits, net interest income rose 19.36 percent from Rs 7.64 billion to Rs 9.12 billion. Fee and commission income grew from Rs 1.34 billion to Rs 1.53 billion, while net trading income increased from Rs 353.7 million to Rs 499.4 million.
With overall income rising and NPLs falling, the bank reduced its loan loss provisioning compared to the previous year. While Everest Bank had set aside Rs 282.4 million for loan losses in FY 2023/24, it recorded a provision write-back of Rs 161.7 million in FY 2024/25. The gross NPL ratio dropped from 0.71 percent to 0.38 percent, contributing to the profit surge.
Operating profit jumped 31.63 percent from Rs 5.66 billion to Rs 7.45 billion.
However, despite the improvement in NPLs, accrued interest yet to be recovered increased. The bank transferred Rs 210.3 million from profit to regulatory reserves due to uncollected interest.
Everest Bank generated Rs 3.30 billion in distributable profit for the year, bringing total retained earnings available for distribution — including previous years — to Rs 4.95 billion. This gives the bank a dividend distribution capacity of 38.27 percent.
From the previous year’s profit, the bank had issued a 10 percent bonus share, raising paid-up capital to Rs 12.94 billion. With higher profits, earnings per share (EPS) rose from Rs 31.47 to Rs 37.99, while net worth per share stood at Rs 247.39.
The price-to-earnings (P/E) ratio was 18.47 times. The core capital adequacy ratio stood at 10.42 percent and the total capital adequacy ratio at 13.28 percent. The CD ratio fell to 77.48 percent, and the base rate decreased to 5.36 percent.
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