Kathmandu: Prabhu Bank Limited has reported a net profit of Rs 5.44 billion for the fiscal year 2024/25, representing a more than tenfold increase compared to Rs 510.9 million in the previous year.
The sharp rise in profitability comes despite lower income, driven largely by a significant reversal of loan-loss provisions.
The bank earned Rs 7.19 billion in net interest income during the year, down from Rs 11.89 billion in FY 2023/24. Net fee and commission income stood at Rs 2.12 billion, slightly higher than Rs 1.91 billion the year before. However, the key turnaround factor was a Rs 2.51 billion provision write-back, compared to a hefty Rs 4.72 billion provisioning expense in the prior year.
Including around Rs 1.15 billion in net trading and other operating income, Prabhu Bank’s total net operating income reached Rs 13.08 billion, up from Rs 9.82 billion a year earlier. Operating expenses remained stable, while non-operating expenses totaled Rs 200 million.
The profit surge has dramatically boosted the bank’s earnings per share (EPS) from Rs 2.47 at the end of Ashad 2081 (mid-July 2024) to Rs 23.12 at the end of Ashad 2082 (mid-July 2025).
During the year, the bank recovered Rs 1.52 billion in overdue interest from regulatory reserves and added Rs 320 million to the fund through booking non-banking assets. Out of the Rs 5.44 billion profit, approximately Rs 4.07 billion is eligible for dividend distribution.
However, after adjusting for a retained loss of Rs 3.02 billion from previous years, distributable earnings as of Ashad 2082 stand at Rs 1.04 billion. Based on its paid-up capital of Rs 23.54 billion, the bank’s dividend distribution capacity is estimated at 4.44 percent.
As of Ashad 2082, Prabhu Bank’s non-performing loan (NPL) ratio rose slightly to 4.96 percent, with net NPL at 0.93 percent. The base rate fell from 8.02 percent to 6.67 percent, and the interest rate spread narrowed from 3.97 percent to 3.73 percent.
The capital adequacy ratio improved significantly from 8.70 percent to 10.19 percent, net worth per share stood at Rs 162, and the price-to-earnings (P/E) ratio was 9.60.
By fiscal year-end, Prabhu Bank had mobilized Rs 342.19 billion in deposits and disbursed Rs 230.37 billion in loans, expanding deposits by Rs 42 billion and loans by Rs 37 billion over the past year.
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