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Banks’ profit grow by 11.9 percent

The Annapurna Express

The Annapurna Express

Banks’ profit grow by 11.9 percent

Nabil Bank topped the chart with the highest profit of Rs 3.41 billion

With non-performing assets (NPA) rising, the overall profit of commercial banks has taken a beating in the first half of the current fiscal year. The second quarter report of the 20 commercial banks shows their profit grew by 11.9 percent in the first six months of the current fiscal year 2022/23.

Of the 20 banks that have published their financial reports for the second quarter, 14 have reported an increase in their profits compared to the same period of the last fiscal year. Similarly, six banks have logged a decline in profit while one has reported loss.

Sunrise Bank, Citizens Bank International, Siddhartha Bank, Prime Commercial Bank, Prabhu Bank, and Nepal Bank have reported a decline in their profits. The Agriculture Development Bank reported a loss of Rs 0.128 billion in the first half of the current fiscal.

The banks’ quarterly report shows two banks’ profit has crossed the Rs 3 billion mark while two other banks earned above Rs 2 billion in profit in this fiscal. There are other banks whose profit has crossed the Rs 1 billion mark in the first half of FY 2022/23.

Nabil Bank has topped the chart as the bank’s profit grew by 56.67 percent in the first six months of the current fiscal year. The bank earned Rs 3.41 billion in profit in the first six months of the current fiscal year.

NIC Asia Bank is second on the list with a profit of Rs 3.27 billion, an increment of 36 percent followed by the Global IME Bank which has reported a profit of Rs 2.78 billion. However, Global IME’s profit grew by a meager 4.42 percent in this fiscal.

In terms of percentage growth, Everest Bank has the highest profit growth of 89.49 percent. The bank recorded a profit of Rs 1.58 billion in the first half of this fiscal compared to Rs 0.83 billion in the last fiscal. Standard Chartered Bank’s profit also grew by 61.36 percent to Rs 1.90 billion.

Meanwhile, Agricultural Development Bank’s profit has decreased by a whopping 109.06 percent in the first half of the current fiscal. The bank has incurred a loss of 0.128 billion in the first half of FY 2022/23 compared to a profit of 1.42 billion during the same period of FY 2021/22. The bank’s profit decreased due to an increment in the impairment charges. The bank’s NPA also increased from 2.08 percent to 4.52 percent in this fiscal. According to the bank, it has set aside Rs 2.17 billion for impairment charges, an increment of 250 percent compared to the last fiscal.

 

BANK PROFIT (in Rs, in bn) CHANGE (in percent)
FY 2021/22 FY 2022/23
Nabil Bank 2.181 3.417 56.67
NIC Asia Bank 2.402 3.273 36.27
Global IME Bank 2.663 2.781 4.42
Rastriya Banijya Bank 1.773 2.711 52.88
NMB Bank 1.711 1.901 11.08
Standard Chartered Bank 1.086 1.753 61.36
Prime Commercial Bank 1.678 1.652 -1.58
Everest Bank 0.838 1.588 89.49
Sanima Bank 1.077 1.285 19.31
Prabhu Bank 1.262 1.199 -4.99
Nepal SBI Bank 0.782 1.177 50.51
Nepal Bank 1.417 1.170 -17.43
Siddhartha Bank 1.577 1.161 -26.37
Laxmi Bank 0.817 1.077 31.82
Machhapuchhre Bank 1.010 1.025 1.48
Himalayan Bank 0.743 0.954 28.39
Citizens Bank Intl 1.239 0.841 -32.12
Sunrise Bank 0.745 0.653 -12.34
Civil Bank 0.504 0.637 26.38
Agriculture Development Bank 1.422 -0.128 -109.06