Commercial banks report 13.4 percent net profit growth

Commercial banks in the country earned a combined net profit of Rs 64.15bn in the fiscal year 2023/24. This represents a 13.4 percent increase from the net profit of Rs 56.57bn reported by 20 commercial banks in the fiscal year 2022/23.

A study of financial statements for fiscal year 2023/24 reported by the commercial banks show 10 commercial banks saw their net profits rise, while the remaining 10 reported a decline compared to 2022/23.

Nabil Bank Ltd recorded the highest net profit of Rs 7.06bn in 2023/24, which is 10.23 percent more than the previous year. Global IME Bank followed with a net profit of Rs 6.01bn, marking a 10.23 percent decrease from 2022/23. Nepal Investment Mega Bank Ltd came in third with a net profit of Rs 5.19bn, reflecting a 39 percent increase from the previous year.

Likewise, Prabhu Bank Ltd reported a 1,500 percent increase in its net profit. The Class ‘A’ bank made a net profit of Rs 4.48bn in 2023/24, up from Rs 280.21m in 2022/23.

Prime Commercial Bank Ltd earned a net profit of Rs 3.45bn in 2023/24, a 267 percent growth from Rs 1.02bn in 2022/23. Likewise, Kumari Bank saw a 346 percent increase in its net profit, reaching Rs 2.3bn, while the state-owned Agricultural Development Bank Ltd reported a net profit of Rs 3.65bn, up by 176 percent compared to 2022/23.

Laxmi Sunrise Bank’s net profit grew by 40 percent to Rs 3.03bn, while Himalayan Bank Ltd earned a net profit of Rs 2.83bn, an 81 percent increase compared to 2022/23. Everest Bank Ltd also saw its net profit go up by 10 percent to Rs 3.70bn in 2023/24. Nepal SBI Bank saw a 2.35 percent increase in its net profit, reaching Rs 2.01bn in 2023/24

However, Standard Chartered Bank Nepal reported a 4.51 percent decrease in its net profit to Rs 3.30bn. NIC Asia Bank followed suit, with a significant 68 percent drop to Rs 1.38bn in 2023/24.

Similarly, state-owned Nepal Bank Limited experienced a 52 percent decline in net profit to Rs 1.66bn. NMB Bank’s profit fell by 27.49 percent to Rs 2.33bn, while Citizens Bank International saw a 27.97 percent decrease to Rs 1.34bn.

Sanima Bank’s net profit also declined by 8.59 percent to Rs 2.38bn, while state-owned Rastriya Banijya Bank Ltd earned Rs 3.39bn, marking a 5.48 percent decrease compared to 2022/23.

Siddhartha Bank Ltd and Machhapuchhre Bank Ltd experienced declines of 4.51 percent and 23 percent, respectively, with net profits of Rs 3.01bn and Rs 1.25bn.