Nabil Bank’s Net Profit Declines by 14.57% to Rs. 1.75 Arba in Q1 FY 2082/83; Net Interest Income at Rs. 3.90 Arba
Thu, Nov 6, 2025 11:28 AM on Financial Analysis, Company Analysis, Highlight News,
Nabil Bank Limited (NABIL) reported a net profit of Rs. 1.75 arba in the first quarter of FY 2082/83, marking a 14.57% decline compared to Rs. 2.05 arba recorded in the same period of the previous fiscal year. The decline in profit was mainly driven by a decrease in net interest income and an increase in impairment charges.
The bank’s net interest income fell by 5.77% to Rs. 39.01 arba from Rs. 41.40 arba in the corresponding quarter last year. Operating profit also decreased by 10.84% to Rs. 25.79 arba, while impairment charges surged by 41.40% to Rs. 6.47 arba. Personnel expenses rose slightly by 3.41% to Rs. 14.78 arba.
Despite the drop in profitability, Nabil’s deposits grew by 6.10% to Rs. 5.56 kharba, while loans and advances increased by 1.99% to Rs. 4.21 kharba. The bank’s reserves inched up by 1.66% to Rs. 32.44 arba, and retained earnings improved by 18.06% to Rs. 5.63 arba.
The capital adequacy ratio stood at 12.67%, slightly higher than 12.64% in the same period last year. The cost of funds declined by 22.22% to 4.13%, reflecting better cost management. Earnings per share (EPS) stood at Rs. 25.97, down from Rs. 30.40, while the net worth per share remained stable at Rs. 100.14.
Nabil Bank’s distributable profit after regulatory adjustments rose by 13.13% to Rs. 5.63 arba. The bank’s share traded at Rs. 509 at the end of the quarter, with a price-to-earnings (P/E) ratio of 19.60 times.
Report:
Major Financial Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nabil Bank | ||
|---|---|---|---|
| Q1 2082/83 | Q1 2081/82 | Difference | |
| Paid Up Capital | 27,056,997.00 | 27,056,997.00* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 5,635,298.00 | 4,773,059.00* | 18.06% |
| Reserves | 32,439,874.00 | 31,909,517.00* | 1.66% |
| Deposits | 556,618,505.00 | 524,625,959.00* | 6.10% |
| Loans & Advances | 421,026,606.00 | 412,795,547.00* | 1.99% |
| Net Interest Income | 3,901,260.00 | 4,140,285.00 | -5.77% |
| Personnel Expenses | 1,478,551.00 | 1,429,834.00 | 3.41% |
| Impairment Charges | 647,227.00 | 457,727.00 | 41.40% |
| Operating Profit | 2,579,886.00 | 2,893,459.00 | -10.84% |
| Net Profit | 1,756,991.00 | 2,056,590.00 | -14.57% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 5,635,298.00 | 4,981,236.00 | 13.13% |
| Capital Adequacy (%) | 12.67 | 12.64 | 0.24% |
| Cost of Fund (%) | 4.13 | 5.31 | -22.22% |
| EPS (In Rs.) | 25.97 | 30.40 | -14.57% |
| Net Worth per Share (In Rs.) | 240.72 | 235.58 | 2.18% |
| Qtr end PE Ratio (times) | 19.60 | ||
| Qtr End Market Price | 509 | - | - |
