All commercial banks have unveiled their quarterly reports for the third quarter (Q3) of the fiscal year 2077/78.
There are a total of 27 commercial banks in the country. Of the 27 commercial banks, 26 are listed on the stock exchange while Rastriya Banijya Bank is not.
Commercial banks went through a lot in the past few months. The banks had to tackle piling liquidity during and in the aftermath of the pandemic, a result of increasing deposits and decreasing lending. In order to minimize profit margin cuts via interest payment, commercial banks have been slashing interest rates ever since.
Despite all odds, commercial banks have published fairly satisfactory quarterly reports. The combined performance by the commercial banks is applaudable, with the 27 banks reporting an average 11% increase in net profit in the third quarter of this fiscal year compared to the third quarter of the previous fiscal year.
Kumari Bank Limited (KBL) witnessed the highest spike in net profit in this quarter compared to the corresponding quarter of the previous fiscal year. The net profit of the bank stands at Rs. 1.8 arba which is 78.6% higher than the figure reported in the third quarter of the fiscal year 2076/77.
Meanwhile, the industry giant Nabil Bank Limited (NABIL) has reported the highest monetary amount of net profit this quarter. The net profit of the bank stands at Rs. 3.67 arba which is a 16.5% rise from its own net profit for the corresponding period of the previous fiscal year.
However, things weren't all bright and sunny for all commercial banks. Five commercial banks have reported a fall in net profit when compared with the figure reported in the corresponding period of the previous fiscal year. From this viewpoint, Century Commercial Bank Limited (CCBL) has reported the highest fall of 60.9%.
Nonetheless, the commercial banks have rung the closing bell for the third quarter this year with a combined net profit of Rs. 50.74 arba.
Commercial banks have a combined worth of Rs. 35.43 arba in distributable profits by the end of the third quarter.
Many commercial banks had reported a negative distributable profit in the corresponding period of the previous fiscal year. In contrast, all banks have reported positive figures this time. Nepal Bangladesh Bank Limited (NBB) has reported the highest spike in its distributable profit figure. With a distributable profit of Rs. Rs. 98.32 crore at the end of this year's third quarter, the bank has seen a massive 3,409.7% surge in its distributable profit figure.
Summing up, the commercial banks have performed fairly well, with an impressive average rise of 195.1% in distributable profits compared to the corresponding period of the previous fiscal year.