Nepal Bank’s Profit Surges 46.20% to Rs. 4.50 Arba, EPS Climbs to Rs. 30.63
Sun, Aug 16, 2026 1:07 PM on Financial Analysis, Highlight News, Company Analysis,
Nepal Bank Limited (NBL) has reported a strong improvement in its financial performance in the fourth quarter of FY 2082/83, posting a net profit of Rs. 4.50 Arba, up 46.20% from Rs. 3.08 Arba recorded in the corresponding quarter of the previous fiscal year.
The bank’s profitability improved despite a slight decline in net interest income. Net interest income stood at Rs. 10.03 Arba, compared to Rs. 10.14 Arba a year earlier, marking a 1.05% decline. However, operating profit surged 61.68% to Rs. 7.19 Arba from Rs. 4.45 Arba, supporting the overall rise in earnings.
Nepal Bank recorded significant growth in its balance sheet during the review period. Total deposits increased 25.02% year-on-year to Rs. 415.18 Arba from Rs. 332.09 Arba. Similarly, loans and advances rose 10.47% to Rs. 243.59 Arba from Rs. 220.50 Arba.
The bank’s reserves also increased by 3.74% to Rs. 25.25 Arba from Rs. 24.34 Arba. Paid-up capital remained unchanged at Rs. 14.69 Arba.
The bank witnessed a notable improvement in retained earnings, which stood at positive Rs. 2.33 Arba in Q4 FY 2082/83 compared to negative Rs. 1.42 Arba in the previous year. The distributable profit after profit/loss appropriation and regulatory adjustments also stood at Rs. 2.33 Arba, compared to a loss of Rs. 1.42 Arba a year earlier.
Nepal Bank’s cost of funds declined to 2.92% from 3.74% in the previous year, representing a 21.93% reduction. The lower cost of funds helped support the bank’s overall profitability despite the marginal decline in net interest income.
Personnel expenses, however, increased 16.55% to Rs. 4.50 Arba from Rs. 3.86 Arba.
The bank’s capital adequacy ratio improved to 13.66% from 12.43%, indicating a stronger capital position. Meanwhile, earnings per share (EPS) increased significantly to Rs. 30.63 from Rs. 20.95, representing a 46.20% rise.
Net worth per share also climbed 12.38% to Rs. 287.70 from Rs. 256.00.
At the end of the quarter, Nepal Bank’s market price stood at Rs. 261.60 per share, with a quarter-end price-to-earnings (P/E) ratio of 8.54 times.
Major Financial Highlights:
| Particulars (In Rs '000) | Nepal Bank Limited | ||
| Q4 2082/83 | Q4 2081/82 | Difference | |
| Paid Up Capital | 14,694,022.93 | 14,694,022.93 | 0.00% |
| Retained Earnings | 2,327,960.91 | -1,418,553.09 | -264.11% |
| Reserves | 25,252,123.68 | 24,341,186.73 | 3.74% |
| Deposits | 415,182,034.29 | 332,092,373.05 | 25.02% |
| Loans & Advances | 243,590,656.23 | 220,499,777.92 | 10.47% |
| Net Interest Income | 10,033,060.54 | 10,139,287.24 | -1.05% |
| Personnel Expenses | 4,499,196.59 | 3,860,396.59 | 16.55% |
| Operating Profit | 7,191,464.39 | 4,447,992.16 | 61.68% |
| Net Profit | 4,500,199.27 | 3,078,030.92 | 46.20% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 2,327,960.91 | -1,418,553.09 | -264.11% |
| Capital Adequacy (%) | 13.66 | 12.43 | 9.90% |
| Cost of Fund (%) | 2.92 | 3.74 | -21.93% |
| EPS (In Rs.) | 30.63 | 20.95 | 46.20% |
| Net Worth per Share (In Rs.) | 287.70 | 256.00 | 12.38% |
| Qtr end PE Ratio (times) | 8.54 | ||
| Qtr End Market Price | 261.6 | - | - |
