Nepal Bank’s Q4 Net Profit Surges to Rs. 3.77 Arba, Driven by Strong Interest Income and Reduced Loan Loss Provisions
Thu, Aug 14, 2025 7:40 AM on Financial Analysis, Company Analysis, Latest,
Nepal Bank Limited (NBL) reported a strong turnaround in Q4 FY 2081/82, posting net profit of Rs. 3.77 Arba (Rs. 377.30 Crore), a sharp rise from Rs. 2.84 Crore a year earlier. The rebound was driven by healthier core earnings and a steep reduction in impairment charges.
Core income improved, with net interest income at Rs. 10.09 Arba, up 16.82% year-on-year. Impairment charges fell to Rs. 1.14 Arba from Rs. 4.76 Arba, while operating profit reached Rs. 5.42 Arba compared to Rs. 68.35 Crore last year. The cost of funds declined to 3.74% from 5.36%, supporting margins.
On the balance sheet, deposits rose to Rs. 332.02 Arba and loans and advances reached Rs. 221.70 Arba, reflecting annual growth of 17.29% and 13.89%, respectively. Reserves stood at Rs. 23.93 Arba, and paid-up capital remained Rs. 14.69 Arba. Accumulated losses narrowed, with retained earnings at negative Rs. 44.91 Crore, improving from negative Rs. 96.51 Crore last year.
Capital strength improved as the capital adequacy ratio rose to 13.06% from 12.45%. Asset quality was broadly stable, though the NPL ratio edged up to 4.47% from 4.33%. Annualized EPS climbed to Rs. 25.68, and net worth per share increased to Rs. 259.81. At quarter end, the stock traded at Rs. 291.44, implying a P/E of 11.35 times.
Major Financial Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Bank | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 14,694,022.93 | 14,694,022.93* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | -449,089.96 | -965,074.68* | - |
| Reserves | 23,932,048.79 | 21,906,743.17* | 9.25% |
| Deposits | 332,021,047.96 | 283,083,745.21* | 17.29% |
| Borrowings | 0.00 | 0.00 | - |
| Loan and advances to Customers | 221,703,485.87 | 194,667,770.48* | 13.89% |
| Net Interest Income | 10,087,151.82 | 8,634,768.26 | 16.82% |
| Personnel Expenses | 3,966,290.64 | 3,554,770.00 | 11.58% |
| Impairment Charges | 1,135,597.61 | 4,755,258.14 | -76.12% |
| Operating Profit | 5,415,886.20 | 683,453.44 | 692.43% |
| Net Profit | 3,773,008.99 | 28,420.04 | 13175.88% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -449,089.96 | -965,074.68 | - |
| Capital Adequacy (%) | 13.06 | 12.45 | 4.90% |
| NPL% | 4.47 | 4.33 | 3.23% |
| Cost of Fund (%) | 3.74 | 5.36 | -30.22% |
| Annualized EPS (In Rs.) | 25.68 | 0.19 | 13175.88% |
| Net Worth per Share (In Rs.) | 259.81 | 242.52 | 7.13% |
| Qtr end PE Ratio (times) | 11.35 | ||
| Qtr End Market Price | 291.44 | - | - |
