NIFRA’s Net Profit Drops by 13.86% in Q4 FY 2081/82 Despite Massive Growth in Deposits
Wed, Jul 23, 2025 9:11 AM on Financial Analysis, Company Analysis, Latest,
Nepal Infrastructure Bank Limited (NIFRA) has reported a net profit of Rs. 1.14 arba in the fourth quarter of Fiscal Year 2081/82, reflecting a decline of 13.86% compared to Rs. 1.32 arba earned during the same period last fiscal year.
The drop in profitability came despite significant improvements in other financial indicators. The bank's reserves and surplus surged by 39.48% to Rs. 4.07 arba. However, net interest income fell by 25.51%, amounting to Rs. 1.89 arba against Rs. 2.55 arba in Q4 2080/81.
Deposits grew exponentially by 826.65%, reaching Rs. 7.68 arba, up from just Rs. 82.98 crores last year. Loans and advances also rose by 18.90%, totaling Rs. 24.80 arba, compared to Rs. 20.86 arba in the previous year.
The bank's personnel expenses declined by 11.96% to Rs. 25.32 crores. Impairment charges saw a reversal of Rs. 4.42 crores this quarter, contrasting with a provisioning charge of Rs. 31.08 crores in the previous year. Operating profit stood at Rs. 1.64 arba, down by 13.69%.
Distributable profit after P/L appropriation and regulatory adjustments rose significantly to Rs. 1.17 arba, marking a 76.09% increase from Rs. 66.79 crores in the previous fiscal year.
NIFRA's capital adequacy ratio decreased to 78.23% from 91.68%, while the cost of fund improved to 6.51%, down from 7.65%. Annualized Earnings per share (EPS) declined to Rs. 5.30 from Rs. 6.16. Meanwhile, net worth per share improved slightly to Rs. 118.88, showing a 4.71% rise.
The quarter-end PE ratio stood at 53.10 times, with a closing market price of Rs. 281.63.
| Particulars (In Rs '000) | Nepal Infrastructure Bank Limited | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 21,600,000.00 | 21,600,000.00 | 0.00% |
| Reserves and Surplus | 4,077,103.00 | 2,923,024.00 | 39.48% |
| Deposits | 7,689,896.00 | 829,856.00 | 826.65% |
| Loans & Advances | 24,809,387.00 | 20,864,986.00 | 18.90% |
| Net Interest Income | 1,899,858.00 | 2,550,445.00 | -25.51% |
| Personnel Expenses | 253,199.00 | 287,597.00 | -11.96% |
| Impairment Charges | -44,284.00 | 310,848.00 | - |
| Operating Profit | 1,640,208.00 | 1,900,386.00 | -13.69% |
| Net Profit | 1,145,543.00 | 1,329,841.00 | -13.86% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 1,176,163.00 | 667,940.00 | 76.09% |
| Capital Adequacy (%) | 78.23 | 91.68 | -14.67% |
| Cost of Fund (%) | 6.51 | 7.65 | -14.90% |
| Annualized EPS (In Rs.) | 5.30 | 6.16 | -13.86% |
| Net Worth per Share (In Rs.) | 118.88 | 113.53 | 4.71% |
| Qtr end PE Ratio (times) | 53.10 | - | - |
| Qtr End Market Price | 281.63 | - | - |
