Signs of economic improvement have begun to reflect in the balance sheets of Nepal’s commercial banks, with key financial indicators showing notable gains and profits on the rise. Several banks have already published their financial statements for the fiscal year 2081/82 (2024/25), reporting substantial growth compared to the previous year.
The 10 commercial banks that have disclosed results so far posted a combined net profit of approximately NPR 32.5 billion, marking a 34.20% increase from the previous fiscal year. In monetary terms, profits were up by NPR 8.25 billion compared to the NPR 24.12 billion earned in FY 2080/81. The rise in profitability is largely attributed to improvements in non-performing loans and Nepal Rastra Bank’s flexible monetary policy.
So far, Everest Bank, Sanima Bank, Agricultural Development Bank, Citizens Bank, Siddhartha Bank, Kumari Bank, Machhapuchchhre Bank, NMB Bank, Nabil Bank, and Himalayan Bank have released their annual results.
- Nabil Bank topped the list with a net profit of NPR 7.12 billion, up 15.01% from NPR 6.19 billion in the previous year.
- Everest Bank earned NPR 4.91 billion, a 32.80% rise from NPR 3.70 billion.
- Agricultural Development Bank posted NPR 4.15 billion in profit, up 43.38% from NPR 2.89 billion.
- NMB Bank recorded NPR 3.28 billion in profit, an increase of NPR 1.03 billion from last year.
- Siddhartha Bank saw a 10.23% profit growth to NPR 3.39 billion.
- Kumari Bank earned NPR 2.11 billion, a sharp rise from NPR 46 million last year.
- Sanima Bank posted a 7.24% increase to NPR 2.57 billion.
- Machhapuchchhre Bank saw profits nearly double (up 92.44%) to NPR 2.01 billion.
- Himalayan Bank earned NPR 1.51 billion, up 22.14% from NPR 1.23 billion.
- Citizens Bank was the only one to post a decline, with profits down 2% to NPR 1.29 billion.
Analysts believe that with further improvement in economic activity and credit quality, Nepal’s banking sector could continue to see robust earnings growth in the coming year.
