Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Citizens Bank International has returned to profit in the second quarter of the current fiscal year, reversing losses recorded in the first quarter, according to its latest financial disclosures.
The bank reported a net profit of Rs 358.8 million by the end of the second quarter. This marks a turnaround from a Rs 220 million loss recorded at the end of the first quarter. However, profitability remains significantly lower compared to the same period last fiscal year, when the bank had posted a net profit of Rs 921.9 million.
The decline in year-on-year earnings has been attributed to weaker non-interest income. Although interest income increased, a drop in fee, commission, and other operating income weighed on overall profitability.
In the first six months of the fiscal year, the bank’s interest income rose 2.27% to Rs 3.14 billion, up from Rs 3.07 billion during the same period last year. However, fee and commission income declined 3.23%, falling to Rs 623.8 million from Rs 644.7 million a year earlier.
Asset quality remains under pressure, with the bank’s non-performing loan (NPL) ratio standing at 6.86%, a level considered elevated in the banking sector.
The bank’s Capital Adequacy Ratio (CAR) stands at 12.43%, indicating compliance with regulatory capital requirements. Meanwhile, the base rate has declined to 5.62%, reflecting easing funding costs and changing interest rate dynamics in the financial system.
Earnings and balance sheet indicators show earnings per share (EPS) at Rs 4.63, while net worth per share has reached Rs 149.39.
Citizens Bank’s paid-up capital stands at Rs 15.50 billion, supported by reserves of Rs 8.82 billion, providing a capital buffer despite reduced profitability compared to the previous year.
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