Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Everest Bank Limited has reported a 3.7 percent decline in net profit for the third quarter of the current fiscal year, even as the bank expanded lending and deposits and improved its asset quality indicators.
According to its latest financial disclosure, the bank’s net profit stood at NPR 3.32 billion, down from NPR 3.45 billion recorded during the same period last fiscal year. The decline comes despite growth in core income streams, highlighting rising provisioning pressure and operating costs.
The bank’s net interest income increased by NPR 90 million to reach NPR 6.83 billion over the nine-month period. Similarly, net fee and commission income rose by NPR 360 million, reflecting improved business activity and service-based revenue growth.
However, a sharp increase in loan loss provisions weighed heavily on profitability. The bank set aside NPR 777.4 million for potential losses, significantly higher than NPR 272.9 million allocated in the corresponding period last year. This increase in provisioning reflects a cautious stance amid evolving credit risks in Nepal’s banking sector.
Everest Bank’s net operating income rose by around NPR 250 million, but higher staff expenses and overall operating costs offset these gains, leading to a decline in both operating and net profit.
On a positive note, the bank reported an improvement in asset quality. Its non-performing loan (NPL) ratio declined from 0.64 percent last year to 0.61 percent, indicating better credit risk management and recovery efforts.
The bank’s capital adequacy ratio stood at 12.87 percent, while its core capital ratio was reported at 9.58 percent, both remaining above regulatory requirements set by Nepal Rastra Bank.
Everest Bank’s distributable profit reached NPR 1.74 billion during the review period. In terms of business expansion, the bank’s total loan portfolio increased from NPR 213.44 billion at the end of last fiscal year to NPR 250.87 billion by the end of Chaitra, reflecting strong credit growth.
The bank’s paid-up capital currently stands at NPR 13.72 billion, with reserves totaling NPR 15.50 billion. Key performance indicators show earnings per share (EPS) at NPR 32.35 and net worth per share at NPR 244.27.
The latest results underline a mixed performance, where balance sheet expansion and improved asset quality are offset by rising provisioning requirements and cost pressures in Nepal’s evolving banking landscape.
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