Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Everest Bank Limited (EBL) posted a modest increase in net profit in the second quarter of the current fiscal year, supported by stronger interest and non-interest income, while earnings per share declined and impairment charges rose.
As of mid-January (end of the second quarter), the bank’s net profit increased 2.04% year-on-year to Rs 2.1171 billion, compared to Rs 2.0747 billion during the same period last fiscal year. The growth was primarily driven by higher net interest income.
Over the six-month review period, net interest income rose 5.96% to Rs 4.57 billion. Fee and commission income also recorded a strong 20.38% increase, contributing to a 9.73% rise in total operating income.
However, the bank’s impairment charge climbed significantly, rising from Rs 349.5 million last year to Rs 562.7 million this year. Despite this increase in credit risk provisioning, operating profit still grew 2.06%.
On the shareholder return side, earnings per share (EPS) declined by Rs 1.20 to Rs 30.86. The bank’s net worth per share stands at Rs 235.15, while the price-earnings (P/E) ratio is 21.39 times.
Everest Bank reported distributable profit of Rs 3.3428 billion over the six-month period, indicating improved dividend capacity. However, asset quality showed slight pressure, with the non-performing loan (NPL) ratio rising to 0.68% from 0.66% a year earlier.
The bank has a paid-up capital of Rs 13.7213 billion and maintains reserves totaling Rs 18.52 billion. As of mid-January, Everest Bank had mobilized deposits worth Rs 304 billion and extended loans and advances totaling Rs 236 billion, reflecting steady balance sheet expansion.
The latest results indicate stable earnings growth supported by core banking income, though higher impairment costs and a drop in EPS highlight margin and risk-side pressures.
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