Net earnings of a total of 32 commercial banks stood at Rs 7.95 billion in the six-month period to January 13, as against Rs 5.49 billion in the same period last year, unaudited first half figures of commercial banks published till Friday show. [break]
The figures show net profits of a total of 29 commercial banks had gone up during the period, while Agriculture Development Bank Limited and Laxmi Bank recorded contraction in net earnings. KIST Bank, on the other hand, was the only commercial bank to post a net loss of Rs 69.57 million during the period, as it had to put aside Rs 371.89 million after loan repayments were delayed.
As in the past, Nabil Bank has led the league table on net profit among category ´A´ financial institutions in the first half. The country´s largest private sector-led bank in terms of assets posted a net profit of Rs 1.11 billion, up 69 percent from the same period last year.
Second on the league table was Nepal Investment Bank. It reported 86 percent hike in net earnings to Rs 891.26 million in the first six months of the current fiscal year.
Next in the line was Everest Bank that posted a net profit of Rs 642.46 million in the first half, as against Rs 487.03 million recorded in the same period last year.
Close on the heels of Everest was state-owned Rastriya Banijya Bank, which reported 10 percent hike in net earnings to Rs 609.93 million, while Standard Chartered Bank Nepal generated a net profit of Rs 558.89 million in the first six months of the current fiscal year as against Rs 555.17 million in the same period last year.
Majority of the category ´A´ financial institutions were able to post higher net profits due to hike in interest income and fall in interest expenses.
Bank´s interest income - earnings that financial institutions make by providing loans - rose by 5.57 percent in the first half to Rs 42.21 billion. In contrast, banks´ interest expense - payments made to depositors - fell by 10.55 percent to Rs 22.92 billion. Due to hike in interest income and fall in interest expenses, net interest income of commercial banks leapt 34.30 percent in the six-month period to Rs 19.29 billion.
At the same time, extraordinary income of banks also jumped by 23.33 percent to Rs 281.37 million in the first half, which also gave a boost to net profits of banks. Banks usually report such income after recovering loans that have been written off. In the six-month period, 12 banks reported such windfall in their unaudited balance sheets, with Agriculture Development Bank reporting the highest extraordinary income of Rs 227.03 million.
Top 5 banks in terms of net profit
- Nabil Bank - Rs 1.11 billion
- Nepal Investment Bank - Rs 891.26 million
- Everest Bank - Rs 642.46 million
- Rastriya Banijya Bank - Rs 609.93 million
- Standard Chartered Bank - Rs 558.89 million
Related story
23 commercial banks earns net profit above Rs 1 billion
_20191222200001.jpg)
