Commercial Banks Report 13.47% Decline in Net Profit for Third Quarter ➤

Commercial Banks Report 13.47% Decline in Net Profit for Third Quarter

Mixed Results as 13 Banks Witness Decrease, Agriculture Development Bank Leads Growth

Commercial banks have released their third-quarter reports for the current fiscal year, revealing a collective decline of 13.47 percent in overall net profit compared to the corresponding period of the previous fiscal year.

The cumulative net profit of 20 banks, which stood at Rs 47.01 billion in the last fiscal year, dwindled to Rs 40.68 billion in this quarter.

Among the 20 banks, 13 witnessed a decrease in net profit, while seven banks managed to achieve growth during the period.

Notably, Agriculture Development Bank emerged as a standout performer, recording the highest growth in net profit. The bank bolstered its profit by an impressive 97.22 percent, soaring to Rs 2.05 billion from Rs 1.04 billion in the previous fiscal year.

Other notable achievers include Laxmi Sunrise Bank, Prime Commercial Bank, Siddhartha Bank, Himalayan Bank, Nepal Investment Mega Bank, and Everest Bank, all of whom reported increased net profit.

However, Nepal Bank faced significant challenges, registering the highest decline in net profit. The bank’s net profit plummeted by 92.68 percent to a mere Rs 130.5 million from Rs 1.78 billion in the previous fiscal year.

In contrast, Nabil Bank emerged as the top earner in the third quarter, securing a net profit of Rs 4.66 billion. Although this represents a decrease of 8.76 percent compared to the review period of the last fiscal year, Nabil Bank maintained its position as a leading financial institution.

Meanwhile, Nepal Bank reported the lowest profit among the banks during the period, indicating ongoing challenges faced by the institution.

As commercial banks navigate through dynamic market conditions, strategic initiatives and prudent financial management will be crucial in mitigating risks and fostering sustainable growth in the banking sector.