KATHMANDU, Aug 16: Nepal’s commercial banks posted a combined net profit of Rs 69.86 billion in the last Fiscal Year (FY), marking a 32.27 percent increase from the previous fiscal year.
According to unaudited financial statements published by 20 commercial banks, the banks had earned a combined Rs 52.81 billion in FY 2024/25. Their total profit thus increased by Rs 17.05 billion over the course of a year.
The strong growth in profitability came despite a decline in interest income, with improved loan recovery, changes in loan-loss provisions, tighter control of operating expenses and growth in other income helping boost the banks’ bottom lines.
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The rise in profits comes at a time when Nepal’s banking sector continues to grapple with weak demand for credit. Interest rates have fallen to around their lowest levels in a decade, but private-sector investment has yet to pick up significantly. As a result, banks continue to hold substantial amounts of excess loanable funds.
Among individual banks, Nabil Bank recorded the highest net profit. Its profit stood at Rs 7.90 billion in the last fiscal year, up 33.49 percent from the previous year.
Kumari Bank ranked second with a net profit of Rs 7.38 billion, followed by Global IME Bank with Rs 6.22 billion and Everest Bank with Rs 5.06 billion.
Of the 20 commercial banks, 14 reported an increase in net profit, while four recorded a decline. NIC Asia Bank returned to profit after reporting losses in the previous fiscal year, while Prabhu Bank reported a loss.
