banking News – Kumari Bank has reported a remarkable surge in profitability for the fiscal year 2081/82, with net profits exceeding NPR 2.11 billion a staggering 400-fold increase compared to the previous year.

According to the unaudited financial report for the fourth quarter released by the bank, it recorded a net profit of NPR 2.11 billion, up sharply from just NPR 4.6 million in the same period of the previous fiscal year. The surge in profit is attributed to a significant reduction in loan loss provisioning, which dropped from NPR 60 billion in FY 2080/81 to just NPR 2 billion in FY 2081/82.

Net interest income also rose by nearly 8 percent, reaching NPR 11.55 billion. The bank’s earnings per share (EPS) saw substantial growth as well, increasing to NPR 8.06.

Despite the impressive profit, the bank reported a negative distributable profit of NPR 2 billion as of the end of Ashad. Operating profit jumped by 529.87 percent, rising from NPR 973.9 million in the previous year to NPR 6.13 billion this year.

The bank’s paid-up capital stands at NPR 26.22 billion, with NPR 11 billion in reserves and NPR 13.85 billion in retained earnings. While the distributable profit (capacity to distribute dividends) was negative NPR 5.36 billion in the previous fiscal year, it has narrowed to negative NPR 2.79 billion this year.

However, the bank’s non-performing loan (NPL) ratio increased from 5.96% to 6.62%. Kumari Bank raised NPR 1.38 billion in borrowings, issued loans worth NPR 260 billion, and mobilized NPR 364 billion in deposits. The bank’s net worth per share now stands at NPR 142.19.