Nepal Investment Mega Bank's Profit Drops by 43.05%

Nepal Investment Mega Bank's net profit has decreased by 43.05% compared to the same period last year. The decline in net interest income and a significant increase in impairment charges have put pressure on the bank's profitability.

According to the unaudited financial statements for the second quarter of the current fiscal year 2082/83, the bank earned a net profit of NPR 1.61 billion by the end of Poush. In the same period last year, the bank earned a net profit of NPR 2.83 billion.

During the review period, the bank's net interest income fell by 12.83%, dropping to NPR 6.42 billion. However, income from fees and commissions increased by 8.66%.

The bank's total operating income decreased by 4.74%, amounting to NPR 8.58 billion. Impairment charges rose from NPR 1.77 billion to NPR 3.09 billion, causing the operating profit to fall by 40.59%, reaching NPR 2.33 billion.

The bank's distributable profit is in a negative position, with a deficit of NPR 3.62 billion.

With the drop in profit, the bank's earnings per share have also decreased. By the end of Poush, the earnings per share were limited to NPR 0.45. The net worth per share stands at NPR 194.77, while the price-to-earnings ratio is 20.20 times.

The bank has a paid-up capital of NPR 34.12 billion and a reserve fund of NPR 32.34 billion. By the end of Poush, the bank had collected deposits totaling NPR 519 billion and invested NPR 328 billion in loans.

This decline marks a challenging period for the bank, indicating the need for adjustments and improvements in its financial strategy moving forward.