Global IME Bank Limited (GBIME) Publishes Unaudited Financial Report for Third Quarter of FY 2081

Global IME Bank Limited (GBIME) has released its unaudited financial statement for the third quarter of the current fiscal year 2081 (Nepali calendar), covering the first nine months up to Chaitra 2081. The report highlights significant growth in key financial metrics compared to the same period in the previous fiscal year, reflecting the bank’s robust financial health.

In the first nine months of FY 2081, the bank reported a net profit of NPR 4.53 billion, a substantial 37.12% increase from NPR 3.30 billion in the same period of FY 2080. This growth in net profit was primarily driven by a significant reduction in impairment charges, despite a decline in net interest income. Impairment charges decreased from NPR 5.26 billion in the previous year to NPR 3.11 billion in the current period.

However, the bank’s net interest income saw a decline of 5.46%, dropping to NPR 12.31 billion from NPR 13.29 billion in the corresponding period of the last fiscal year. On a positive note, net fee and commission income rose by 17.30%, reaching NPR 2.31 billion. While total operating income slightly decreased by 0.61% to NPR 15.53 billion, operating profit surged by 34.41%, amounting to NPR 6.33 billion.

As of the end of Chaitra 2081, the bank’s deposits grew by 6.20% to NPR 517.66 billion, and loans and advances increased by 11.87% to NPR 413.28 billion. The bank’s paid-up capital stands at NPR 38.11 billion, with reserves and surplus amounting to NPR 28 billion, marking a 10.77% increase compared to the previous year.

The bank’s earnings per share (EPS) also improved, rising by NPR 3.66 to NPR 15.86. Distributable profit for the period is NPR 3.54 billion, with a distributable EPS of NPR 12.04. The price-to-earnings (P/E) ratio stands at 13.79, and the net worth per share is NPR 173.47.

In terms of risk management and capital adequacy, the bank maintains a capital fund to risk-weighted assets (RWA) ratio of 12.36%. The non-performing loan (NPL) ratio is 4.98%, slightly up from 4.74% in the previous year, indicating a need for enhanced risk management. The credit-to-deposit ratio is 78.04%, the base rate is 6.30%, and the interest rate spread is 3.79%, showing a marginal increase from 3.73% last year.

Overall, Global IME Bank has demonstrated strong performance in the third quarter of FY 2081. The growth in net profit, operating profit, deposits, and loan disbursements underscores the bank’s solid market position. However, addressing the decline in net interest income and the rise in the NPL ratio will be crucial for sustaining this growth in the future.