Global IME Bank reports 37.27pc profit surge in Q3 of FY 2081
KATHMANDU: Global IME Bank has achieved a robust net profit of NPR 4.53 billion in the third quarter of the current fiscal year (FY 2081), marking a significant 37.27% increase compared to NPR 3.30 billion in the same period of the previous fiscal year, according to the bank’s financial statement.
Despite the profit growth, the bank faced challenges due to declining interest rates on deposits and loans, which led to a reduction in net interest income. The bank’s net interest income dropped to NPR 12.37 billion in Q3 of FY 2081, down from NPR 13 billion in the corresponding period of FY 2080.
On a positive note, Global IME Bank significantly reduced its loan loss provisions. The expense for loan losses decreased to NPR 3.11 billion in Q3 of FY 2081, compared to NPR 5.26 billion in the same period last year. However, the bank’s non-performing loans (NPLs) slightly increased, rising from 4.74% in FY 2080 to 4.98% in FY 2081.
The bank’s distributable profit saw a remarkable turnaround, reaching NPR 3.54 billion in Q3 of FY 2081. This is a stark improvement from a distributable loss of NPR 423.1 million in the same period of the previous fiscal year. The enhanced distributable profit has bolstered the bank’s primary capital fund, which stood at 9.93% as of the end of Chaitra 2081, up from the previous year.
Additionally, Global IME Bank’s capacity to distribute dividends has strengthened. Last year, the bank issued bonus shares worth NPR 480 million, and its improved financial position this year signals a greater ability to reward shareholders.
The bank’s performance reflects its resilience amid economic challenges, supported by prudent cost management and strategic financial planning.
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