Kumari Bank Achieves 3.77% Growth in Net Interest Income with Strong Operating Performance in Q1 -

Kathmandu - Kumari Bank Limited (KBL) has released its unaudited financial results for the first quarter of the fiscal year 2082/83, demonstrating a strong performance despite facing challenges. The bank recorded net interest income of NPR 2.91 billion, reflecting a 3.77% increase compared to NPR 2.80 billion in the same period last year. This growth highlights the bank’s robust management of its core income-generating activities.

In addition, Kumari Bank saw significant improvements in fee and commission income, which rose by 39.63%, driving a 13.12% increase in total operating income during the first quarter. This indicates a positive trend in the bank's non-interest income streams.

While the bank achieved growth in income, it experienced a slight decline in operating profit by 8.11% and net profit by 2.01%. The net profit for the first quarter was NPR 1.05 billion, compared to NPR 1.07 billion in the same period last year.

The decline in profit was primarily due to the increase in non-performing loans (NPLs), which led to higher impairment charges totaling NPR 1.26 billion, impacting both operating profit and net profit.

The earnings per share (EPS) decreased slightly by NPR 0.33, reaching NPR 16.11. However, the bank’s net worth per share remained strong at NPR 145.21, and the price-to-earnings (P/E) ratio stood at 11.26 times as of the end of Ashoj.

Kumari Bank continues to maintain a solid financial position with paid-up capital of NPR 26.22 billion and reserves of NPR 11.86 billion. The bank also reported healthy growth in its deposit base, which reached NPR 360.40 billion, while its loan disbursement totaled NPR 269.41 billion as of the end of the first quarter.