Top 20 commercial banks have released their unaudited financial statements for the fourth quarter of the fiscal year 2080/81, collectively earning a net profit of Rs 64.15 Arba during the period.

Among these banks, 10 reported an increase in earnings for Q4 2080/81, while the remaining 10 experienced a decline in net profit. Nabil Bank emerged as the most profitable bank, with a net profit of Rs 7.06 Arba, marking a 10.23% increase from the same period the previous fiscal year. Global IME Bank followed with a profit of Rs 6.01 Arba, and Nepal Investment Mega Bank secured the third position with Rs 5.19 Arba in net profit.

Machhapuchhre Bank recorded the lowest net profit, earning Rs 1.25 Arba by the end of the last fiscal year. Citizens Bank International and NIC Asia Bank each reported profits hovering around Rs 1.3 Arba, while Nepal Bank earned Rs 1.65 Arba.

Prabhu Bank demonstrated the most significant improvement, with a net profit increase of 1499.04% during the review period. Kumari Bank's net profit rose by 345.67%, Prime Commercial Bank's by 267.19%, and Agriculture Development Bank's by 176.23%.

Net profit : FY 2080/81, Nabil Bank Limited (NABIL) led the net profit rankings, earning Rs. 7.06 Arba, reflecting a 10.23% increase compared to the same period last year.

Global IME Bank Limited (GBIME) secured the second position with a net profit of Rs. 6.02 Arba, although this marked a 10.13% decline from the previous year. Nepal Investment Mega Bank (NIMB) followed in third place with a net profit of Rs. 5.2 Arba.

Prabhu Bank Limited (PRVU) stood out with the highest growth, achieving a staggering 1499.04% increase in net profit. In contrast, NIC Asia Bank Limited (NICA) experienced the most significant decline, with a 68.91% drop in net profit for the quarter.

Reserve and surplus: The collective reserve and surplus of all commercial banks stood at Rs. 3.28 Kharba, with the industry average being Rs. 16.44 Arba. Rastriya Banijaya Bank Limited (RBBL) led with a reserve and surplus of Rs. 37.36 Arba, followed by Nabil Bank Limited (NABIL) at Rs. 32.51 Arba, and Nepal Investment Mega Bank Limited (NIMB) at Rs. 27.13 Arba.

Provisions for the period (Impairment/Reversal): Banks allocated Rs. 36.96 Arba for loan loss provisions and delayed loan repayments. Global IME Bank Limited (GBIME) had the highest impairment charge at Rs. 3.74 Arba, followed by Kumari Bank Limited (KBL) at Rs. 3.56 Arba.

Earnings per share: Standard Chartered Bank Nepal Limited (SCB) provided the highest annualized EPS at Rs. 35.09 per share. Everest Bank Limited (EBL) followed with Rs. 31.45 per share, and Nabil Bank Limited (NABIL) came in third at Rs. 26.09 per share. Kumari Bank Limited (KBL) had the lowest EPS at Rs. 8.80 per share. The industry average EPS stood at Rs. 17.80, with nine banks exceeding this average.

Distributable Profit: Nabil Bank Limited (NABIL) reported a distributable profit exceeding Rs. 3.86 Arba, while Everest Bank reported Rs. 3.51 Arba. Conversely, four commercial banks reported negative distributable profits.

Base Rate and Interest Spread: Base rate is defined as the minimum interest rate set by the NRB below which Commercial banks are not permitted to lend to their customers. NIC Asia Bank Limited (NICA) reports the highest base rate of 9.19%, and Standard Chartered Bank Nepal Limited (SCB) has the lowest base rate of 6.60%.

Similarly, the net interest rate spread is the difference between the interest rate a bank pays to depositors and the interest rate it receives from loans to consumers. Here, the commercial banks have net interest rate spread hovering around 3.95%- 4%