Nepal Infrastructure Bank (NIFRA): Q4 Financial Results – Profit Declines Despite Surge in Deposits
Nepal Infrastructure Bank (NIFRA) has released its unaudited financial results for the fourth quarter of the previous fiscal year. The Q4 report reveals some interesting trends in the banking sector in Nepal, showing a decrease in profitability despite a significant increase in deposit collection. Let’s delve into the details of the NIFRA Q4 report.
The bank’s net profit experienced a decrease of 13.86%, settling at NPR 1.14 billion. This is a decrease from the NPR 1.32 billion reported in the same period last year. The primary driver behind this profit decline is the reduction in net interest income.
Net interest income for NIFRA decreased by 25.51%, reaching NPR 1.90 billion. Furthermore, operating income also saw a decrease, falling by 25.03% to NPR 1.92 billion. However, there was a substantial increase in fee and commission income, surging by 79.73% to NPR 20 million. The impairment charge moved from NPR 310 million to a negative NPR 40 million, showcasing a positive shift in this area.
Consequently, the bank’s operating profit declined by 13.69%, reaching NPR 1.64 billion.
Despite the overall profit decrease, the distributable profit for NIFRA showed a significant increase of 76.67%, reaching NPR 1.17 billion. This is a substantial rise from the NPR 660 million recorded in the same period last year.
Looking at other key metrics, NIFRA’s paid-up capital stands at NPR 21.60 billion. The reserve fund holds NPR 4.07 billion. The earnings per share (EPS) decreased by 86 paisa to NPR 5.30. However, the net worth per share increased by 5.06%, reaching NPR 118.88.
A noteworthy highlight of the financial results is the remarkable increase in deposit collection. NIFRA experienced an impressive 826.65% growth in deposits, reaching NPR 769 million. Simultaneously, loan disbursement increased by 18.90%, reaching NPR 24.81 billion. These figures indicate strong growth in banking activities and demonstrate the bank’s performance in lending and attracting deposits.
For more insights into Nepalese stock market and to stay updated on the latest financial news, follow us on Facebook. Get the latest updates on Nepal Stock Exchange (NEPSE), banking sector news, and financial analysis. Stay informed about stock market trends and the performance of Nepalese banks.
