KATHMANDU: Himalayan Bank has reported a sharp rise in net profit in the fiscal year 2025/26, with unaudited fourth-quarter financial results showing a 1,041.16 percent increase.
The bank posted a net profit of Rs 1.48 billion by the end of Ashadh, compared with just Rs 129.7 million in the previous fiscal year.
Despite the significant improvement in profit, the bank’s net interest income declined 15.74 percent to Rs 8.81 billion from Rs 10.46 billion a year earlier.
Similarly, total operating income fell 11.03 percent to Rs 11.14 billion, down from Rs 12.52 billion. Operating profit also declined 23.60 percent to Rs 2.63 billion from Rs 3.44 billion.
The bank’s distributable profit remained negative at Rs 9.84 billion, although this was an improvement from a negative Rs 8.85 billion in the previous year.
Higher net profit also pushed the bank’s earnings per share (EPS) to Rs 6.56 from just Rs 0.60 a year earlier.
However, asset quality deteriorated significantly. The bank’s non-performing loan (NPL) ratio increased to 11.59 percent from 7.97 percent a year earlier, indicating continued pressure from bad loans.
As of the end of the fiscal year, Himalayan Bank had paid-up capital of Rs 22.58 billion. Its deposits increased 13.72 percent to Rs 351.57 billion, while its loan portfolio declined 1.24 percent to Rs 227.77 billion.
The results indicate that while the bank has substantially improved its reported profitability, declining core banking income and a sharp rise in non-performing loans remain key areas of concern.
