सिद्धार्थ बैंकको चौथो त्रैमासिक अपरिष्कृत वित्तीय विवरणSiddhartha Bank Unaudited 4th Quarter Financial Results

Siddhartha Bank Limited

Unaudited Financial Results

(4th Quarter of Fiscal Year 2079/80)

Condensed Consolidated Statement of Financial Position

Group This Quarter Ending Immediate Previous Year Ending (Audited) Bank This Quarter Ending Immediate Previous Year Ending (Audited)

Assets

Cash and cash equivalent	30,227,750,078	30,796,901,868	30,225,205,991	-
Due from Nepal Rastra Bank	15,785,408,537	14,875,796,713	15,785,408,537	-
Placements with Bank and Financial Institutions	16,438,100,794	7,405,231,218	16,438,100,794	-
Derivative financial instruments	27,990,195	15,995,407	27,990,195	-
Other trading assets	-	141,201,197	-	250,375,488
Loan and advances to B/FIs	8,785,342,157	8,098,097,875	8,785,342,157	-
Loans and advances to customers	233,885,005,122	214,471,321,149	233,872,635,253	-
Investment securities	75,442,784,924	54,889,028,906	75,187,272,678	-
Current tax assets	195,883,610	232,694,663	194,959,775	-
Investment in subsidiaries	-	-	51,000,000	-
Investment in associates	-	-	-	-
Investment property	893,652,365	725,635,232	893,652,365	-
Property and equipment	2,894,318,598	3,219,416,537	2,875,071,393	-
Goodwill and Intangible assets	119,403,173	122,793,048	115,980,570	-
Deferred tax assets	-	-	-	-
Other assets	5,325,804,160	4,215,842,403	5,280,197,589	-
Total Assets	390,162,644,909	339,319,130,508	389,732,817,297	-

Liabilities

Due to Bank and Financial Institutions	4,477,738,128	3,092,528,164	4,477,738,128	-
Due to Nepal Rastra Bank	313,538,230	391,922,787	313,538,230	-
Derivative financial instruments	66,167,753	19,709,982	66,167,753	-
Deposits from customers	326,609,304,537	280,004,522,783	327,016,400,520	-
Borrowing	2,445,931,194	5,839,097,142	2,445,931,194	-
Current Tax Liabilities	-	-	-	-
Provisions	-	-	-	-
Deferred tax liabilities	345,700,535	481,065,018	342,829,680	-
Other liabilities	6,511,124,050	6,404,043,943	6,150,012,918	-
Debt securities issued	12,000,000,000	11,662,559,000	12,000,000,000	-
Subordinated Liabilities	-	-	-	-
Total liabilities	352,769,504,428	307,895,448,820	352,812,618,424	-

Equity

Share capital	18,294,479,199	14,089,980,190	18,294,479,199	-
Ordinary shares	14,794,479,199	14,089,980,190	14,794,479,199	-
Perpetual Non-Cumulative Preference Share	3,500,000,000	-	3,500,000,000	-
Share premium	-	-	-	-
Retained earnings	1,822,094,718	1,951,104,307	1,705,671,173	-
Reserves	17,019,835,177	15,133,062,311	16,920,048,501	-
Total equity attributable to equity holders	37,136,409,093	31,174,146,808	36,920,198,873	-
Non-controlling interest	256,731,388	249,534,881	-	-
Total equity	37,393,140,482	31,423,681,689	36,920,198,873	-
Total liabilities and equity	390,162,644,909	339,319,130,508	389,732,817,297	-

Condensed Consolidated Statement of Profit or Loss

Particulars Group Current Year This Quarter Group Current Year Up To This Quarter (YTD) Group Previous Year Corresponding This Quarter Group Previous Year Corresponding Up To This Quarter (YTD) Bank Current Year This Quarter Bank Current Year Up To This Quarter (YTD)

Interest income	5,593,314,909	21,059,302,347	5,546,893,772	22,324,800,070	5,594,828,129	21,054,091,973
Interest expense	3,068,369,113	11,998,229,437	3,439,483,676	13,868,450,418	3,072,513,822	12,002,903,217
Net interest income	2,524,945,796	9,061,072,910	2,107,410,095	8,456,349,652	2,522,314,308	9,051,188,756
Fees and commission income	731,132,721	2,649,815,503	591,874,285	2,299,852,097	671,612,725	2,443,962,548
Fees and commission expense	168,275,167	607,164,898	124,335,177	543,526,232	163,699,928	579,271,858
Net fee and commission income	562,857,554	2,042,650,605	467,539,108	1,756,325,866	507,912,797	1,864,690,690
Net interest, fee and commission income	3,087,803,350	11,103,723,515	2,574,949,202	10,212,675,518	3,030,227,105	10,915,879,445
Net trading income	171,310,100	511,927,251	243,661,580	438,739,311	199,751,704	518,283,074
Other operating income	41,440,548	619,689,653	222,564,178	663,354,620	42,063,635	617,500,159
Total operating income	3,300,553,998	12,235,340,419	3,041,174,960	11,314,769,449	3,272,042,444	12,051,662,678
Impairment charge/(reversal) for loan and other losses	(269,051,487)	1,766,436,180	(841,132,984)	1,375,321,982	(269,051,487)	1,766,436,180
Net operating income	3,569,605,485	10,468,904,239	3,882,307,943	9,939,447,467	3,541,093,931	10,285,226,498

Operating expense

Personnel expense	1,027,918,179	3,595,482,702	929,890,822	3,305,645,125	1,014,825,234	3,532,336,566
Other operating expense	28,602,786	1,145,180,341	29,302,696	1,039,312,047	19,501,254	1,112,864,799
Depreciation & Amortisation	294,760,795	490,048,823	305,924,351	511,285,578	291,232,711	477,304,848
Operating Profit	2,218,323,725	5,238,192,373	2,617,190,077	5,083,204,717	2,215,534,733	5,162,720,285
Non operating income	2,612,954	10,365,456	6,221,762	16,233,057	2,606,359	10,102,511
Non operating expense	28,083,745	73,333,199	926,504	7,912,459	28,083,745	73,333,199
Profit before income tax	2,192,852,935	5,175,224,630	2,622,485,336	5,091,525,315	2,190,057,348	5,099,489,596

Income tax expense

Current Tax	699,381,373	1,625,020,228	915,561,781	1,668,878,088	698,542,697	1,593,119,718
Deferred Tax	(13,039,919)	(13,039,919)	(11,730,277)	(11,730,277)	(13,039,919)	(13,039,919)
Profit for the period	1,506,511,481	3,563,244,321	1,718,653,833	3,434,377,505	1,504,554,570	3,519,409,797

Condensed Consolidated Statement of Comprehensive Income

Profit or loss for the period	1,506,511,481	3,563,244,321	1,718,653,833	3,434,377,505	1,504,554,570	3,519,409,797
Other Comprehensive Income	(147,772,777)	(285,209,627)	35,218,800	97,299,988	(147,772,777)	(285,461,852)
Total Comprehensive Income	1,358,738,704	3,278,034,694	1,753,872,634	3,531,677,493	1,356,781,793	3,233,947,946
Basic earnings per share	38.79	23.11	45.33	22.90	38.76	23.06
Diluted earnings per share	38.79	23.11	45.33	22.90	38.76	23.06

Profit attributable to:

Equity holders of the Bank	1,357,779,817	3,241,438,187	1,743,840,225	3,484,554,227	1,356,781,793	3,233,947,946
Non-Controlling Interest	958,887	36,596,507	10,032,409	47,123,266	-	-
Total	1,358,738,704	3,278,034,694	1,753,872,634	3,531,677,493	1,356,781,793	3,233,947,946

Ratios as per NRB Directives

Capital Fund to RWA 13.20% 13.20% 11.78% 11.78% 13.19% 13.19%

Tier-I Capital to RWA 10.89% 10.89% 9.88% 9.88% 10.88% 10.88%

CET I Capital to RWA 9.71% 9.71% 9.88% 9.88% 9.70% 9.70%

Non-Performing Loan (NPL) to Total Loan 3.53% 3.53% 2.62% 2.62% 3.53% 3.53%

Net Non-Performing Loan to Total Loan 1.06% 1.06% 0.66% 0.66% 1.06% 1.06%

Total loan loss provision to Total NPL 104.69% 104.69% 125.32% 125.32% 104.69% 104.69%

Cost of Funds 3.42% 3.42% 4.39% 4.39% 3.42% 3.42%

Credit to Deposit Ratio 73.63% 73.63% 76.92% 76.92% 73.63% 73.63%

Base Rate (monthly) 5.02% 5.02% 6.42% 6.42% 5.02% 5.02%

Interest Rate Spread 3.69% 3.69% 3.98% 3.98% 3.69% 3.69%

Return on Equity (Annualized) 17.87% 10.75% 22.26% 11.56% 17.84% 10.62%

Return on Assets (Annualized) 1.58% 0.95% 2.07% 1.08% 1.57% 0.94%

Notes:

1. The above figures are subject to change as per the direction of the regulators and/or statutory auditor.

2. The figures for previous year quarter have been restated and regrouped wherever necessary.

3. Loans and advances include accrued interest receivable & staff loans and are presented net of impairment charges.

4. In accordance with NFRS 9- Expected Credit Loss Related Guidelines, 2024 issued by Nepal Rastra Bank, impairment charge on loans and advances has been measured at higher amount between provisions in Unified Directives and ECL calculation methodology.

5. Recognition of interest income is based upon Guidance Note on Interest Income Recognition, 2025 issued by Nepal Rastra Bank.

6. Perpetual non cumulative preference share has been excluded while computing earnings per share, net worth per share, total assets value per share and return on equity.

7. Provision for Gratuity and Leave encashment have been provided for as per actuarial valuation.

8. Lease contract have been accounted for as per NFRS 16.

9. Average base rate of preceeding three months of the Bank as of Ashad 2083 is 5.05%.

10. Group financial statements include Siddhartha Bank Limited (Parent Company) and Siddhartha Capital Limited (Subsidiary Company) and all intra group transactions are conducted on an arm's length basis.

11. Detailed interim report has been published in Bank's website (www.siddharthabank.com).

Statement of Distributable Profit

Net profit or (loss) as per statement of profit or loss 3,519,409,797

Appropriations:

a. General reserve (703,924,830)

b. Foreign exchange fluctuation fund (33,788,220)

c. Capital redemption reserve (1,100,000,000)

d. Corporate social responsibility fund 2,781,883

e. Employees' training fund -

f. Other

i) Investment adjustment reserve -

ii) Transfer of realised gain/(loss) up to previous year on equities/mutual funds measured at fair value through OCI sold/matured during the year from fair value reserve 214,353

Profit or (loss) before regulatory adjustment 1,684,692,984

Regulatory adjustments:

a. Interest receivable (-)/previous accrued interest received (+) (91,419,495)

b. Short loss provision in accounts (-)/reversal (+) -

c. Short provision for possible losses on investment (-)/reversal (+) -

d. Short loan loss provision on Non-Banking Assets (-)/reversal (+) (83,622,127)

e. Deferred tax assets recognised (-)/ reversal (+) (13,039,919)

f. Goodwill recognised (-)/ impairment of Goodwill (+) -

g. Bargain purchase gain recognised (-)/reversal (+) -

h. Actuarial loss recognised (-)/reversal (+) (22,994,987)

i. Other ( Interest Capitalized Term Loan ) (14,547,922)

Net Profit for the Qtr end Ashad 2083 available for distribution 1,459,068,533

Dividend of perpetual non cumulative preference shares for the Qtr end Ashad	2083	(107,589,041)
Opening Retained Earning as on Shrawan	1,	2082	1,837,866,593

Adjustment (+/-) : -

Distribution:

Bonus shares issued (704,499,009)

Cash dividend paid (779,175,904)

Total Distributable profit or (loss) as on Qtr end date 1,705,671,173

Annualised Distributable Profit/Loss per share (Equity shares) 11.53%

Transfer from Capital Redemption Reserve to Capital Adjustment Reserve* 2,162,559,000

Total available distributable Profit including Capital Adjustment Reserve* 3,868,230,173

Total available Annualised distributable Profit/Loss Per share (Equity shares)* 26.15%

c) Case filed against any Promoter or Director of organized institution regarding commission of financial crime:

None to our knowledge.

4. Analysis of share transaction and progress of organized institution

a) Management's view of share transactions of organized institution of securities market:

Since the price of the share is determined by open market operation, the management holds a neutral view on share transactions and its movement.

b) Maximum, minimum and last share price of the organized institution including total transaction and transacted days during the quarter.

Maximum Price NPR 414.6

Minimum Price NPR 368

Closing Price NPR 395

Total Traded Shares 5,817,404

Total Transaction No. 10,532

Total Traded Days 64 Days

5. Problems and Challenges

Internal

a) Pressure on loan recovery and maintaining asset quality.

b) Slower economic momentum and political uncertainty affecting asset growth.

c) Limited scope for fees income growth amid competitive pricing and subdued transaction volumes.

d) Difficulty in attracting and retaining skilled human resources.

e) Rising operating costs increasing overall cost of doing business.

External

a) Competition among BFIs, pressuring margins and pricing.

b) Volatile macroeconomic conditions and cautious private sector credit demand.

c) Limited investment avenues and subdued yields affecting treasury income.

d) Heightened cybersecurity and operational risks.

e) Global economic uncertainty and geopolitical developments.

Strategies to overcome challenges

a) Active liquidity management to mitigate margin pressures and ensure funding stability.

b) Accelerating digital transformation through automation, AI and advanced analytics.

c) Enhancing operational efficiency through lean processes and cost optimization.

d) Strengthening cybersecurity and IT infrastructure.

e) Intensifying credit recovery and portfolio monitoring to sustain asset quality.

f) Driving product innovation and personalized digital solutions to enhance customer experience.

g) Diversifying revenue streams beyond traditional interest income.

6. Corporate Governance

• Corporate governance remains a defining pillar of the Bank's integrity and resilience. The Bank's governance framework is designed to promote transparency, accountability and sound decision-making across all levels of the organization.

• Board of Directors provides strategic leadership and policy guidance, ensuring long-term objectives align with the Bank's vision, regulatory expectations and stakeholder interests. The Board continuously reviews governance standards with evolving industry practices and regulations.

• Board level committees, including Risk Management Committee, Audit Committee and AML/ CFT Committee, ensure prudent risk oversight, robust internal controls and adherence to ethical and compliance standards.

• Management level committees, including Executive Committee, Management Credit Committee, Asset Liability Management Committee (ALCO), Operational Risk Management Committee and Financial Direction Committee coordinate to execute strategies, ensure sound credit decisions and manage liquidity and operational efficiency.

• The Bank emphasizes risk-based governance, ensuring that all significant business and operational risks are identified, assessed and mitigated through proactive management and a comprehensive internal control framework.

• The Bank continues to embed a compliance and performance-driven culture, supported by strong internal audit functions, transparent disclosures and continuous staff training on governance and ethical conduct.

7. Declaration by CEO

I, CEO of the Bank, take responsibility for the truthfulness of the information and details disclosed in this report. I also hereby declare that to the best of my knowledge and belief, the information disclosed in this report are true, fair and complete and have not concealed any matters that can adversely affect the investment decision of the investors.