SCB
Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip
Standard Chartered Bank Nepal (SCB) reported Q4 FY 2024/25 revenue of Rs. 8.33 billion (-6.60% YoY) with net income of Rs. 3.03 billion (-8.4% YoY). Despite revenue pressure, profit margin strengthened to 36.33%, while ROE stood at 14.41%. Asset quality improved with NPLs down to 1.47% and provisioning coverage rising to 160%. EPS stood at Rs. 30.17, with a PE ratio of 21.75. The bank continues to maintain strong capitalization and liquidity, positioning itself as one of the most stable commercial banks in Nepal.
Sandeep Chaudhary
2 min read
Standard Chartered Bank Nepal (SCB) has published its Q4 audited financial results for FY 2024/25, reflecting a slight decline in revenues but maintaining strong profitability, efficiency, and balance sheet strength.
The bank posted a total revenue of Rs. 8.33 billion, down 6.60% YoY compared to Rs. 11.08 billion in Q4 FY 2023/24. Revenue contraction persisted throughout the year with quarterly drops of 23.05% in Q3 and 31.08% in Q2.
Despite this, gross profit stood at Rs. 4.48 billion, with a healthy gross margin of 53.84%, slightly higher than 46.52% in the same period last year.
Net income came in at Rs. 3.03 billion, slightly below last year’s Rs. 3.30 billion, but still reflecting robust profitability. The net profit margin improved to 36.33%, up from 29.86% last year, supported by disciplined cost management and stable interest income.
On profitability ratios, Return on Assets (ROA) remained at a solid 2.04%, while Return on Equity (ROE) stood at 14.41%, consistent with last year’s 16.42%, highlighting SCB’s superior efficiency compared to many peers in the sector.
Earnings per share (EPS, annualized) reached Rs. 30.17, while the price-to-earnings (PE) ratio stood at 21.75, showing balanced valuation in line with the market. Book value per share improved to Rs. 216.96, with the market value closing at Rs. 656.10. Last year, the bank distributed a dividend of Rs. 25.50 per share, while no dividend has been declared yet for this year.
Financial Sector Indicators
Capital Adequacy (Capital Fund to RWA): 17.82%, above regulatory minimum and indicating strong capitalization.
NPL ratio: Improved to 1.47%, down from 2.14% last year, reflecting stronger asset quality.
Provisioning coverage: Strengthened to 160.08%, compared to 126.03% a year earlier, ensuring adequate risk buffers.
Cost of funds: Declined to 3.22% from 3.84%, reducing funding pressure.
Base rate: Fell to 4.99%, from 6.60% last year, making lending more competitive.
Net interest spread: Maintained at 3.53%, stable with previous quarters.
Liquidity: Net liquid asset ratio rose to 46.30%, up from 42.48% last year, ensuring ample liquidity cushion.
Written by
Sandeep Chaudhary