Citizens Bank Reports 45% Decline in Profit, Rise in Impairment Charges and Non-Performing Loan Ratio

Citizens Bank International Limited's net profit has decreased by 45% in the second quarter of the current fiscal year, reaching NPR 35 crore.

The bank's impairment charge has increased from NPR 138 crore to NPR 183 crore, while the non-performing loan (NPL) ratio has risen from 4.85% to 6.86%, putting significant pressure on the bank's profits.

As of the second quarter of the current fiscal year, the bank's net profit has fallen by 45.8% to NPR 35.88 crore, compared to NPR 66.18 crore in the same period last year.

While interest income has shown moderate growth, a sharp decline in fee and commission income and a significant increase in impairment charges have led to a reduction in the bank's overall profit.

By the end of December, the bank's interest income increased by 2.27%, reaching NPR 314.45 crore, while total operating income rose by 4.68% to NPR 411.87 crore. However, fee and commission income saw a dramatic decrease of 57.68%, falling to NPR 27.28 crore.

During this period, the bank's distributable profit turned negative, with a deficit of NPR 110 crore, weakening its capacity to distribute dividends. Similarly, operating profit decreased by 44.68%, dropping to NPR 50.41 crore.

With the decline in profits, the bank's earnings per share (EPS) dropped from NPR 8.96 to NPR 4.63. The price-to-earnings ratio (P/E ratio) is currently at 41.68 times, and the net worth per share stands at NPR 149.79.

As of the end of December, the bank has collected deposits worth NPR 2.10 trillion and disbursed loans totaling NPR 1.68 trillion. The loan-to-deposit ratio (CD ratio) stands at 82.66%, and the base rate is at 5.62%.

The bank's paid-up capital is NPR 1.55 billion, and it holds reserves worth NPR 882 crore.