Global IME Bank Experiences Slight Profit Decline, Faces Financial Challenges
Author
NEPSE trading
Global IME Bank Limited (GBIME) has released its unaudited financial report for the fourth quarter of fiscal year 2081. According to the report, the bank has seen a slight decline in net profit compared to the previous fiscal year.
Key Financial Highlights:
Net Profit: By the end of Asar 2081, the bank earned a net profit of NPR 6.01 billion, which is a 10.13% decrease compared to the same period last year when the bank had a net profit of NPR 6.69 billion.
Net Interest Income: The bank's net interest income decreased by 2.74%, dropping to NPR 16.5 billion.
Fee and Commission Income: The bank's net fee and commission income increased by 29.90%, bringing some improvement to the bank's operating income.
Operating Income and Profit: Despite a 2.96% increase in total operating income, the bank's operating profit decreased by 8.25%, reaching NPR 7.5 billion.
Impairment Charge: During the review period, the bank's non-performing loans increased from 3.15% to 4.37%, leading to an impairment charge of NPR 3.74 billion.
Earnings Per Share (EPS): The bank's EPS decreased by NPR 2.06, falling to NPR 16.65.
Distributable Profit: By the end of Asar, the bank's distributable profit stood at NPR 1.1 billion.
Financial Position:
Global IME Bank has a paid-up capital of NPR 36.12 billion and has accumulated a reserve fund of NPR 24.85 billion. During the review period, the bank's deposits grew by 14.34% to NPR 3.59 trillion, while loans increased by 4.23% to NPR 3.27 trillion.
Conclusion:
The slight decline in Global IME Bank's profit and the increase in impairment charges have posed challenges for the bank. However, the bank has shown improvement in fee and commission income, as well as in deposit and loan growth. Moving forward, the bank will need to implement strategies to address these challenges and maintain its financial performance.
