Global IME Bank's First Quarter Financial Progress: Significant Profit Growth
Author
Dipesh Ghimire
Global IME Bank has released its first-quarter financial report for the year 2081, showcasing the bank’s financial progress and current standing. Despite facing challenges in some areas, the bank has maintained excellence in overall financial performance by improving profitability and returns.
Key Highlights:
Net profit increased by 23.36%
Net interest income decreased by 14.22%
Fee and commission income grew by 21.14%
Significant reduction in impairment charges
Deposits increased by 5.23%
Loans grew by 7.55%
Earnings per share (EPS) increased by NPR 3.03
Net worth per share reached NPR 174.20
Base rate dropped by 2.78%
1. 23.36% Increase in Net Profit
The bank earned a net profit of NPR 1.51 billion in the first quarter of the current fiscal year, up by 23.36% compared to NPR 1.22 billion in the same period last year. The reduction in impairment charges and growth in fee and commission income were the key drivers of this profit growth.
2. 14.22% Decline in Net Interest Income
The bank's core source of income, net interest income, dropped by 14.22%. It fell from NPR 4.80 billion in the first quarter of 2080 to NPR 4.11 billion this year. Despite the negative impact on overall operating income, other revenue sources helped balance the effect.
3. 21.14% Growth in Fee and Commission Income
While interest income decreased, the bank’s fee and commission income grew by 21.14%, rising from NPR 730.9 million to NPR 884.4 million. This growth significantly bolstered the bank's operating income.
4. Notable Reduction in Impairment Charges
Impairment charges decreased from NPR 1.78 billion to NPR 1.07 billion. This reduction contributed to a 19.40% increase in operating profit, driving the overall profitability of the bank.
5. 5.23% Increase in Deposits
The bank collected deposits worth NPR 512.94 billion in the first quarter, a 5.23% increase from NPR 487.46 billion in the same period last year. This reflects a significant improvement in the bank’s total assets.
6. 7.55% Growth in Loans
The bank also saw substantial growth in loans and advances, with a 7.55% increase. The bank disbursed NPR 397.35 billion in loans, compared to NPR 369.45 billion in the previous year’s first quarter.
7. NPR 3.03 Increase in Earnings Per Share (EPS)
The bank’s earnings per share (EPS) rose to NPR 16.74, compared to NPR 13.71 last year. This increase has generated optimism among the bank’s investors.
8. Net Worth Per Share Reached NPR 174.20
The bank’s net worth per share reached NPR 174.20, up from NPR 168.30 last year, indicating the strengthened financial position of the bank.
9. 2.78% Decline in Base Rate
The bank’s base rate dropped to 7.29% from 10.07%, representing a 2.78% decrease. This reduction is expected to improve the lending rates for customers and further strengthen loan disbursement in the near future.
Balancing Challenges and Improvements
Despite facing certain challenges, such as a decline in interest income, Global IME Bank has managed to enhance its overall financial performance. The reduction in impairment charges and growth in fee and commission income were key factors in the bank’s profit growth. The increase in deposits, loan advances, and EPS, along with the strengthened net worth per share, reinforce the bank’s long-term financial stability.
For investors, the bank’s returns and financial performance are encouraging, ensuring continued financial progress in the near future.
