Miteri Development Bank Reports Strong Growth in Q3 2081

Kathmandu, April 16, 2025 – Miteri Development Bank has released its financial performance report for the third quarter of the Nepali fiscal year 2081, ending on Chaitra 31, 2081. The bank showcased significant growth in key financial metrics, reflecting robust operational efficiency and strategic expansion compared to the same period last year (Chaitra 2080).

Balance Sheet Highlights

The bank's share capital increased by 9.51%, rising from Rs. 1,111,426,000 in Chaitra 2080 to Rs. 1,217,100,000 in Chaitra 2081. Retained earnings saw a substantial jump of 94.51%, growing from Rs. 15,573,900 to Rs. 108,300,000, signaling strong profit retention for future investments. Reserves also grew by 5.95%, reaching Rs. 354,250,000 from Rs. 325,812,000.

However, the bank's reserve and surplus decreased by 3.95%, from Rs. 481,551,000 to Rs. 462,550,000, and deposits from customers saw a slight decline of 3.90%, dropping to Rs. 6,176,498,000 from Rs. 6,427,135,000. On a positive note, loans and advances to customers surged by 22.44%, increasing from Rs. 3,637,214,000 to Rs. 4,453,236,000, indicating aggressive lending and credit expansion.

Income Statement Performance

Miteri Development Bank reported a 31.44% decrease in net interest income, which fell from Rs. 1,934,465,000 in Chaitra 2080 to Rs. 1,326,433,000 in Chaitra 2081, possibly due to tighter interest rate spreads. Despite this, net fee and commission income soared by 113.51%, rising from Rs. 9,522,000 to Rs. 20,330,000, reflecting successful diversification of revenue streams.

Total operating income grew modestly by 7.45%, reaching Rs. 2,244,429,000 from Rs. 2,088,777,000. However, impairment charges dropped significantly from Rs. 263,357,000 to Rs. 21,148,000, contributing to a healthier balance sheet. Operating profit and profit for the period both increased by an impressive 35.41%, reaching Rs. 1,320,800,000 and Rs. 924,456,000, respectively, compared to Rs. 975,411,000 and Rs. 682,787,000 in the previous year.

Key Financial Ratios

Earnings per share (EPS) improved from Rs. 8.19 to Rs. 10.13, a rise of Rs. 1.94, while distributable EPS jumped from Rs. 5.76 to Rs. 10.65. The price-to-earnings (PE) ratio stood at 60.11, reflecting market confidence in the bank's future earnings potential. Net worth per share also increased by 2.97%, from Rs. 135.03 to Rs. 138.

The bank's capital fund to risk-weighted assets (RWA) ratio improved slightly from 33.35% to 34.19%, indicating a stronger capital buffer. The non-performing loan (NPL) ratio decreased from 2.63% to 0.78%, showcasing improved asset quality. The credit-to-deposit ratio rose from 63.49% to 83.38%, reflecting higher lending activity relative to deposits. The base rate dropped from 10.14% to 7.69%, while the interest rate spread remained stable at 4.6%.