NIFRA Reports Decline in Net Profit, Significant Growth in Fee and Commission Income
Author
Nepse trading
Nepal Infrastructure Bank Limited (NIFRA) has published its financial statements for the second quarter of FY 2081 (2024-25). According to the report, the bank has shown a decline in some key financial indicators compared to the same period last year, particularly in net profit, interest income, and operating profit.
6.96% Decline in Net Profit
By the end of Poush (mid-January), the bank earned a net profit of NPR 641.9 million, marking a 6.96% decline compared to the NPR 689.9 million recorded during the same period last year.
23.33% Drop in Interest Income
The bank's total net interest income fell by 23.33% to NPR 1.44 billion. This decline in interest income has directly impacted the overall profitability of the bank.
158.65% Increase in Fee and Commission Income
Conversely, the bank witnessed remarkable growth of 158.65% in fee and commission income, which surged to NPR 14.53 million. This indicates the success of the bank's efforts to diversify its revenue streams.
Other Key Financial Indicators
Total Operating Income: Declined by 22.58% compared to the previous year.
Operating Profit: Decreased by 6.94%.
Earnings Per Share (EPS): Fell by NPR 0.45 to NPR 5.94.
Net Worth Per Share: Stood at NPR 116.54.
Capital Fund to Risk-Weighted Assets (RWA): Improved to 80.12% from last year.
Non-Performing Loans (NPL): Remained stable at 0.30%.
Credit-to-Deposit Ratio: Improved to 69.54% from 71.85% last year.
Reserve Fund and Distributable Profit
As of Poush-end, the bank has accumulated NPR 3.57 billion in its reserve fund and NPR 522.1 million in distributable profit.
Stable Paid-Up Capital
The bank's paid-up capital remains steady at NPR 21.6 billion.
Overall Analysis
The current financial report indicates that while the bank faced challenges from declining interest income, it has made strides in developing new income sources, evidenced by the significant rise in fee and commission income. Despite declines in some major financial indicators, the bank must take corrective measures in the coming quarters to maintain stability.
