Commercial banks net profits rose by half and fell by half.

All commercial banks made available the unaudited financial results for the fourth quarter of the previous fiscal year by Monday. Despite their rawness, the financial statements for the final quarter of the previous fiscal year are highly significant to investors. Based on the financial disclosures made by the companies, 10 of the 20 companies have seen a rise in net profit, while the remaining 10 have seen a decrease.

According to statistics, 20 commercial banks have made over 64 billion and 150 million rupees in profit as of the most recent fourth quarter. This amount was more than 56.57 billion rupees as of this time last year. The net profit of commercial banks has improved by 13.40 percent in comparison to the previous year.

Among the companies that have had a rise in net profit from the prior year, Prabhu Bank is ranked highest. In the fourth quarter of the previous year, Prabhu Bank had a net profit of over 282 million rupees. During the same period the previous year, the bank made a profit of over 4.48 billion rupees.
The previous year saw NIC Asia Bank post a net profit of over 1 billion 38 million rupees, up from a profit of over 4 billion 44 million rupees. The net profit of NIC Asia Bank dropped significantly the previous year as a result of rising impairment costs and declining net interest income. According to the financial statement of the company, this bank, which earned net interest of over 12.25 billion rupees in the previous year, only made over 10.61 billion rupees.

Prabhu Bank saw a 1,499 percent increase in net profit last year over the prior year. Because of a rise in net interest income and a drop in impairment charges, Prabhu Bank's net profit grew the highest last year. In terms of net interest earnings, Prabhu Bank made over 10.6 billion rupees last year and over 12.2 billion rupees. Although the amount of impairment charges was slightly over 556.8 million rupees the previous year, it was still more than 5.21 billion rupees.

In addition to Prabhu Bank, the following banks have increased their net profit: Kumari Bank, 345 tenths is 67 percent; Prime Commercial, 267.19 percent; Krishi Bikas Bank, 176.23 percent; Himalayan Bank, 81.60 percent; Nepal Investment Mega Bank, 39.71 percent; Lakshmi Sunrise Bank, 32.79 percent; Nabil Bank, 10.23 percent; Everest Bank, 10.07 percent; and Nepal SBI Bank, 2.35 percent. NIC Asia Bank saw the biggest drop in net profit the previous year.

The prior year's impairment charges exceeded 72.9 million rupees, whereas the amount exceeded 2.84 billion rupees in the preceding year. In addition to NIC Asia Bank, Nepal Bank brought in 51.80%, Citizens Bank 27.97%, NMB Bank 27.49%, Machhapuchhre Bank 23.09%, and Global IME Bank 10.13 percent last year.

A decrease of 8.59% has been seen in Sanima Bank's net profit, 4.51% in Standard Chartered Bank, 5.48% in National Commercial Bank, and 4.78% in Siddharth Bank. It looks like impairment charges and net interest income are the main reasons for the decrease in net profit.