Citizens Bank sees profit drop despite higher income

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Bibas Thapa
Bibas Thapa is a dedicated share market blogger from Nepal. He provides simple and easy-to-understand daily updates on NEPSE trends, stock movements, and weekly highlights to...
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Citizens Bank International (CZBIL) has posted its unaudited fourth-quarter results for the fiscal year, showing growth in income but a slight drop in profit.

By the end of Ashad 2082, the bank recorded Rs. 1.29 billion in net profit down 2.08% from Rs. 1.32 billion a year ago. The main reason is a rise in non-performing loans (NPLs) from 4.10% to 4.94%, which pushed impairment charges from Rs. 1.72 billion to Rs. 2.67 billion.

Even though net interest income grew 11.20% and fee income jumped 19.74%, these loan losses ate into operating profit and net profit.

ParticularsAshad 2082Ashad 2081Change
Net Profit (Rs. ‘000)1,293,3211,320,731-2.08%
Net Interest Income6,364,9735,723,81911.20%
Fee & Commission Income1,347,0511,124,96919.74%
Total Operating Income8,124,4107,056,93315.13%
Operating Profit2,000,9792,048,580-2.32%
EPS (Rs.)8.768.94-0.19
Distributable Profit (Rs. ‘000)775,452613,242—
Distributable EPS (Rs.)5.254.32—
PE Ratio26.06——
Net Worth Per Share (Rs.)155.42151.81—
Paid-up Capital (Rs. ‘000)14,769,01214,200,9744.00%
Reserves & Surplus (Rs. ‘000)8,184,9467,373,39111.00%
Deposits from Customers (Rs. ‘000)211,500,793189,236,66811.77%
Loans & Advances (Rs. ‘000)168,956,818153,343,65010.18%
Non-Performing Loan (%)4.944.10+0.84
Credit to Deposit Ratio (%)81.9181.84—
Base Rate (%)6.258.26-2.01
Interest Rate Spread (%)3.643.99-0.35

For investors, the results show strong revenue growth but also a warning sign — rising bad loans are putting pressure on profits.

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Bibas Thapa is a dedicated share market blogger from Nepal. He provides simple and easy-to-understand daily updates on NEPSE trends, stock movements, and weekly highlights to help readers stay informed.
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