NIFRA’s Net Profit Declines Despite Rise in Distributable Earnings
Nepal Infrastructure Bank reported a 13.86% drop in net profit, but distributable earnings rose by nearly 76% to Rs 1.17 billion.
Nepal Infrastructure Bank Ltd. (NIFRA) has posted a 13.86% year-on-year decline in net profit, amounting to Rs 1.14 billion for the fiscal year ended mid-July 2025. The drop comes primarily due to a significant reduction in net interest income, which contracted by 25.51% over the review period.
Despite the decline in bottom-line earnings, the bank’s distributable profit surged by 76%, reaching Rs 1.17 billion compared to Rs 667.9 million a year earlier. The sharp rise indicates stronger internal earnings resilience despite headwinds from interest margins.
NIFRA’s fee and commission income rose by 79.73%, partly offsetting losses from shrinking interest spreads. However, total operating income dropped 25.03%, and operating profit fell 13.69% compared to the same period last year.
The bank’s earnings per share (EPS) declined by 86 paisa, settling at Rs 5.30. As of mid-July 2025, NIFRA reported a price-to-earnings (P/E) ratio of 59.96 times and a net worth per share of Rs 118.88.
With a paid-up capital of Rs 21.6 billion, NIFRA has accumulated Rs 4.07 billion in its reserve fund. Over the past year, the bank’s deposit base grew by a staggering 826.65%, while its loan portfolio expanded by 18.90%.