Shangrila Development Bank Limited has reported a strong financial performance for the fourth quarter of fiscal year 2082/83, posting a significant increase in profitability.

According to the bank's unaudited financial statements, net profit rose by 46.69% to Rs. 889.9 million, compared to Rs. 606.7 million in the corresponding period of the previous fiscal year.

The improvement was primarily driven by a sharp decline in impairment charges, which fell by 73.55% to Rs. 91.3 million. Meanwhile, net interest income increased by 16.83% to Rs. 2.42 billion, while operating profit surged 52.98% to Rs. 1.35 billion.

The bank's distributable profit reached Rs. 492.3 million, indicating a potential dividend capacity of around 13.19% based on the latest financial results.

Despite stronger earnings, the bank's non-performing loan (NPL) ratio increased to 6.87%. However, its cost of funds declined from 5.01% to 3.54%, reflecting improved funding efficiency. The bank also reported earnings per share (EPS) of Rs. 23.83, net worth per share of Rs. 169.50, and a capital adequacy ratio of 14.63%