Shangrila Development Bank Limited has published its unaudited fourth-quarter financial results for FY 2024/25, reporting a 46.69% increase in net profit to Rs. 889.9 million, up from Rs. 606.6 million in the previous fiscal year.

The strong earnings growth was primarily driven by a sharp decline in impairment charges, along with higher net interest income and improved operating revenue. During the review period, impairment charges fell from Rs. 345.4 million to Rs. 91.3 million, while net interest income increased 16.83% to Rs. 2.42 billion. Operating income rose 19.98% to Rs. 2.95 billion, and operating profit surged 52.98% to Rs. 1.35 billion.

Despite the improvement in profitability, the bank's non-performing loan (NPL) ratio increased from 5.52% to 6.87%. The bank mobilized Rs. 56.92 billion in deposits and extended Rs. 45.87 billion in loans, maintaining a credit-to-deposit ratio of 83.37%. Lower cost of funds and a reduced base rate also reflected improved funding efficiency.

The bank reported distributable profit of Rs. 492.3 million, with earnings per share (EPS) rising to Rs. 23.83. Distributable EPS reached Rs. 13.19, indicating stronger dividend distribution potential compared to the previous year. Net worth per share stood at Rs. 169.50.