KATHMANDU: Nepal’s banking sector reported a 18.78% decline in profits for the first quarter of FY 2025/26, totaling Rs 13.15 billion compared to Rs 16.18 billion last year.

The drop is attributed to high liquidity and loan recovery challenges, with 15 of 20 banks posting lower profits.

Global IME Bank led with Rs 1.85 billion, up 23%, followed by Nabil Bank (Rs 1.75 billion) and Prime Commercial Bank (Rs 1.25 billion).

Everest and Kumari Banks also crossed the Rs 1 billion mark. NMB, Himalayan Bank, Standard Chartered Bank, Rastriya Banijya Bank, Nepal Bank, and Prabhu Bank posted moderate profits, with Prabhu Bank dropping 46% and Rastriya Banijya surging 295%.

Sanima Bank gained 13.86%, while Laxmi Sunrise and Siddhartha Banks saw declines. NIC Asia rose 10.53%, whereas Nepal Investment Mega Bank and Agricultural Development Bank fell sharply by over 96%.

Citizens Bank incurred a Rs 220.4 million loss, compared to last year’s profit of Rs 188.2 million.

Five banks earned over Rs 1 billion, five showed profit growth, and one bank reported a loss.