BNBL makes Nu 237mn profit in the first half of 2022

The net interest income of the bank dropped by Nu 55mn compared to the first half of last year

The financial statement of the first half of Bhutan National Bank Limited (BNBL) this year revealed a profit of Nu 237mn. The profit dropped by Nu 925.5mn as compared to the profit of the first six months, last year.

The growth in net profit is attributed to the reversal of impairment charges of Nu 674.77mn due to improvement in some loans, supplemented by other losses and a decrease in staff cost.

However, BNBL earned a net interest income of Nu 622.53mn of which Nu 677.49mn is the net interest income last year.

According to the financial statement of the bank, total assets, liabilities, and equity have increased in the first half of this year by Nu 2.5bn compared to the first six months of the last year.

The bank prepares two sets of financial statements, one under the previous Generally Accepted Accounting Principles (GAAP) and another under the Bhutanese Accounting Standards (BAS) as required by the Accounting and Auditing Standards Board of Bhutan.

Last year, the statement of financial position shows that the balance sheet size of the bank under the GAAP has increased by about 13%, which increased by 9% compared to the previous year. It, under the BAS, grew by 15% with a growth of 6%.

The growth in the balance sheet size under both the GAAP and BAS was primarily due to a substantial increase in deposits. The net worth under the GAAP stood at Nu 7,633.64mn compared to Nu 6,941.17mn at the end of the financial year, registering a growth of almost 10%.

Under the BAS, the figure stood at Nu 6,957.35mn compared to the previous Nu 6,314.09mn, registering a matching growth of 10% from that of 2020, which is attributed to an increase in profit.

Meanwhile, the financial statement for the first six months of this year of the bank under the GAAP had decreased to Nu 168.32mn compared to Nu 325.05mn last year. It has dropped Nu 237.33mn under BAS compared to Nu 1.16bn last year.

According to the BNBLโ€™s financial income for this year, the interest income plunged by Nu 925.5mn, and that of interest expenses by Nu 745.90mn. The bank had a decrease in net interest income by Nu 622.53mn compared to 2021.

The bankโ€™s total operating expenses stood above Nu1bn which has dropped by Nu 1.3bn as compared to the 2021 first six months of bank statement for the period ended in June this year.

The report also states that both the loans and deposits growth contributed to total business growth. The profit before tax from continuing operations dropped to Nu 299.83mn compared to last year which was Nu 1.6bn.

In addition, net fee and commission income and other operating income have also increased by Nu 56mn, and 66.82mn respectively.

Kinley Yonten from Thimphu