BNBL makes Nu 768mn net profit in 2021

The bank had a loss of Nu 646.97mn in 2020

The financial statement of Bhutan National Bank Limited (BNBL) revealed a profit of Nu 768mn in 2021 against a loss of Nu 646.97mn in 2020.

The growth in net profit is attributed to the reversal of impairment charges of Nu 291.27mn due to improvement in some loans, supplemented by an increase in non-interest income by Nu 60.03mn and a decrease in staff cost by Nu 11.54mn.

However, BNBL earned a total income of Nu 1.3bn of which Nu 1.17bn is the net interest income 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.

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.

According to the BNBLโ€™s financial income for the year 2021, the interest income grew by Nu 279.93mn of 8.28%, and that of interest expenses by Nu 543.16mn by 28.04%. The bank had a decrease in net interest income by Nu 263.23mn compared to 2020.

The bankโ€™s total business as of the end of 2021 stood at Nu 77.7mn which has increased by Nu 8,435.62mn with 12.17% as compared to the 2020 year-end position.

The report also states that both the loans and deposits growth contributed to total business growth. However, the growth is recorded more in deposits by 15.23% of Nu 5,902.16mn as against loans that have grown by 8.30% of Nu 2,533.46mn.

Kinley Yonten from Thimphu