BNBL posts record Nu 237mn loss in first half of 2022

The loss dropped by Nu 925mn as compared to the loss of Nu 1,162mn, last year

The financial statement of the first half of Bhutan National Bank Limited (BNBL) this year revealed a loss of Nu 237mn under Bhutanese Accounting Standards (BAS). The loss dropped by Nu 925mn as compared to the loss of Nu 1,163mn for the first six months, last year.

An official from the bank said that the reduction in net loss is mainly attributed to the reduction of impairment charges to Nu 675mn as compared to Nu 2,014mn in the same period last year.

However, BNBL earned a net interest income of Nu 623mn of which Nu 677mn is the net interest income last year under BAS.

According to the financial statement of the bank under BAS, the balance sheet size has increased by Nu 2.59 in the first half of this year 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.

The financial position statement shows that the bank’s balance sheet size has increased by 3.41% and 4.89% under the GAAP and BAS respectively.

The growth in the balance sheet size under both the GAAP and BAS was primarily due to a substantial increase in deposits and loans.

Meanwhile, the financial performance for the first six months of this year of the bank under the GAAP recorded a profit of Nu 168mn compared to a loss of Nu 325mn last year.

An official said that the bankโ€™s total operating expenses stood above Nu 1bn which has dropped by Nu 1.31bn as compared to the 2021 first six months of last year. This is attributed to a substantial decrease in impairment charges this year compared to the same period last year.

The report also states that both the loans and deposits growth contributed to total business growth. While the bank has realized a loss of around Nu 300mn before tax, the loss before tax has substantially decreased as compared to that of Nu 1.61bn in the same period in 2021.

In addition, the bank saw a marginal increase in net fee and commission income and other operating income

Kinley Yonten from Thimphu