Profitability Position and Trend of Everest Bank Limited

Abstract

Commercial banks are the most crucial organizations for economic progress because they mobilize funds, provide credit facilities, and make investments. Commercial banks' profitability reveals their performance level, financial standing, and room for expansion. The purpose of this study is to evaluate Everest Bank Limited's (EBL) profitability condition and forecast the net profit after tax (NPAT) trend. The study relies on secondary data extracted from the Annual Reports of Everest Bank Limited for the fiscal years 2020/21 to 2024/25. The study employs a quantitative research design, and both descriptive and explanatory research approaches are adopted to achieve the research objectives. The profitability position of EBL is evaluated using the Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Besides, the least square trend analysis is performed to predict the trend of NPAT for EBL. With only slight modifications in its profitability ratios for the fiscal years 2020/2021 through 2024/2025, the analysis concludes that Everest Bank Limited has a satisfactory profitability position. The average (ROA, ROE and NPM) as for bank was 1.17%, 12.23% and 15.53%. The analysis discovered that the profitability performance of this institution steadily improved from FY 2020/2021 all the way to FY 2024/2025 where FY 2024/25s ROE and NPM was at their max. The trend analysis (NPAT) indicates a steady increase in EBL's net profit after tax from the fiscal year 2025/2026 to FY 2029/2030. As analysed, Everest Bank Limited has a sound financial position and has availed adequate return from its asset, equity and sales for sustainable growth in profitability.