Standard Chartered Bank Nepal Maintains Triple A Rating for Fifth Consecutive Year

In a testament to its unwavering commitment to financial excellence, Standard Chartered Bank Nepal has once again secured the prestigious Triple A rating from ICRA Nepal, marking the fifth consecutive year of this esteemed recognition.

The AAA rating, pronounced as ICRA NP issuer rating triple A, symbolizes the highest level of safety and assurance that the bank can meet its financial obligations punctually. This reaffirmation underscores the bank’s robust financial standing and prudent risk management practices.

The rating is founded on a thorough assessment of various financial indicators, including the bank’s Capital to Risk-Weighted Assets Ratio (CRAR) and non-performing loans (NPL). Notably, Standard Chartered Bank Nepal boasts a commendably low NPL ratio of 1.60 percent, significantly outperforming the industry average of 3.63 percent, indicative of its sound asset quality and risk management strategies.

ICRA Nepal also considers the bank’s extensive operational history since 1987 and its strong parentage as a ~70% subsidiary of the Standard Chartered Group. The bank’s healthy deposit profile, coupled with its competitive positioning and global brand reputation, further solidifies its financial strength and stability.

Moreover, the bank’s profitability indicators stand out, with a return on assets (ROA) and return on net worth (RoNW) of 2.32% and approximately 11% respectively in H1FY2024, surpassing industry averages.

While recognizing these strengths, ICRA Nepal also highlights certain challenges, including high portfolio concentration risks and exposure to operational and regulatory risks inherent in the industry. Nevertheless, the reconfirmation of the AAA rating for five consecutive years underscores Standard Chartered Bank Nepal’s unwavering dedication to excellence and its commitment to serving its stakeholders with integrity and reliability.