Laxmi Sunrise Bank Records 1.66% Net Profit Decline in Q2; Impairment Charges Surge by 376.87% Despite Strong Net Interest Income Growth
Sun, Jan 21, 2024 9:06 AM on Financial Analysis, Company Analysis, Latest,
Laxmi Sunrise Bank Limited (LSL) unveiled its financial performance for Q2 of FY 2080/81, revealing a modest 1.66% decline in net profit to Rs. 1.05 Arba, compared to the corresponding period in the previous fiscal year where it earned Rs. 1.07 Arba.
The bank demonstrated noteworthy growth in key areas, with a remarkable 104.66% surge in net interest income, reaching Rs. 5.65 Arba, and an increase in operating profits to Rs. 1.44 Arba for the same period.
Despite a nearly 4.84% rise in customer deposits to Rs. 3.1 Kharba, loans and advances experienced a marginal 0.07% decline. Notably, impairment charges spiked significantly by 376.87%, amounting to Rs. 2.73 Arba in Q2 of FY 2080/81.
The annualized earnings per share (EPS) for the year stand at Rs. 9.14, with a net worth per share recorded at Rs. 166.62. However, an evident concern arises as Non-Performing Loans (NPL) witnessed a substantial 199.36% increase, soaring to 4.67% in the second quarter of the current fiscal year— a notable contrast to the 1.56% recorded in the corresponding quarter of the previous fiscal year.
LSL reported negative distributable profits of Rs. 81.18 Crores, maintaining a paid-up capital of Rs. 23.18 Arba, and reserves and surplus amounting to Rs. 16.26 Arba in Q2 of FY 2080/81.
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Laxmi Sunrise Bank | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 23,187,155.00 | 21,670,238.00 | 7.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | -811,864.00 | 1,728,332.00 | -146.97% |
| Reserves | 16,260,042.00 | 14,826,362.00 | 9.67% |
| Deposits | 310,591,321.00 | 296,243,475.00 | 4.84% |
| Loans & Advances | 247,691,314.00 | 247,870,138.00 | -0.07% |
| Net Interest Income | 5,658,331.00 | 2,764,804.00 | 104.66% |
| Personnel Expenses | 1,802,336.00 | 870,986.00 | 106.93% |
| Impairment Charges | 2,732,609.00 | 573,034.00 | 376.87% |
| Operating Profit | 1,445,052.00 | 1,493,119.00 | -3.22% |
| Net Profit | 1,059,210.00 | 1,077,115.00 | -1.66% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustment | -811,864.00 | 1,497,098.00 | -154.23% |
| Capital Adequacy (%) | 12.67 | 12.94 | -2.09% |
| Cost of Fund (%) | 7.61 | 8.91 | -14.59% |
| NPL (%) | 4.67 | 1.56 | 199.36% |
| Annualized EPS (In Rs.) | 9.14 | 9.94 | -8.10% |
| Net Worth per Share (In Rs.) | 166.62 | 176.39 | -5.54% |
| Qtr end PE Ratio (times) | 19.06 | ||
| Qtr End Market Price | 174.1 | - | |
