Machhapuchchhre Bank Struggles with 85.82% Spike in NPLs and a 21.45% Drop in Q2 Net Profit
Fri, Jan 19, 2024 9:01 AM on Financial Analysis, Company Analysis, Latest,
Machhapuchchhre Bank Limited (MBL) recently disclosed its financial performance for the second quarter of the fiscal year 2080/81, shedding light on key aspects.
During this quarter, MBL saw a 21.45% decrease in net profit, dropping from Rs. 1.02 Arba in Q2 FY 2079/80 to Rs. 80.53 Crores in Q2 FY 2080/81.
Customer deposits took a hit, decreasing by 1.10% to Rs. 1.52 Kharba, but loans and advances to customers grew by 2.99%, reaching Rs. 1.29 Kharba compared to the previous year.
Net Interest Income, a measure of core business income, decreased by 5.56% to Rs. 2.63 Arba. On the positive side, impairment charges fell by 21.57%.
The bank's paid-up capital is Rs. 11.62 Arba, with Rs. 5.44 Arba in reserves and surplus. However, Non-Performing Loans (NPL) increased to 2.26%, up by 85.82% from the same quarter the previous year.
In terms of per-share performance, the annualized earnings per share (EPS) stood at Rs. 13.86, and Net worth per share was Rs. 144.97. The company traded at a Price/Earnings (P/E) multiple of 14.65 times. It's worth noting the NPL increase, which needs ongoing attention.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Machhapuchchhre Bank Limited | ||
|---|---|---|---|
| Q2 2080/81 | Q2 2079/80 | Difference | |
| Paid Up Capital | 11,621,357.27 | 10,257,155.58* | 13.30% |
| Share Premium | 30,881.77 | 30,881.77* | 0.00% |
| Retained Earnings | -246,986.19 | 1,448,531.60* | -117.05% |
| Reserves | 5,442,718.44 | 4,415,217.11* | 23.27% |
| Deposits | 152,485,254.41 | 154,179,631.82* | -1.10% |
| Loans & Advances | 129,912,900.90 | 126,137,682.80* | 2.99% |
| Net Interest Income | 2,637,497.97 | 2,792,906.39 | -5.56% |
| Personnel Expenses | 1,262,577.06 | 1,228,146.58 | 2.80% |
| Impairment Charges | 238,588.45 | 304,222.00 | -21.57% |
| Operating Profit | 1,279,233.39 | 1,473,578.85 | -13.19% |
| Net Profit | 805,380.90 | 1,025,262.14 | -21.45% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -246,986.19 | 1,058,060.24 | - |
| Capital Adequacy (%) | 13.06 | 13.20 | -1.06% |
| Cost of Fund (%) | 7.26 | 8.84 | -17.87% |
| NPL (%) | 2.62 | 1.41 | 85.82% |
| Annualized EPS (In Rs.) | 13.86 | 19.99 | -30.67% |
| Net Worth per Share (In Rs.) | 144.97 | 157.47 | -7.93% |
| Qtr end PE Ratio (times) | 14.65 | ||
| Qtr End Market Price | 203 | - | |
