Miteri Development Bank Sees 35.41% Rise in Net Profit Despite Decline in Core Interest Income; EPS Reached Rs. 10.13
Wed, Apr 16, 2025 1:13 PM on Financial Analysis, Company Analysis, Latest,
Miteri Development Bank Limited (MDB) has published its unaudited financial report for the third quarter of the fiscal year 2081/82, showcasing a 35.41% surge in net profit. The bank posted a net profit of Rs. 9.24 crores, up from Rs. 6.82 crores reported in the same quarter of the previous fiscal year.
The growth in profitability was supported by a sharp drop of 91.85% in impairment charges and a notable increase of 35.41% in operating profit, which reached Rs. 13.20 crores. The bank's paid-up capital also rose by 9.51%, reaching Rs. 1.21 Arba, while its distributable profit surged by 100.55% to stand at Rs. 10.83 crores.
Despite the rise in profitability, Miteri Development Bank witnessed a decline in its core banking income. Net interest income dropped significantly by 31.44%, totaling Rs. 13.26 crores, compared to Rs. 19.34 crores in the corresponding period of the previous year.
Similarly, deposits shrank by 3.90%, amounting to Rs. 6.17 Arba, while retained earnings fell by 30.46%. On the other hand, loans and advances grew by a solid 22.44%, reaching Rs. 4.45 Arba. The bank's personnel expenses also rose by 10.09%, indicating an increase in operating costs.
In terms of financial indicators, the bank displayed strong asset quality, with its Non-Performing Loan (NPL) ratio dropping to 0.78% from 2.63%. Its capital adequacy ratio improved to 34.19%, while the cost of fund declined significantly to 5.61% from 8.29%.
The annualized earnings per share (EPS) increased by 23.65% to Rs. 10.13. However, the net worth per share decreased by 3.71%, now standing at Rs. 138. At the end of Q3, the bank's shares were trading at Rs. 608.87, with a price-to-earnings (PE) ratio of 60.11 times.
Major Highlights:
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Miteri Development Bank | ||
|---|---|---|---|
| Q3 2081/82 | Q3 2080/81 | Difference | |
| Paid Up Capital | 1,217,100.00 | 1,111,426.57* | 9.51% |
| Share Premium | - | - | - |
| Retained Earnings | 108,300.49 | 155,739.79* | -30.46% |
| Reserves | 354,250.54 | 325,812.22* | 8.73% |
| Deposits | 6,176,498.26 | 6,427,135.55* | -3.90% |
| Loans & Advances | 4,453,236.14 | 3,637,214.54* | 22.44% |
| Net Interest Income | 132,643.93 | 193,465.24 | -31.44% |
| Personnel Expenses | 62,010.86 | 56,328.07 | 10.09% |
| Impairment Charges/(Reversal) for loans and advances | 2,148.49 | 26,357.14 | -91.85% |
| Operating Profit | 132,080.36 | 97,541.38 | 35.41% |
| Net Profit | 92,456.26 | 68,278.97 | 35.41% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 108,300.49 | 54,000.42 | 100.55% |
| Capital Adequacy (%) | 34.19 | 33.35 | 2.52% |
| Non- Performing Loan (NPL)(%) | 0.78 | 2.63 | -70.34% |
| Cost of Fund (%) | 5.61 | 8.29 | -32.33% |
| Annualized EPS (In Rs.) | 10.13 | 8.19 | 23.65% |
| Net Worth per Share (In Rs.) | 138.00 | 143.33 | -3.71% |
| Qtr end PE Ratio (times) | 60.11 | ||
| Qtr End Market Price | 608.87 | - | - |
