Nabil Bank Reports 6.51% Decline in Net Profit for Q1 FY 2080/81 Amidst Strong Core Business Growth; NPL at 3.69%
Fri, Nov 3, 2023 7:39 AM on Financial Analysis, Company Analysis, Latest,
Nabil Bank Limited (NABIL) has released its comprehensive financial report for the first quarter of the fiscal year 2080/81, revealing noteworthy insights into the bank's performance.
In this quarterly review, the bank experienced a decrease in its net profit by 6.51%. The net profit declined from Rs. 1.57 Arba in the first quarter of FY 2079/80 to Rs. 1.46 Arba in the corresponding quarter of FY 2080/81.
Despite the decrease in net profit, the bank demonstrated resilience and stability in various aspects of its operations. NABIL Bank has Rs. 3.6 Arba as distributable profit after PL Appropriation and Regulatory Adjustments in the same quarter.
The bank experienced a positive trajectory in its customer deposits, witnessing a notable increase of 4.54% to reach Rs. 4.14 Kharba, compared to the immediate previous year ending. Similarly, loans and advances to customers exhibited growth, escalating by 6.27% to Rs. 3.53 Kharba compared to the immediate previous year ending. The core business income, reflected in the Net Interest Income, showed a substantial uptick, rising by 13.51% to reach Rs. 4.17 Arba in comparison to the corresponding quarter of the previous year. Meanwhile, the impairment charges have risen by 11.90%.
NABIL's financial structure and standing also reflect a strong foundation. The paid-up capital stands at Rs. 27.05 Arba, complemented by Rs. 28.39 Arba in reserves and surplus. However, the Non-Performing Loan (NPL) increased to 3.69%, an aspect that requires continued attention.
In terms of per-share performance metrics, the annualized earnings per share (EPS) of the Bank stood at Rs. 21.72, while the Net worth per share was reported at Rs. 218.27. Notably, the company traded at a Price/Earnings (P/E) multiple of 26.34 times.
Nabil Bank Limited's first-quarter financial performance demonstrates a mixed scenario, with positive growth in core business income but a decline in net profit. The bank aims to address the challenges posed by the increase in Non-Performing Loans while continuing to bolster its financial reserves and customer-centric services.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nabil Bank Limited | ||
|---|---|---|---|
| Q1 2080/81 | Q1 2079/80 | Difference | |
| Paid Up Capital | 27,056,997.00 | 27,056,997.00* | 0.00% |
| Retained Earnings | 3,609,801.00 | 3,961,099.00* | -8.87% |
| Reserves | 28,390,497.00 | 27,070,722.00* | 4.88% |
| Deposits | 414,853,856.00 | 396,843,499.00* | 4.54% |
| Loans & Advances | 353,566,488.00 | 332,698,854.00* | 6.27% |
| Net Interest Income | 4,173,946.00 | 3,677,179.00 | 13.51% |
| Personnel Expenses | 1,396,686.00 | 822,294.00 | 69.85% |
| Impairment Charges | 1,111,667.00 | 993,418.00 | 11.90% |
| Operating Profit | 2,126,142.00 | 2,230,446.00 | -4.68% |
| Net Profit | 1,469,300.00 | 1,571,537.00 | -6.51% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 3,609,801.00 | ||
| Capital Adequacy (%) | 11.86 | 13.11 | -9.53% |
| NPL (%) | 3.69 | 2.33 | 58.37% |
| Cost of Fund (%) | 7.89 | 7.91 | -0.25% |
| EPS (In Rs.) | 21.72 | 23.23 | -6.51% |
| Net Worth per Share (In Rs.) | 218.27 | 214.69 | 1.67% |
| Qtr end PE Ratio (times) | 26.34 | ||
| Qtr End Market Price | 572.1 | - | - |
