Nepal Bank Q4 Major Highlight: Core Business (Interest Income) Increases by Considerable Margin Positively Affecting Net Profits
Sat, Aug 5, 2023 10:51 AM on Financial Analysis, Latest,
Nepal Bank Limited (NBL) has published its fourth quarter report for the recently concluded financial year 2079-80 with a steady increase of 16.70 percent in its Net Profits. As of FY 2079-80 end, the company has made Rs. 3.41 Arba as opposed to Rs. 2.92 which the company had profited in the corresponding quarter of FY 2078-79.
Both the Operating Profit and Net Interest Income of the company have witnessed considerable improvements of 21.19 and 40.61 percent, respectively. The company has earned Rs. 4.40 Arba and Rs. 9. 44 Arba through Operating profit and core business revenue, respectively as of FY 2079-80’s end.
Nepal Bank's major highlight in Q4 was its ability to increase its core business (interest income) by a considerable margin.
The impairment allocation of the commercial bank has increased by 37. 65 percent totaling Rs. 1.17 Arba as of FY 2079-80’s end.
The financial institution has Rs. 97.33 crores in the form of distributable profit for its shareholders.
Despite an Earning per Share (EPS) ratio of Rs. 23.22 distributable profit per share is only Rs. 6.62, alongside a Net worth per Share of Rs. 248.94.
NBL maintains Rs. 14.69 in paid-up capital and has Rs. 21.88 Arba in the form of reserves and surplus, which puts the bank in good financial standing.
Major Financial Highlights:
| Particulars (In Rs '000) | Nepal Bank Limited | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 14,694,022.93 | 14,405,904.83 | 2.00% |
| Share Premium | - | - | - |
| Retained Earnings | 973,363.90 | 3,422,196.16 | -71.56% |
| Reserves | 20,911,484.83 | 17,635,512.36 | 18.58% |
| Deposits | 244,548,889.23 | 196,076,149.28 | 24.72% |
| Loans & Advances | 178,888,687.24 | 171,480,501.87 | 4.32% |
| Net Interest Income | 9,441,553.68 | 6,714,586.97 | 40.61% |
| Personnel Expenses | 3,779,167.34 | 2,451,901.30 | 54.13% |
| Impairment charge/(reversal) for loans and other losses | 1,175,089.41 | 853,658.80 | 37.65% |
| Operating Profit | 4,408,281.66 | 3,637,463.87 | 21.19% |
| Net Profit | 3,411,526.81 | 2,923,277.57 | 16.70% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 973,363.90 | 3,422,196.16 | -71.56% |
| Distributable Profit per Share | 6.62 | 23.76 | -72.14% |
| Capital Adequacy (%) | 14.79 | 15.04 | -1.66% |
| Non Performing Loan (NPL) (%) | 2.85 | 1.83 | 55.74% |
| Cost of Fund (%) | 6.97 | 5.94 | 17.34% |
| EPS (In Rs.) | 23.22 | 20.29 | 14.41% |
| Net Worth per Share (In Rs.) | 248.94 | 246.17 | 1.12% |
| Base Rate (%) | 9.92 | 7.99 | 24.16% |
| Qtr end PE Ratio (times) | 10.72 | - | - |
| Qtr End Market Price | 249 | - | - |
