Nepal Infrastructure Bank Records 9.30% Growth in Q1 Net Profit for FY 2080/81, Impairment Charges Decline by 55.21%
Thu, Nov 2, 2023 10:06 AM on Financial Analysis, Company Analysis, Latest,
Nepal Infrastructure Bank Limited (NIFRA) unveiled its first-quarter financial report for the fiscal year 2080/81, showcasing decent growth and financial resilience. The bank registered a noteworthy 9.30% increase in net profit, surging from Rs. 37.86 crores to Rs. 41.38 crores compared to the corresponding quarter in the previous year, signalling a steady upward trajectory.
Noteworthy aspects of NIFRA's performance include a reduction in impairment charges by an impressive 55.21%, a significant achievement enhancing the company's financial health and stability. This reduction to Rs. 9.942 Lakhs reflects a prudent and efficient risk management strategy.
The company's financial foundation appears strong, with a paid-up capital of Rs. 21.6 Arba and reserves and surplus reaching Rs. 2.59 Arba, further cementing its stability in the market.
NIFRA's core operations exhibited remarkable performance, with deposits from customers standing at Rs. 82.33 crores and loans and advances reaching Rs. 18.93 Arba. The bank's net interest income, a key indicator of its core business revenue, increased to Rs. 70.15 Crore in this quarter.
Operating profit witnessed a substantial uptick, increasing by 9.28% to Rs. 59.11 Crore, underscoring the bank's efficient operational strategies and growth-oriented approach.
Annualized Earnings per share (EPS) stood at Rs. 7.66, while the net worth per share reached Rs. 112.02. NIFRA was observed trading at a P/E multiple of 24.36 times.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Infrastructure Bank Limited | ||
|---|---|---|---|
| Q1 2080/81 | Q1 2079/80 | Difference | |
| Paid Up Capital | 21,600,000.00 | 21,600,000.00 | 0.00% |
| Reserves and Surplus | 2,596,633.00 | 2,112,014.00 | 22.95% |
| Deposits | 823,389.00 | 395,618.00 | 108.13% |
| Loans & Advances | 18,933,970.00 | 17,810,613.00 | 6.31% |
| Net Interest Income | 701,545.00 | 655,700.00 | 6.99% |
| Personnel Expenses | 89,625.00 | 83,005.00 | 7.98% |
| Impairment Charges | 9,942.00 | 22,198.00 | -55.21% |
| Operating Profit | 591,189.00 | 540,970.00 | 9.28% |
| Net Profit | 413,899.00 | 378,679.00 | 9.30% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 212,431.00 | ||
| Capital Adequacy (%) | 94.67 | 104.64 | -9.53% |
| Cost of Fund (%) | 7.65 | 9.40 | -18.62% |
| EPS (In Rs.) | 7.66 | 7.01 | 9.30% |
| Net Worth per Share (In Rs.) | 112.02 | 109.78 | 2.04% |
| Qtr end PE Ratio (times) | 24.36 | - | - |
| Qtr End Market Price | 186.7 | - | - |
