Nepal Investment Mega Bank Q2 After Merger: Core Business Revenue Increases by 73.93%, Distributable Profit at Negative Rs 1.60 Arba
Thu, Jan 26, 2023 10:13 AM on Financial Analysis, Stock Market, Latest,
Nepal Investment Mega Bank Limited (NIMB) has published a second-quarter report for FY 2079/80 after the successful merger with a 28.44% growth in net profit.
The bank’s profit has increased from Rs. 1.624 arba in the second quarter of the fiscal year 2078/79 to Rs 2.086 arba in the second quarter of the fiscal year 2079/80.
The merger between Mega Bank Nepal Limited (MEGA) and Nepal Investment Bank Limited (NIB) has been completed and the joint business of the two institutions has been started from Poush 27 i.e January 11, 2023. Hence, the Net profit/(loss) of Mega Bank up to the 26th Poush 2079 has been transferred to retained earnings after necessary appropriation to statutory reserves.
The former Mega Bank endorsed a 7.83% dividend – (4% Bonus) worth Rs. 1.25 Arba for the fiscal year 2078/79. On the other hand, 4% bonus shares worth Rs. 73.23 crores and 7% cash dividend (including tax) worth Rs 1.28 Arba have been by former NIB. These bonus shares have been capitalized by the merged company.
Following the merger, the bank has a total paid-up capital of massive Rs. 34.12 Arba, whereas the reserves stand at Rs. 23.55 Arba and retained earnings at negative Rs 1.60 Arba and has Rs 20.78 Crore as Share Premium.
The bank has deposits from customers of Rs 3.55 Kharba and loans and advances to customers stand at Rs 3.17 Kharba until the second quarter.
The Net Interest Income (Core Business Revenue) has increased by 73.93% to stand at Rs. 4.18 Arba. On the other hand, the bank reports an incline in personnel expenses by 17.89% and impairment charges (provision for possible loss) of Rs. 60.83 Crores.
In the second quarter, the annualized EPS of the bank stands at Rs 12.23. The net worth per share stands at Rs 164.91.
(Note: Since this is a newly merged company, the assets and liabilities have not been compared to the relevant quarter of the previous year and only profit and loss comparison has been taken into account.)
MAJOR FINANCIAL HIGHLIGHTS
| Particulars (In Rs '000) | Nepal Investment Mega Bank Limited | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 34,128,595.00 | ||
| Share Premium | 207,850.00 | ||
| Retained Earnings | -1,604,224.00 | ||
| Reserves | 23,550,126.00 | ||
| Deposits | 355,236,207.00 | ||
| Loans & Advances | 317,893,055.00 | ||
| Net Interest Income | 4,186,364.00 | 2,406,927.00 | 73.93% |
| Personnel Expenses | 980,051.00 | 831,315.00 | 17.89% |
| Provision for Possible Losses | 608,343.00 | ||
| Writeback | 41,389.00 | ||
| Operating Profit | 2,982,448.00 | 2,407,430.00 | 23.89% |
| Net Profit | 2,086,307.00 | 1,624,324.00 | 28.44% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -1,604,224.00 | ||
| Capital Adequacy (%) | 13.28 | 14.47 | -8.22% |
| Cost of Fund (%) | 8.22 | 5.84 | 40.75% |
| EPS (In Rs.) | 12.23 | ||
| Net Worth per Share (In Rs.) | 164.91 | ||
| Qtr end PE Ratio (times) | - | ||
| Qtr End Market Price | - | - | - |
