Nepal Investment Mega Bank Reports 38.61% Profit Surge in Q3; EPS Climbs to Rs. 17.74 Despite Drop in Net Interest Income
Sun, Apr 20, 2025 8:56 AM on Financial Analysis, Company Analysis, Latest,
Nepal Investment Mega Bank Limited (NIMB) has registered a significant 38.61% rise in net profit, reaching Rs. 4.54 Arba in the third quarter of FY 2081/82, up from Rs. 3.27 Arba in the same period last year. The bank also reported a healthy improvement in operating profit, which climbed 22.26% to Rs. 6.61 Arba.
On the capital front, reserves inched up by 0.68% to Rs. 31.95 Arba. Retained earnings improved significantly, though still negative at Rs. -1.10 Arba, from Rs. -5.69 Arba previously—a noteworthy 80.61% improvement. Paid-up capital remained unchanged at Rs. 34.13 billion. Meanwhile, net interest income fell slightly by 6.50%, landing at Rs. 10.31 Arba.
Deposits surged by 13.01% to Rs. 4.55 Kharba, while loans and advances expanded by 7.31% to Rs. 3.27 Kharba. The cost of funds decreased significantly by 33.18%, improving margins despite higher personnel expenses and a 36.61% increase in NPL, now at 1.53%.
The bank’s EPS rose to Rs. 17.74, with a PE ratio of 11.92 times at a quarter-end market price of Rs. 211.51. Net worth per share also climbed to Rs. 190.39, an increase of 7.99%.
The distributable loss after regulatory adjustments stood at a negative of Rs. 1.10 Arba.
Major Highlights
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Nepal Investment Mega Bank | ||
|---|---|---|---|
| Q3 2081/82 | Q3 2080/81 | Difference | |
| Paid Up Capital | 34,128,595.00 | 34,128,595.00* | 0.00% |
| Retained Earnings | -1,104,144.00 | -5,693,232.00* | -80.61% |
| Reserves | 31,953,556.00 | 31,737,094.00* | 0.68% |
| Deposits | 455,890,952.00 | 403,416,956.00* | 13.01% |
| Borrowings | 5,494,000.00 | 5,334,000.00* | 3.00% |
| Loans and advances to Customers | 327,823,499.00 | 305,494,819.00* | 7.31% |
| Net Interest Income | 10,314,926.00 | 11,032,517.00 | -6.50% |
| Personnel Expenses | 3,083,189.00 | 2,691,023.00 | 14.57% |
| Impairment Charges | 1,198,166.00 | 3,049,775.00 | -60.71% |
| Operating Profit | 6,611,410.00 | 5,407,878.00 | 22.26% |
| Net Profit | 4,540,005.00 | 3,275,277.00 | 38.61% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -1,104,144.00 | -5,081,626.00 | -78.27% |
| Capital Adequacy (%) | 13.33 | 13.27 | 0.45% |
| NPL% | 1.53 | 1.12 | 36.61% |
| Cost of Fund (%) | 4.39 | 6.57 | -33.18% |
| Annualized EPS (In Rs.) | 17.74 | 12.80 | 38.61% |
| Net Worth per Share (In Rs.) | 190.39 | 176.31 | 7.99% |
| Qtr end PE Ratio (times) | 11.92 | ||
| Qtr End Market Price | 211.51 | - | - |
