Net Profit of LBBL Decreases Slightly in Q4; Incurs Massive Spike in Impairment Charges
Fri, Jul 28, 2023 7:21 AM on Financial Analysis, Latest,
Lumbini Bikas Bank Limited (LBBL) has published its fourth quarter report for the recently concluded financial year with a minor reduction in its Net profit by 3.88 percent, compared to the amount the company had profited in the corresponding quarter of FY 2078-79. For Q4 of FY 079-80, the company profited Rs. 61.24 crores.
There has been a massive spike in the impairment charges of the company in the last quarter of FY 079-80, which amounts to Rs. 40.31 crores as opposed to Rs. 3.40 crores that the national development bank had incurred in the corresponding quarter of the FY 078-079.
The Net Interest Income, which is regarded as the core revenue stream, has shown considerable improvement as it has increased by 22. 31 % totaling Rs. 1.87 Arba in the last quarter of the past financial year.
The Non-performing Loan (NPL) has increased in the last quarter of the recently concluded fiscal year and stands at 3.01 percent.
The Earnings per Share (EPS) of the bank has shrunk to Rs. 18.11 in Q4 of the financial year 079-80, while LBBL has a Net worth per Share of Rs. 182.17, which too is a slight deduction.
The distributable profit per share of LBBL stands at Rs. 11.61 in the fourth quarter of the financial year 2079-80; which was 14.02 in the corresponding quarter of the FY 078-79.
LBBL maintains a paid-up capital of Rs. 3.38 Arba, Rs. 39.27 crores in retained earnings and Rs. 2.38 Arba in the form of Reserves.
LBBL has Rs. 32.64 crores in the form of distributable profits to its shareholders.
Major Financial Highlights:
| Particulars (In Rs '000) | Lumbini Bikas Bank | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 3,382,821.29 | 3,284,292.51 | 3.00% |
| Share Premium | |||
| Retained Earnings | 392,762.46 | 460,394.81 | -14.69% |
| Reserves | 2,386,767.39 | 1,985,338.42 | 20.22% |
| Deposits | 49,132,059.67 | 42,873,977.59 | 14.60% |
| Loans & Advances | 41,562,524.89 | 38,068,026.47 | 9.18% |
| Net Interest Income | 1,874,208.68 | 1,532,363.16 | 22.31% |
| Personnel Expenses | 462,506.06 | 458,217.99 | 0.94% |
| Impairment charge/(reversal) for loans and other losses | 403,142.19 | 34,063.23 | 1083.51% |
| Operating Profit | 869,369.84 | 941,905.67 | -7.70% |
| Net Profit | 612,482.80 | 637,193.27 | -3.88% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 326,482.75 | 423,107.48 | -22.84% |
| Distributable Profit per Share | 11.61 | 14.02 | -17.19% |
| Capital Adequacy (%) | 13.29 | 11.77 | 12.91% |
| Non Performing Loan (NPL) (%) | 3.01 | 1.68 | 79.17% |
| Cost of Fund (%) | 9.87 | 9.28 | 6.36% |
| EPS (In Rs.) | 18.11 | 19.40 | -6.68% |
| Net Worth per Share (In Rs.) | 182.17 | 174.47 | 4.41% |
| Qtr end PE Ratio (times) | 22.81 | ||
| Qtr End Market Price | 413 | - | - |
