NIC Asia Bank Limited Q2 Report: 92.02% Net Profit Drop Driven by Impairment Charge Surge, Deposits and Loans Decline
Mon, Jan 20, 2025 8:21 AM on Financial Analysis, Highlight News,
NIC Asia Bank Limited (NICA) has unveiled its second-quarter fiscal report for 2081/82, revealing a serious decline in net profit by 92.02%, which stood at just Rs 15.17 Crore.
Despite maintaining a solid financial base with a total paid-up capital of Rs. 14.91 Arba and reserves amounting to Rs. 17.41 Arba, the bank faces a notable challenge with negative retained earnings standing at Rs 2.65 Arba.
During this period, the bank's total deposits and total loans declined by 12.92% to Rs 3.08 Kharba and 9.63% to Rs 2.45 Kharba respectively. However, there was a notable downturn in Net Interest Income, falling by 6.4% to reach Rs. 5.18 Arba. The Bank's personnel expenses stand at Rs. 1.95 Arba and a staggering 391.56% spike in impairment charges, reaching Rs. 2.35 Arba.
In terms of financial metrics for the second quarter, the bank reported an annualized EPS of Rs 2.03, with net worth per share standing at Rs 198.92. However, concerns arose as Non-Performing Loans (NPL) spiked to 1.47%.
Additionally, the bank disclosed a negative distributable profit of Rs. 2.65 Arba.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000") | NIC Asia Bank Limited | ||
|---|---|---|---|
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Share Capital | 1,49,17,567 | 1,49,17,567* | 0.00% |
| Share Premium | 0 | 0 | 0.00% |
| Retained Earnings | -26,55,773 | 26,66,972* | -199.58% |
| Reserves | 1,74,12,964 | 1,72,68,914* | 0.83% |
| Deposits from Customers | 30,83,47,347 | 35,40,96,865* | -12.92% |
| Loans & Advances to customers | 24,51,39,707 | 27,12,53,725* | -9.63% |
| Net Interest Income | 51,86,964 | 55,41,417 | -6.40% |
| Impairment Charge/(Reversal) | 23,59,673 | 4,80,038 | 391.56% |
| Personnel Expenses | 19,53,558 | 20,00,013 | -2.32% |
| Operating Profit | 34,19,64,252 | 35,61,040 | 9502.93% |
| Profit/(Loss) for the Year | 1,51,730 | 19,03,808 | -92.03% |
| Total Comprehensive Income | 1,55,249 | 18,26,820 | -91.50% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -26,55,773 | ||
| Capital Adequacy Ratio (CAR) | 11.65 | 11.02 | 5.72% |
| Net NPL | 1.47 | 0.58 | 153.45% |
| CD (as per NRB Directives) | 83.19 | 77.18 | 7.79% |
| Cost of Fund (%) | 5.45 | 7.53 | -27.62% |
| Interest Rate Spread (%) | 4 | 3.99 | 0.25% |
| Base Rate (%) | 7.52 | 9.68 | -22.31% |
| Annualized EPS (In Rs.) | 2.03 | 25.52 | -92.03% |
| Net Worth per Share (In Rs.) | 198.92 | 233.64 | -14.86% |
| Qtr End PE Ratio (times) | 185.62 | - | - |
| Qtr End Market Price | 377.6 | - | - |
