NIC Asia Bank Limited Q3 Report: 52.31% Net Profit Drop Driven by Impairment Charge Surge and Net Interest Income Decline
Fri, Apr 19, 2024 8:43 AM on Financial Analysis, Company Analysis, Latest,
NIC Asia Bank Limited (NICA) has unveiled its third-quarter fiscal report for 2080/81, revealing a substantial 52.31% decline in net profit, which stood at Rs 1.91 Arba.
Despite maintaining a solid financial base with a total paid-up capital of Rs. 14.91 Arba and reserves amounting to Rs. 17.45 Arba, the bank faces a notable challenge with negative retained earnings standing at Rs 1.72 Arba.
During this period, the bank's total deposits reached a commendable Rs 3.27 Kharba, with loans and advances to customers totaling Rs 2.77 Kharba. However, there was a notable downturn in Net Interest Income, falling by 9.95% to reach Rs. 8.18 Arba. Expenditures saw a significant increase, including personnel expenses of Rs. 2.81 Arba and a staggering 813.12% spike in impairment charges, reaching Rs. 2.14 Arba.
In terms of financial metrics for the third quarter, the bank reported an annualized EPS of Rs 17.12, with net worth per share standing at Rs 205.47. However, concerns arose as Non-Performing Loans (NPL) spiked to 3.08%. Additionally, the bank disclosed a negative distributable profit of Rs. 1.72 Arba.
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | NIC Asia Bank Limited | ||
|---|---|---|---|
| Q3 2080/81 | Q3 2079/80 | Difference | |
| Paid Up Capital | 14,917,566.92 | 11,564,005.37* | 29.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | -1,725,642.82 | 3,534,225.91* | - |
| Reserves | 17,459,561.19 | 14,292,724.58* | 22.16% |
| Deposits | 327,167,643.65 | 311,367,922.42* | 5.07% |
| Loans & Advances | 277,181,146.88 | 261,772,031.45* | 5.89% |
| Net Interest Income | 8,188,170.54 | 9,092,417.51 | -9.95% |
| Personnel Expenses | 2,819,434.95 | 3,376,480.83 | -16.50% |
| Impairment Charges | 2,148,530.84 | 235,295.80 | 813.12% |
| Operating Profit | 3,625,277.82 | 5,782,110.35 | -37.30% |
| Net Profit | 1,914,891.67 | 4,014,924.55 | -52.31% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -1,725,642.82 | 3,023,163.04 | - |
| Capital Adequacy (%) | 11.29 | 12.64 | -10.68% |
| NPL (%) | 3.08 | 0.85 | 262.35% |
| Cost of Fund (%) | 6.79 | 7.97 | -14.81% |
| EPS (In Rs.) | 17.12 | 46.29 | -63.03% |
| Net Worth per Share (In Rs.) | 205.47 | 254.16 | -19.16% |
| Qtr end PE Ratio (times) | 23.08 | ||
| Qtr End Market Price | 395 | - | |
