NIC Asia Bank Records Steady Growth Across Financial Indicators in Q4; NPL Below One Percent; How Much in Distributable Profits?
Sun, Aug 6, 2023 6:49 AM on Financial Analysis, Latest,
NIC Asia Bank Limited (NICA) has published its fourth-quarter report for the recently concluded financial year 2079-80 with a steady rise in its Net profits by 10.35 percent. As of FY 2079-80’s end, the commercial bank has made Rs. 4.65 Arba contrary to only Rs. 4.21 Arba it had earned in the corresponding quarter of FY 2078-79.
Both the Net Interest Income and Operating profit of the company have experienced a stable increase as well by 9.58 percent and 14.45 percent, respectively. The company has made Rs. 12.37 Arba and Rs. 6.82 Arba, respectively through its core business revenue and operating profit as of FY 2079-80.
The Impairment allocation of the company has declined as well by 54.44 percent up to the last quarter of the recently passed fiscal year totaling Rs. 39.41 crores, which has positively affected the profitability of the institution.
With an increase in Net profits, the Earnings per Share (EPS) ratio of the company has improved as well and stands at an impressive Rs.40.22 as of the last quarter of FY 2079-80, alongside a Net worth per Share of Rs. 256.41.
Despite an increase in the Non-performing Loan (NPL), it still remains below one percent at 0.80 percent, that has largely contributed to good financial standing of the company.
The commercial bank has Rs. 3.69 Arba available for distribution amongst its shareholders, while its distributable profit per share is Rs. 31.99 as of Ashad 31, 2080.
NICA maintains Rs. 11.56 Arba in its paid-up capital, while it has Rs. 18.08 Arba in the form of reserves and surplus (reserves + retained earnings), which puts the company in good financial standing.
Major Financial Highlights:
| Particulars (In Rs '000) | NIC Asia Bank Limited | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Share capital | 11,564,005.37 | 11,564,005.37 | 0.00% |
| Share Premium | - | - | - |
| Retained Earnings | 3,698,834.03 | 3,427,074.09 | 7.93% |
| Reserves | 14,388,438.39 | 9,852,067.33 | 46.04% |
| Deposits | 311,367,922.42 | 289,903,959.72 | 7.40% |
| Loans & Advances | 262,098,740.71 | 252,448,483.25 | 3.82% |
| Net Interest Income | 12,371,164.31 | 11,289,602.27 | 9.58% |
| Personnel Expenses | 4,995,499.81 | 4,500,764.35 | 10.99% |
| Impairment Charges | 394,197.09 | 865,260.40 | -54.44% |
| Operating Profit | 6,827,332.94 | 5,965,248.83 | 14.45% |
| Net Profit | 4,651,338.48 | 4,214,926.95 | 10.35% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 3,698,834.03 | 3,427,074.09 | 7.93% |
| Distributable Profit per Share | 31.99 | 29.64 | 7.93% |
| Capital Adequacy (%) | 13.39 | 13.38 | 0.07% |
| Non Performing Loan (NPL) (%) | 0.80 | 0.53 | 50.94% |
| Cost of Fund (%) | 7.67 | 7.39 | 3.79% |
| Base Rate (%) | 9.98 | 9.25 | 7.89% |
| EPS (In Rs.) | 40.22 | 36.45 | 10.35% |
| Net Worth per Share (In Rs.) | 256.41 | 214.83 | 19.35% |
| Qtr end PE Ratio (times) | 19.74 | - | - |
| Qtr End Market Price | 793.8 | - | - |
