NIC Asia Bank's Q3: Net Profit Touches Rs 4 Arba; NPL Rises Slightly to 0.85%, Interest Receivable Stands at Rs 96 Cr. and Rs 1.66 Arba Provision for Non-Banking Assets
Thu, Apr 20, 2023 6:16 AM on Financial Analysis, Latest,
NIC Asia Bank Limited (NICA) has published its third-quarter report for the FY 2079/2080 with an increase in Net Profit by 11.38%. The bank's net profit has increased from Rs. 3.60 Arba in the third quarter of FY 2078/2079 to Rs. 4.01 Arba in the third quarter of FY 2079/2080.
The bank reported Rs. 3.03 Arba as a distributable profit (till 3rd quarter) after P/L appropriation and regulatory requirements. However, NIC Asia did not distribute dividends for the Fiscal Year 2078/79.
The bank’s deposit from customers increased by 8.59% to Rs. 3.14 kharba (compared to the immediate previous year ending) whereas loans and advances to customers increased by 5.45% to Rs. 2.66 kharba (compared to the immediate previous year ending) till the third quarter.
The Net Interest Income (core business income) of the bank has increased by 11.61% to Rs. 9.21 arba compared to the corresponding quarter of the previous year.
For the third quarter, the impairment charges (provision for possible losses) stand at Rs. 23.52 Crore. The non-performing loan (NPL) of the company has also increased to 0.85% from 0.51%.
Till the third quarter, the Interest Amount yet to be received was at Rs 96 Crore whereas the same amount stands at Rs 79.16 crore in the corresponding quarter.
NIC Asia Bank's Short loan loss provision on Non-Banking assets stands at Rs 1.66 Arba till the third quarter.
The bank’s paid-up capital stands at Rs. 11.56 Arba with Rs. 17.21 Arba in Reserves. The annualized earnings per share (EPS) of the Bank stood at Rs. 46.29 and Net worth per share stood at Rs. 248.88. The company traded at a P/E multiple of 15.60 times.
Major Highlights:
* Immediate Previous Year Ending
| Particulars (In Rs '000") | NIC Asia Bank | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Share Capital* | 11,564,005 | 11,564,005 | 0.00% |
| Share Premium* | 0 | 0 | 0.00% |
| Retained Earnings* | 3,023,163 | 3,427,074 | -11.79% |
| Reserves* | 14,193,165 | 9,852,067 | 44.06% |
| Deposits from Customers | 314,808,744 | 289,903,960 | 8.59% |
| Loans & Advances to customers | 266,210,650 | 252,448,483 | 5.45% |
| Net Interest Income | 9,217,034 | 8,258,443 | 11.61% |
| Impairment Charge/(Reversal) | 235,296 | 501,906 | -53.12% |
| Personnel Expenses | 3,378,481 | 2,937,531 | 15.01% |
| Operating Profit | 5,783,110 | 5,113,400 | 13.10% |
| Profit/(Loss) for the Year | 4,014,925 | 3,604,598 | 11.38% |
| Total Comprehensive Income | 3,937,385 | 3,406,834 | 15.57% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 3,023,163 | ||
| Capital Adequacy Ratio (CAR) | 12.64 | 13.11 | -3.59% |
| NPL | 0.85 | 0.51 | 66.67% |
| CD (as per NRB Directives) | 84.85 | 86.18 | -1.54% |
| Cost of Fund (%) | 7.97 | 7.24 | 10.08% |
| Interest Rate Spread (%) | 4.19 | 4.4 | -4.77% |
| Base Rate (%) | 10.48 | 9.39 | 11.61% |
| EPS (In Rs.) | 46.29 | 41.56 | 11.38% |
| Net Worth per Share (In Rs.) | 248.88 | 214.83 | 15.85% |
| Qtr End PE Ratio (times) | 15.60 | - | - |
| Qtr End Market Price | 722 | - | - |
