Rise in Interest Expenses and Impairment Charges Affects Profitability of NMB Laghubitta for Q1; Net Profit Decreases by Huge Margin of 124.68%
Mon, Nov 14, 2022 3:47 PM on Latest, Financial Analysis, Stock Market,
NMB Laghubitta Bittiya Sanstha Limited (NMBMF) published its first-quarter report for FY 2079/2080 with a decline in Net Profit by a huge margin of 124.68%. As per the report published by the company, the net profit declined to Rs. 80.10 Lakhs as compared to Rs. 3.24 crores in the corresponding quarter of the previous year.
The borrowings of the company increased by 4.92% (compared to the immediate previous year ending) to Rs. 3.05 Arba which was Rs. 2.90 Arba the previous year. The company’s loans and advances have also increased by 5.05% (compared to the immediate previous year ending) to 5.64 Arba.
The net interest income (core revenue) has also declined by 22.50% at Rs. 8.64 crores. The interest expenses has increased by 61.08% to stand at Rs. 12.36 Crores and the provision for possible losses has also increased by 53.36%, both of which has affected the net profit of the company for the period.
The paid-up capital of the company increased to Rs. 65.58 crores in this quarter and its reserve and surplus stood at Rs. 36.22 crores.
The company’s earnings per share stood at Rs. 1.22 whereas the net worth per share stood at Rs. 155.24.
Major Financial Highlights
| Particulars (In Rs '000) | NMB Laghubitta | ||
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 655,863.00 | 539,805.00 | 21.50% |
| Reserve & Surplus | 362,273.00 | 397,562.00 | -8.88% |
| Borrowings | 3,052,874.00 | 2,909,820.00 | 4.92% |
| Deposits | 1,858,921.00 | 1,785,747.00 | 4.10% |
| Loans & Advances | 5,649,622.00 | 5,378,076.00 | 5.05% |
| Interest Expenses | 123,689.00 | 76,787.00 | 61.08% |
| Net Interest Income | 86,416.00 | 111,509.00 | -22.50% |
| Staff Expenses | 69,432.00 | 54,384.00 | 27.67% |
| Provision for possible losses | 15,546.00 | 10,137.00 | 53.36% |
| Operating Profit | -8,117.00 | 51,368.00 | -115.80% |
| Write Back | - | ||
| Net Profit | -8,010.00 | 32,460.00 | -124.68% |
| Capital Adequacy (%) | 17.47 | 16.69 | 4.67% |
| NPL (%) | 5.68 | 3.37 | - |
| Cost of Fund (%) | 10.11 | 7.16 | 41.20% |
| EPS (In Rs.) | 1.22 | 6.01 | |
| Net Worth per Share (In Rs.) | 155.24 | 173.65 | -10.60% |
