Shangrila Development Bank Publicizes Q4 Report with Increased Impairment Allocation Leading to Decreased Profits
Sat, Aug 5, 2023 11:51 AM on Latest, Financial Analysis,
Shangrila Development Bank Limited (SADBL) has published its fourth-quarter report for the recently concluded financial year 2079-80 with a 34.80 percent decline in its Net profits. As of FY 2079-80’s end, the company has made only Rs. 34.37 crores as opposed to Rs. 52.71 crores in the corresponding quarter of the FY 2078-79.
Despite a 6.68 percent comparative increase in its Net Interest Income, the company had to bear 31.85 percent losses in Operating profit. As of FY 2079-80’s end, the development bank has made Rs. 1.80 Arba and Rs. 50.51 crores in core business revenue and Operating profit, respectively.
The company has Rs. 24.89 crores available for distribution amongst its shareholders as of Ashad 31, 2080.
The Impairment allocation of the company has climbed significantly totaling Rs. 43.56 crores negatively affecting the profitability of the company.
Despite an Earnings per Share (EPS) ratio of Rs. 10.52 the distributable profit per share of the company is only Rs. 7.63 as of Ashad’s end.
The Net Worth per Share of the financial institution stands at Rs. 139.42 after a marginal improvement.
The company maintains Rs. 3.26 Arba in paid-up capital and has Rs. 1.03 in reserve and Rs. 24.89 crores in retained earnings.
Major Financial Highlights:
| Particulars (In Rs '000) | Shangri-la Development Bank | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 3,267,591.72 | 3,010,669.66 | 8.53% |
| Share Premium | - | - | - |
| Retained Earnings | 248,954.22 | 270,444.27 | -7.95% |
| Reserves | 1,039,177.34 | 907,690.70 | 14.49% |
| Deposits | 50,567,721.87 | 48,775,395.15 | 3.67% |
| Loans & Advances | 40,107,203.57 | 40,570,944.51 | -1.14% |
| Net Interest Income | 1,804,160.12 | 1,691,242.48 | 6.68% |
| Personnel Expenses | 583,119.31 | 588,651.01 | -0.94% |
| Impairment charge/(reversal) for loans and other losses | 435,685.30 | 159,953.00 | 172.38% |
| Operating Profit | 505,172.17 | 741,245.79 | -31.85% |
| Net Profit | 343,721.98 | 527,173.66 | -34.80% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 248,954.22 | 270,444.27 | -7.95% |
| Distributable Profit per Share | 7.62 | 8.98 | -15.14% |
| Capital Adequacy (%) | 12.40 | 11.59 | 6.99% |
| Non Performing Loan (NPL) (%) | 3.06 | 1.39 | 120.14% |
| Cost of Fund (%) | 9.71 | 9.12 | 6.47% |
| EPS (In Rs.) | 10.52 | 17.51 | -39.93% |
| Net Worth per Share (In Rs.) | 139.42 | 139.13 | 0.21% |
| Base Rate (%) | 12.15 | 11.26 | 7.90% |
| Qtr end PE Ratio (times) | 30.61 | - | - |
| Qtr End Market Price | 322 | - | - |
