Mega Bank’s reserve rises by 216.28% to Rs 1.28 arba; 65% right shares approved by SEBON; paid up capital to cross 10 arba post merger

- ShareSansar, August 11, 2017  on Dividend, Right & Bonus , Featured , Financial Analysis , Latest , Stock Market

Mega Bank Nepal Limited (MEGA) has witnessed the growth of 43.62 percent in net profit for the fourth quarter (Q4) in the last fiscal year 2073/2074.

As reported by the unaudited financial report, the commercial bank has tremendously increase its net profit from Rs 55.10 crore in Q4 of the previous fiscal year 72/73 to Rs 79.14 crore in Q4 of the last fiscal year 73/74.

Its net interest income has also surged by 53.10 percent to Rs 1.72 arba in Q4 from Rs 1.12 arba in the corresponding quarter.

MEGA has paid up capital of Rs 4.58 arba and reserve of Rs 1.28 arba with a boggling growth of 216.28 percent.

The commercial bank has collected deposits of Rs 38.93 arba in Q4, up from Rs 30.75 arba  in the corresponding quarter. Similarly, its extended loans and advances stood at Rs 34.59 arba in Q4 whereas in the same period in previous fiscal year it was Rs 27.35 arba.

Its non-performing loan (NPL) has increased to 1.36 percent in Q4 from 0.79 percent in the previous fiscal year, while CD ratio is down by 11.66 percent to 70.05 percent compare to previous fiscal year.

MEGA’s earning per share (EPS) has risen from Rs14.61 in the corresponding quarter to Rs 17.27 in Q4. Its net worth per share is at Rs127.67 and the P/E ration at 26.52.

SEBON approves to issue 65% Right Share of Mega Bank

In addition, Securities Board of Nepal (SEBON) has given final approval to issue 10:6.5 (65%) right shares of Mega Bank.

Mega Bank’s 6th AGM had approved to issue 65 percent right share to its shareholders. The bank will be issuing a total of 2,97,85,034.33 units right shares worth Rs 2.97 arba to its shareholders at the par value of Rs 100.

Mega Bank’s AGM had also approved 13.95 percent bonus share including 0.70 percent cash dividend to its shareholders.

The trading of the bank has been suspended in Nepal Stock Exchange since 19th January 2017 following its merger process with Tourism Development Bank Limited (TDBL). TDBL paid up capital would be Rs 201 crore after adjustment of  recently allotted 100 right share and 9.3% proposed bonus share of FY 72/73.

In case of Mega, post issuance of right shares, its paid up capital will reach more than Rs 7.55 arba. As per NRB’s directive it is mandatory to make for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74. Considering Mega merger with TDBL at 1 :1 swap ratio, the paid up capital of the bank would be Rs 9.55 arba, highest among any commercial bank in Nepal. Furthermore, bonus share from return of last FY 73/74 would be added too to make the paid up capital above 10 arba of the bank.

Major Highlights:

Indicators (Rs in “000”) FY 2073/74 Q4 FY 2072/73 Q4 Growth (%)
Paid Up Capital            4,582,313            3,772,169               21.48
Reserve and Surplus            1,281,473                405,175             216.28
Deposits          38,936,865          30,750,072               26.62
Loans and Advances          34,597,835          27,358,983               26.46
Net Interest Income            1,723,717            1,125,847               53.10
Provision                178,850                  99,033               80.60
Write Back                  35,996                136,589             (73.65)
Operating Profit            1,187,691                720,179               64.92
Net Profit                791,413                551,044               43.62
Capital Adequacy Ratio (%)                     14.87                     12.95               14.83
NPL (%)                       1.36                       0.79               72.15
Cost of Funds (%)                       6.00                       4.02               49.25
CD Ratio (as per NRB) (%)                     70.05                     79.48             (11.86)
Base rate                     11.00                       6.58               67.17
EPS (Annualized)                     17.27                     14.61               18.23
Networth Per Share                  127.97                  110.74               15.55
P/E Ratio                     26.52