Despite of huge impairment charge of Rs 1.74 arba Global IME Bank able to increase net profit by Rs 11.81% in Q4
Fri, Aug 14, 2020 10:51 AM on Company Analysis, Latest,
Global IME Bank Limited (GBIME) has published its fourth-quarter report for the FY 2076/2077 with an increase in Net Profit by 11.81%. The bank's net profit has increased from Rs. 2.76 Arba in the fourth quarter of FY 2075/2076 to Rs. 3.08 Arba in the fourth quarter of FY 2076/2077.
As per the management report, even though the bank has increased its profit, it has been hit by the global pandemic which has increased its non-performing loan in the current quarter. Their expenses have been dramatically increased which the bank is concerned about and will be focusing on the collection of non-performing loans, cutting their expenses, and providing better services to their customers in the coming fiscal year.
The bank has Rs. 1.73 Arba (includes Rs 45.13 crore net profit of then Janata Bank Limited till the date of the merger) as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means GBIME can distribute around 9% (approx.) dividends from the earnings of FY 2076/2077 if other regulatory requirements are not required. However, as per the NRB circular, the interest amount which cannot be recovered in Q4, of FY 2076/2077 can be shown in this year’s balance sheet if it is recovered till Q1 of FY 2077/2078. So, the distributable amount might be slightly changed.
The bank’s deposit from customers increased by 76.80% to Rs. 2.12 Kharba whereas loans and advances to customers increased by 73.79% to Rs. 1.89 Kharba till the fourth quarter. The Net Interest Income (core business income) of the bank has increased by 56.27% to Rs. Rs. 8.19 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 18.97 Arba with Rs. 10.04 Arba in Reserve and surplus. The Non-performing loan (NPL) has increased to 1.80% because of a higher impairment charge in Q4, 2076/2077.
The earnings per share (EPS) of the Bank stood at Rs. 16.27 and Net worth per share stood at Rs. 152.92. The company traded at a P/E multiple of 14.69 times.
Major Highlights:
* Rs. 45.13 crore profit of then JBNL till the date of Merger (19th Mangsir 2076) is not included in the published profit figure and hence not included while calculating EPS.
|
Particulars ('000) |
Global IME Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
18,975,880.00 |
10,310,516.00 |
84.04% |
|
Share Premium |
5,393.00 |
- |
- |
|
Retained Earnings |
1,618,563.00 |
2,663,622.00 |
-39.23% |
|
Reserves |
8,418,117.00 |
3,358,032.00 |
150.69% |
|
Deposit from Customers |
212,315,385.00 |
120,088,440.00 |
76.80% |
|
Loans & Advances to Customers |
189,388,664.00 |
108,977,608.00 |
73.79% |
|
Net Interest Income |
8,192,075.00 |
5,242,346.00 |
56.27% |
|
Fee and Commission Income |
1,472,135.00 |
1,181,096.00 |
24.64% |
|
Impairment Charge/(Reversal) |
1,740,617.00 |
198,187.00 |
778.27% |
|
Personnel Expenses |
2,486,110.00 |
1,579,662.00 |
57.38% |
|
Operating Profit |
4,405,249.00 |
3,906,629.00 |
12.76% |
|
Profit/(Loss) for the Year |
3,088,042.00 |
2,761,954.00 |
11.81% |
|
Total Comprehensive Income |
3,149,675.00 |
2,753,492.00 |
14.39% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
1,732,882.00 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
12,41% |
12,31% |
- |
|
Non-Performing Loan (NPL) |
1.80% |
0.55% |
- |
|
CCD (as per NRB Directive) |
73.18% |
78.69% |
- |
|
Cost of Fund (%) |
6.21% |
7.18% |
- |
|
Base Rate (%) |
8.42% |
9.54% |
- |
|
Annualized EPS (Rs.) |
16.27 |
26.78 |
-39.25% |
|
Net worth per share (Rs.) |
152.92 |
158.40 |
-3.46% |
|
Qtr End PE Ratio (Rs.) |
14.69 |
- |
- |
|
Qtr End Market Price |
239.00 |
- |
- |
|
Price to Book (PB Ratio) |
1.56 |
- |
- |
