Everest Bank's profit decline by 18.14% to Rs 2.49 arba in Q4; has Rs 1.67 arba as distributable profit
Fri, Aug 14, 2020 6:51 AM on Company Analysis, Latest,
Everest Bank Limited (EBL) has published its fourth-quarter report for the FY 2076/2077 with a decline in Net Profit by 18.14%. The bank’s net profit has decreased from Rs. 3.05 Arba in the fourth quarter of the FY 2075/2076 to Rs. 2.49 Arba in the fourth quarter of FY 2076/2077.
As per the company, the COVID-19 pandemic has resulted in an unprecedented disruption of the economic activity and has put stress on the financial sector too. This has put pressure on the business growth, reserve, and profitability of the bank.
The bank has Rs. 1.67 arba as a Distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means EBL can distribute around 20% (approx.) dividends from the earnings of FY 2076/77 if other regulatory requirements are not required. However, as per NRB circular, the interest amount which cannot be recovered in Q4 of 2076/77 can be shown in this year's balance sheet if it is recovered till Q1 of FY 2077/78. So the distributable amount might be slightly changed.
The bank’s deposit from customers increased by 10.79% to Rs. 1.43 kharba whereas loans and advances to customers increased by 10.79% to Rs. 1.12 kharba till the fourth quarter. The net interest income (Core business income) of the bank has declined by 6.81% to Rs. 5.31 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 8.51 Arba with Rs. 10.11 Arba as its reserves and surplus. The Non-performing loan (NPL) slightly increased to 0.22% from 0.16% in the corresponding quarter.
The EPS of the bank in the fourth quarter of FY 2076/2077 stood at Rs. 29.38. The Net worth per share stands at Rs. 218.81 and Qtr End PE ratio stands at 22.98 times.
Major Highlights:
|
Particulars (In Rs '000) |
Everest Bank |
||
|---|---|---|---|
|
Q4 2076/77 |
Q4 2075/76 |
Difference |
|
|
Paid Up Capital |
8,510,207 |
8,106,863 |
4.98% |
|
Share Premium |
238,470 |
238,470 |
|
|
Retained Earnings |
1,727,527 |
2,324,151 |
-25.67% |
|
Reserves |
8,144,903 |
6,955,579 |
17.10% |
|
Deposits from Customers |
143,545,475 |
129,568,153 |
10.79% |
|
Loans & Advances to Customers |
112,195,372 |
104,644,201 |
7.22% |
|
Net Interest Income |
5,310,412 |
5,698,592 |
-6.81% |
|
Fee and Commission Income |
1,144,436 |
1,025,000 |
11.65% |
|
Impairment Charge/(Reversal) |
548,470 |
136,756 |
301.06% |
|
Personnel Expenses |
1,636,278 |
1,653,296 |
-1.03% |
|
Operating Profit |
3,572,426 |
4,352,120 |
-17.92% |
|
Profit/(Loss) for the Year |
2,499,994 |
3,054,122 |
-18.14% |
|
Total Comprehensive Income |
2,612,216 |
3,101,529 |
-15.78% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
1,673,167 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
13.32 |
13.75 |
-3.13% |
|
NPL |
0.22 |
0.16 |
37.50% |
|
CCD (as per NRB Directives) |
68.57 |
75.07 |
-8.66% |
|
Cost of Fund (%) |
6.11 |
6.21 |
-1.61% |
|
Base Rate (%) |
8.05 |
8.12 |
-0.86% |
|
EPS (In Rs.) |
29.38 |
37.67 |
-22.02% |
|
Net Worth per Share (In Rs.) |
218.81 |
217.41 |
0.64% |
|
Qtr End PE Ratio (times) |
22.98 |
- |
- |
|
Qtr End Market Price* |
675 |
- |
- |
|
Price to Book (PB Ratio) |
3.08 |
- |
- |
