Everest Bank's Q4 Net Profit Rises 4.75% to Rs. 5.06 Arba; Distributable Profit Reaches Rs. 3.80 Arba

Everest Bank Limited (EBL) has reported a net profit of Rs. 5.06 Arba for the fourth quarter of FY 2082/83, registering a 4.75% year-on-year increase from Rs. 4.83 Arba. The growth was primarily supported by a modest rise in net interest income, continued expansion in deposits and lending, and a lower cost of funds, although earnings were weighed down by higher impairment charges.

Customer deposits increased by 5.76% to Rs. 3.16 Kharba, while loans and advances expanded by 10.37% to Rs. 2.35 Kharba. Net interest income edged up 0.97% to Rs. 9.19 Arba, while retained earnings climbed 12.49% to Rs. 5.50 Arba and reserves rose 13.45% to Rs. 15.72 Arba.

Operating profit inched up 0.49% to Rs. 7.38 Arba. However, impairment charges moved to a loss of Rs. 27.28 crore, compared to a gain of Rs. 15.53 crore in the previous fiscal year, reflecting higher provisioning pressure. Meanwhile, the bank successfully reduced its cost of funds to 3.15% from 3.87%, supporting overall profitability.

Among key indicators, earnings per share (EPS) stood at Rs. 36.95 (down from Rs. 37.39), while net worth per share improved to Rs. 256.47. The non-performing loan (NPL) ratio increased to 0.49% from 0.38%, and the capital adequacy ratio declined to 12.23% from 13.17%.

At the end of the quarter, Everest Bank's shares closed at Rs. 695, giving the stock a price-to-earnings (P/E) ratio of 18.81 times.

Report:

Major Financial Highlights:
 
Particulars (In Rs '000) Everest Bank Limited
Q4 2082/83 Q4 2081/82 Difference
Paid Up Capital 13,721,376.00 12,944,694.00 6.00%
Share Premium 238,470.00 238,470.00  
Retained Earnings 5,504,212.00 4,893,096.00 12.49%
Reserves 15,727,825.00 13,863,240.00 13.45%
Deposit 316,018,577.00 298,818,400.00 5.76%
Loans & Advances  235,568,387.00 213,438,490.00 10.37%
Net Interest Income 9,190,459.00 9,102,324.00 0.97%
Personnel Expenses 2,847,322.00 2,640,457.00 7.83%
Impairment Charges 272,873.00 -155,327.00 -275.68%
Operating Profit 7,384,452.00 7,348,417.00 0.49%
Net Profit 5,069,936.00 4,839,903.00 4.75%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  5,257,815.00 4,893,096.00 -
Capital Adequacy (%) 12.23 13.17 -7.14%
NPL (%) 0.49 0.38  
Cost of Fund (%) 3.15 3.87 -18.60%
Annualized EPS  (In Rs.) 36.95 37.39 -1.18%
Net Worth per Share (In Rs.) 256.47 246.74 3.95%
Qtr end PE Ratio (times) 18.81 - -
Qtr End Market Price 695 - -