Fall in core business, high provision drive down NIC Asia’s profit by 16.73%, EPS stood Rs 26.05
Sun, Aug 16, 2015 12:00 AM on Others,
ShareSansar, August 16:
NIC Asia Bank Ltd. (NICA) has posted a fall in profit by 16.73 percent in the fourth quarter of the last fiscal year 2071/72 mainly due to the decrease in its core business and large amount of provision.
According to unaudited 4th quarterly financial statement of the bank published today, its net profit fall to Rs 69.24 crore in the quarter end, down from Rs 83.15 crore as compared to the corresponding quarter of the previous year 2070/71.
The bank’s profit fall is mainly due to the fall in its core business activities; the bank’s net interest income fall to Rs 1.57 arba from Rs 1.79 arba in last fiscal year. Also, the bank’s profit fall is also mainly due to the large amount of provision for possible loss. It has set aside Rs 33.79 crore for possible losses.
Non-performing loan (NPL) of the bank came down to 1.99 percent in Q4 from 2.33 percent in the corresponding previous fiscal quarter. The bank’s total deposit grew by 18.88 percent in the quarter end to reach at Rs 53.47 arba while the loan surged by 16 percent to stand at Rs 42.16 arba as compared to the previous year.
The increase in the deposit with sluggish credit demand amid high liquidity surplus in the banking system shows that the NIC Asia’s core business has decreased in the last fiscal year.
Net interest spread of the bank has also remained under the 5 percent rate as enforced by the central bank. The interest spread of the bank stood at 3.52 percent in the published quarter.
Its EPS is at Rs 26.05, P/E ratio 23.69 times and net worth per share is Rs 209.36.
NICA transaction in the NEPSE has increased a lot in last few days. The last traded price stood Rs 894 in NEPSE.
Click here for announcement.
|
NIC Asia Bank Limited |
Rs. In "000" |
||
|
4th Qtr. FY 2071/72 |
4th Qtr. FY 2070/71 |
Growth (%) |
|
|
Paid-up Capital (Rs.) |
2,658,285.00 |
2,658,285.00 |
0.00% |
|
Reserve (Rs.) |
2,907,222.00 |
2,214,747.00 |
31.27% |
|
Deposits (Rs.) |
53,477,184.00 |
44,984,218.00 |
18.88% |
|
Loans and Adv. (Rs.) |
42,166,475.00 |
36,325,070.00 |
16.08% |
|
Net Interest Income (Rs.) |
1,577,504.00 |
1,798,223.00 |
-12.27% |
|
Provision for Possible Losses (Rs.) |
3,379,085.00 |
259,054.00 |
|
|
Operating Profit (Rs.) |
893,102.00 |
761,803.00 |
17.24% |
|
Write Back (Rs.) |
183,073.00 |
134,893.00 |
|
|
Net Profit (Rs.) |
692,474.00 |
831,589.00 |
-16.73% |
|
Capital Adequacy Ratio (%) |
13.16% |
14.05% |
-6.33% |
|
Non Performing Loan (%) |
1.99% |
2.33% |
|
|
Cost of Funds (as per NRB) (%) |
5.12% |
5.99% |
-14.52% |
|
Net Interest Spread (%) |
3.52% |
4.06% |
-13.30% |
|
Credit to Deposit Ratio (As per NRB) |
73.10% |
75.43% |
-3.09% |
|
Earning Per Share (annualized) |
26.05 |
35.98 |
-27.60% |
|
P/E Ratio (Times) |
23.69 |
||
|
Net Worth per Share (Rs.) |
209.36 |
||
