NCCB's profitability constrained by current business environment; Net Interest Income rose by 8.48%; EPS at Rs. 12.09
Fri, Aug 14, 2020 5:06 PM on Latest, Company Analysis,
Nepal Credit and Commerce Bank Limited (NCCB) has published its fourth-quarter report for the FY 2076/2077 with an increase in Net Profit by 10.75%. The bank's net profit has increased from Rs. 1.02 Arba in the fourth quarter of FY 2075/2076 to Rs. 1.13 Arba in the fourth quarter of FY 2076/2077.
However, the operating profit of the bank has decreased by 11.23% in the Q4 of FY 2076/2077. The bank has Rs. 69.99 crore as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means NCCB can distribute around 7% (approx.) dividends from the earnings of FY 2076/2077 if other regulatory requirements are not required.
The bank’s deposit from customers increased by 11.83% to Rs. 73.78 Arba whereas loans and advances to customers increased by 7% to Rs. 65.10 Arba till the fourth quarter. The Net Interest Income (core business income) of the bank has increased by 8.48% to Rs. 3.21 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 9.35 Arba with Rs. 3.82 Arba in Reserve and surplus. The Non-performing loan (NPL) remains fairly stable with the corresponding quarter at 2.79%.
The earnings per share (EPS) of the Bank stood at Rs. 12.09 and Net worth per share stood at Rs. 140.91. The company traded at a P/E multiple of 15.38 times.
Major Highlights:
|
Particulars ('000) |
Nepal Credit and Commerce Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
9,353,916.94 |
7,018,587.30 |
33.27% |
|
Share Premium |
- |
172,445.87 |
- |
|
Retained Earnings |
888,725.45 |
1,320,593.59 |
-32.70% |
|
Reserves |
2,937,840.75 |
3,496,427.96 |
-15.98% |
|
Deposit from Customers |
73,786,878.60 |
65,979,798.73 |
11.83% |
|
Loans & Advances to Customers |
65,107,489.37 |
60,850,932.17 |
7.00% |
|
Net Interest Income |
3,219,276.52 |
2,967,646.97 |
8.48% |
|
Fee and Commission Income |
590,930.61 |
598,306.98 |
-1.23% |
|
Impairment Charge/(Reversal) |
328,236.32 |
-127,135.61 |
- |
|
Personnel Expenses |
1,261,262.09 |
1,243,866.48 |
1.40% |
|
Operating Profit |
1,742,353.15 |
1,962,730.21 |
-11.23% |
|
Profit/(Loss) for the Year |
1,130,984.84 |
1,021,232.24 |
10.75% |
|
Total Comprehensive Income |
1,133,396.32 |
1,013,399.01 |
11.84% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
699,917.96 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
13.40% |
13.30% |
- |
|
Non-Performing Loan (NPL) |
2.79% |
2.76% |
- |
|
CCD (as per NRB Directive) |
74.88% |
73.84% |
- |
|
Cost of Fund (%) |
6.44% |
7.49% |
- |
|
Base Rate (%) |
9.03% |
10.23% |
- |
|
Annualized EPS (Rs.) |
12.09 |
14.55 |
-16.91% |
|
Net worth per share (Rs.) |
140.91 |
185.33 |
-23.97% |
|
Qtr End PE Ratio (Rs.) |
15.38 |
- |
- |
|
Qtr End Market Price |
186.00 |
- |
- |
|
Price to Book (PB Ratio) |
1.31 |
- |
- |
