Nepal Bank profit decline by 18.77% in Q4; has capacity to distribute 30% dividend from retained earnings and 33% dividend from share premium

Nepal Bank Limited (NBL) has published its fourth quarter report for the FY 2075/76 with 18.77% decline in net profit. The bank’s profit has decreased from Rs 3.21 arba in the fourth quarter of the fiscal year 2074/75 to Rs 2.61 arba in the fourth quarter of the fiscal year 2075/76.

In the same quarter, the bank has Rs 3.45 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. Since NBL retained earnings account is negative by Rs 43.71 crore on last FY, only Rs 3.01 arba (approx) will be available for distribution this year. This means NBL can distribute around 30% (approx.) dividend from the earnings of FY 2075/76 if other regulatory requirements are not required. Also NBL has Rs 3.26 arba as share premium this means NBL can distribute 33% (approx.) dividend from share premium.

The bank’s deposit to customers rises by 17.74% to Rs 1.17 kharba whereas loans and advances have also increased by 22.31% to Rs 92.41 arba in the Q4. The net interest income (core business income) of the bank has decreased by 3.27% to Rs 6.17 arba from Rs 6.38 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 9.81 arba with Rs 19.62 arba as its reserve and surplus. The Non-Performing Loan (NPL) has decline to 2.58%.

In the Q4, the EPS of the bank stands at Rs 26.62. The net worth per share stands at Rs 300.05 and qtr end PE ratio stands at 12.62 times.

Click here for Q4 report:

Major Highlights:

 * Figure are of Immediate Previous Year Ending (Audited)

 * Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q4 end paid up capital.