Click here to read part I of the series.
Financial analysis of quarterly reports OF BOKL:
As of first quarter of FY 2074/75, the paid up capital of BOKL stands at NRs 5.62 arab. The bank has been able to maintain a reserve of NRs 3.53 arab in its first quarter. Similarly, NRs 69.15 arab of deposits have been collected by the bank whereas the loan and advances amounts to NRs 62.32 arab. Finally, BOKL has been able to hit a profit of NRs 22.4 crore in its first quarter. Finally, the EPS of bank stands at NRs 16 whereas net worth per share is NRs162.85 in Q1.
52 weeks high-low index of BOKL:
The market index of BOKL shows the maximum traded price of NRs 682 whereas the lowest traded price as NRs 400. Similarly, the local bourse of BOKL is in a downward trend this year. As on January 1
st, 2017, the stocks of BOKL were being traded at NRs 625. The AGM book closure of 72/73 FY happened on 26
th Feb, 2017, the company had endorsed 23% bonus share from its 22
nd AGM. After the price adjustment, the scrip traded as high as Rs 547 per unit on 11
th April, 2017 while as of November 29
th, 2017, it is being traded at NRs 416.
Projected financial analysis of BOKL:
Paid up capital:
The bank has estimated a consistent paid up capital throughout the upcoming three years. The paid up capital for all the three fiscal years stands at 8 arab. The bank aims to meet the paid up capital requirement at the end of this year i.e. FY 2074/75. BOKL’s current paid up capital remains at Rs 5.62 arba. After the auction, its paid up capital will reach Rs 6.24 arba. To meet NRB’s minimum paid-up capital requirement of Rs 8 arba, the bank will have to increase its capital by further Rs 1.76 arba (around 28%). Therefore, it can be estimated that BOKL will likely issue around 28-29% bonus share to increase its capital to Rs 8 arba.
Reserves and surplus:
The reserve and surplus of the bank is expected to increase in the upcoming years. The increase in reserves and surplus can be associated with the increase in retained earnings. The increase in retained earnings can be attributed to increase in income of the bank. The reserve and surplus is increased by 19.02% from FY 2074/75 to FY 2075/76 whereas by 17.33% from FY 2075/76 to FY 2076/77.
Net interest income:
The net interest income of BOKL for the upcoming three years is estimated to increase. From the FY 2074/75 to FY 2075/76, the net interest income is anticipated to rise by 16.33% whereas by 14.70% in the FY 2076/77. This increase in expected due to the margin of interest income greater than expenses.
Net profit after tax:
The profit after tax of the company is likely to be increased by 14.13% and 14.53% from FY 2074/75 to FY 2075/76 and from FY 2075/76 to FY 2076/77 RESPECTIVELY.
Net worth per share:
The net worth per share of BOKL is projected to go up from 138.69 to 144.85 from FY 2074/75 to FY 2075/76. Similarly, in FY 2075/76, the net worth per share is likely to be at Rs 152.63.
COF, ROA and CAR:
The bank has further predicted to maintain constant rate of COF, ROA and CAR. For the FY 2075/76 and FY 2076/77, the bank estimates 7% of COF, 2% of ROA and 13% of CAR.
Please, check website tomorrow for part III of the series
