Ballooning Provisions Lead to Decline In Net Profit Of Nabil Bank Limited In Q3
Tue, Apr 19, 2022 6:38 AM on Company Analysis, Latest,
Nabil Bank Limited (NABIL) has published its third-quarter report for the FY 2078/2079 with a decline in Net Profit by 8.91%. The bank's net profit has decreased from Rs. 3.67 Arba in the third quarter of FY 2077/2078 to Rs. 3.35 Arba in the third quarter of FY 2078/2079.
The decline in Net profit is due to the higher provisions in this quarter.
In the same quarter, the bank has Rs 2.16 Arba as distributable profit after PL Appropriation and Regulatory Adjustments.
The bank’s deposits from customers increased by 4.81% to Rs. 2.34 kharba (compared to the immediate previous year ending) whereas loans and advances to customers increased by 12.10% to Rs. 2.21 kharba (compared to the immediate previous year ending) till the third quarter. The bank's Net Interest Income (core business income) has increased by 29.30% to Rs. 6.59 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 18.49 Arba with Rs. 16.69 Arba in Reserve and surplus. The Non-performing loan (NPL) remained at 1.14%.
The annualized earnings per share (EPS) of the Bank stood at Rs. 24.16 and Net worth per share stood at Rs. 190.29. The company traded at a P/E multiple of 40.18 times.
The company is set to acquire Nepal Bangladesh Bank Limited (NBB).
Major Highlights:
|
Particulars |
Nabil Bank Limited |
||
|---|---|---|---|
|
Q3, 2078/2079 |
Q3, 2077/2078 |
Difference |
|
|
Share Capital |
18,496,187.00 |
13,844,451.00 |
33.60% |
|
Retained earnings |
2,167,521.00 |
4,162,929.00 |
-47.93% |
|
Reserves and Surplus |
14,531,795.00 |
15,850,725.00 |
-8.32% |
|
Loans and Advances |
221,989,356.00 |
198,021,418.00 |
12.10% |
|
Deposit from Customers |
234,229,948.00 |
223,474,470.00 |
4.81% |
|
Net Interest Income |
6,590,258.00 |
5,096,962.00 |
29.30% |
|
Impairment charge/(Reversal) for loans |
610,512.00 |
-196,418.00 |
- |
|
Operating Profit |
4,782,499.00 |
5,240,809.00 |
-8.75% |
|
Net Profit |
3,352,043.00 |
3,679,870.00 |
-8.91% |
|
Capital Adequacy Ratio (CAR) |
13.78% |
12.28% |
- |
|
Non-performing Loan (%) |
1.14% |
0.48% |
- |
|
Cost of Funds (%) |
6.84% |
4.68% |
- |
|
Base Rate (%) |
8.22% |
6.18% |
- |
|
CD Ratio (as per NRB Directives) |
91.47% |
80.80% |
- |
|
Annualized EPS (Rs.) |
24.16 |
35.44 |
- |
|
Net Worth per share (Rs.) |
190.29 |
244.56 |
- |
|
Price to Earnings (Times) |
40.18 |
- |
- |
|
Price to Book (Times) |
5.10 |
- |
- |
