Bank of Kathmandu Lumbini Limited (BOKL), that recently passed the agenda to change its name back to Bank of Kathmandu Limited, has published its third quarterly report without the mention of “Lumbini” in its name.
As per the unaudited quarterly report published by the commercial bank today, its net profit has increased by a massive 83.40% to Rs 88.67 crore at the end of third quarter this year.
Similar improvements can be seen in its deposit and loans growth that have grown by a massive 73.57% and 80% respectively. As of the end of Q3 this year, its deposit base stands at a whopping Rs 70.67 arba with loans of Rs 62.74 arba. Its CCD ratio stands at 77.67%. With this, it has been able to increase its net interest income by almost 80% to a massive Rs 1.93 arba.
However, its operating expenses have also increased with similar proportion, due to which not all of its net interest income could convert into shareholders’ profit. Going forward, BOKL’s ability to minimize its expenses will have a significant increase in its net profit.
As of the end of Q3, BOKL’s paid up capital stands at Rs 5.62 arba, reserve at Rs 3.03 arba and net worth per share of Rs 153.94. Its annualized EPS has slightly decreased to Rs 21 with P/E ratio at 25 times.
BOKL had distributed 23% bonus share to its shareholders from the profits it earned in FY 2072/73. It is issuing 62.08 lakh units further promoter shares. After the issuance of 62.08 lakh units FPO shares for promoters, its paid up capital will reach Rs 6.24 arba with 51% promoter ownership and 49% general public ownership. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, BOKL will need to issue a further capital hike of around 28%. Existing promoters of BOKL and general public those who meet NRB’s eligiblity criteria for promoters are eligible to apply for the FPO.
Major Highlights:
| Indicators (Rs in "000") |
FY 2073/74 Q3 |
FY 2072/73 Q3 |
Difference (%) |
| Paid Up Capital |
5,629,576 |
2,671,468 |
110.73% |
| Reserve and Surplus |
3,036,762 |
1,676,766 |
81.11% |
| Deposits |
70,675,574 |
40,719,857 |
73.57% |
| Loans and Advances |
62,740,705 |
34,855,218 |
80.00% |
| Net Interest Income |
1,937,398 |
1,078,655 |
79.61% |
| Provision |
216,884 |
95,844 |
126.29% |
| Write Back |
107,048 |
5,592 |
1814.31% |
| Operating Profit |
1,249,823 |
742,665 |
68.29% |
| Net Profit |
886,713 |
483,513 |
83.39% |
| Capital Adequacy Ratio |
13.33% |
13.40% |
- |
| NPL |
1.76% |
3.76% |
-53.19% |
| Cost of Fund |
4.68% |
4.04% |
|
| CD Ratio (as per NRB) |
77.67% |
77.65% |
- |
| EPS (Annualized) |
21.00 |
24.13 |
-12.97% |
| PE Ratio |
25.19 |
|
|
| Networth Per Share |
153.94 |
|
|
