Bank of Kathmandu Q3 financials seriously impacted by COVID-19 outbreak; distributable profit stands at negative Rs 9.08 crore

Wed, May 6, 2020 7:35 AM on Financial Analysis, Stock Market, Latest,

Bank of Kathmandu Limited (BOKL) has published its third quarter report for the FY 2076/77 with decline in net profit by 27.49%. The bank’s profit has decreased from Rs 1.20 arba in the third quarter of the fiscal year 2075/76 to Rs 87.34 crore in the third quarter of the fiscal year 2076/77. The decline in profit is mainly due to impairment chargs of Rs 80.65 crore. BOKL Q3 financials seems to be badly impacted by COVID-19 outbreak and its impact of Nepalese economy.

In the same quarter, the bank has negative Rs 9.08 crore as distributable profit after PL Appropriation and Regulatory Adjustments whereas distributable profit stands at Rs 73.38 crore in the corresponding quarter. If financials recovery didn’t happen in fourth quarter, then it will be not possible for BOKL to distribute dividend this year due to negative distributable profit.

The bank’s deposit from customers has growth rate of 8.52% (compared to immediate previous year ending) to Rs 89.77 arba and loans and advances to customers have increased by 11.70% (compared to immediate previous year ending) to Rs 78.72 arba in the third quarter. The net interest income of the bank has increased by 5.52% to Rs 2.87 arba from Rs 2.73 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8.54 arba and Rs 5.12 arba as its reserve and surplus with negative Rs 8.59 crore in retained earnings account.

The Non-Performing Loan (NPL) has decreased to 1.53% from 2.21%. In the third quarter, the annualized EPS of the bank stands at Rs 13.63. The net worth per share stands at Rs 159.92 and qtr end PE ratio stands at 16 times.

Click here for Q3 report:

Major Highlights:

 * 2075/76 figure are of Immediate Previous Year Ending.

 

Particulars (In Rs '000)

Bank of Kathmandu

Q3 2076/77

Q3 2075/76

Difference

Share Capital*

8,546,887

8,063,101

6.00%

Share Premium*

0

0

 

Retained Earnings*

-85,920

1,374,922

-106.25%

Reserves*

5,207,365

4,528,000

15.00%

Deposits from Customers*

89,770,924

82,722,030

8.52%

Loans & Advances to customers*

78,724,983

70,476,864

11.70%

Net Interest Income

2,878,780

2,735,285

5.25%

Fee and Commission Income

428,277

381,624

12.22%

Impairment Charge/(Reversal)

806,551

249,509

-

Personnel Expenses

843,213

854,015

-1.26%

Operating Profit

1,235,348

1,710,614

-27.78%

Profit/(Loss) for the Year

873,493

1,204,683

-27.49%

Total Comprehensive Income

589,250

1,200,961

-50.94%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments

-90,883

733,800

-112.39%

Capital Adequacy Ratio (CAR)

13.82

13.73

0.66%

NPL

1.53

2.12

-27.83%

CCD (as per NRB Directives)

77.54

78.51

-1.24%

Cost of Fund (%)

7.28

7.37

-1.22%

Base Rate (%)

9.33

10.07

-7.35%

Annualized EPS (In Rs.)

13.63

19.92

-31.60%

Net Worth per Share (In Rs.)

159.92

173.21

-7.67%

Qtr End PE Ratio (times)

16.00

-

-

Qtr End Market Price

218

-

-