Bank of Kathmandu registers a profit of Rs 1.33 arba: EPS has decreased by 11.47%

Wed, Aug 15, 2018 9:47 AM on Financial Analysis, Latest, Stock Market,

Bank of Kathmandu has published a Q4 report of the fiscal year 2074/2075. As per the Nepal Financial Reporting Standards (NRFS) paid-up capital has increased from Rs 5.62 arba to Rs 7.07 arba this quarter comparing to the corresponding quarter of last fiscal year. The paid-up capital is still short by 13% to meet the minimum requirement of paid-up set by the NRB for commercial banks.  

The operating profit and Net Profit stands at Rs 2.17 arba and Rs 1.33 arba and growth in all other financials are not very attractive. However the growth in free profit is 18.01%, though the operating profit and Net profit has the minimal growth.

Particulars (in 000)

Q4 of 2074/2075

Q4 of 2073/2074

Difference

Paid-Up capital

7072896

5629576

25.64%

Reserve &Surplus

6352965

4918130

29.17%

Loan & Advances

68865152

62119176

10.86%

Deposit

77304892

72922285

6.01%

Net Interest Income

3110436

2676638

16.21%

Operating Profit

2174467

1902584

14.29%

Net Profit

1333795

1315164

1.42%

Free Profit after Regulatory adjustment

1548668

1312350

18.01%

Key Financial ratios

NPL to total loan 1.32% 1.29% 2.33%
Diluted Annualized EPS 21.91 24.75 -11.47%
Net Worth Per Share 189.82 187.36 1.31%
ROA 1.40% 1.53% -8.50%

Decrement in EPS and ROA is comparatively large that shows company's poor profit generating ability.

The LTP of the Bank of Kathmandu’s stock stands at Rs 262 and the latest P/E ratio is 11.95 times.