Banking giant Nabil Bank's earns Rs 3.56 arba in Q4 with 15.86% decline; has 30% dividend distribution capacity from FY 2076/77 earnings
Thu, Aug 13, 2020 6:15 AM on Company Analysis,
Nabil Bank Limited (NABIL) has published its fourth-quarter report for the FY 2076/2077 with a decline in Net Profit by 15.86%. The bank’s net profit has declined from Rs. 4.23 Arba in the fourth quarter of the FY 2075/2076 to Rs. 3.56 Arba in the fourth quarter of FY 2076/2077. The decline in net profit is mainly due to the high impairment charge (provision) for loans and other losses and increased personnel expenses.
The company’s operating profit has decreased by 15.48% to Rs. 5.09 Arba in the fourth quarter in FY 2076/2077 compared to the corresponding quarter of the previous year. The bank has Rs. 3.04 arba as a Distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means NABIL can distribute around 30% (approx.) dividends from the earnings of FY 2076/77 if other regulatory requirements are not required. However, as per NRB circular, the interest amount which cannot be recovered in Q4 of 2076/77 can be shown in this year's balance sheet if it is recovered till Q1 of FY 2077/78. So the distributable amount might be slightly changed.
The bank’s deposit from customers increased by 17.09% to Rs. 1.90 kharba whereas loans and advances to customers increased by 16.26% to Rs. 1.48 kharba till the fourth quarter. The net interest income (Core business income) of the bank has decreased by 1.94% to Rs. 7.02 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 10.09 Arba with Rs. 15.70 Arba as its reserves and surplus. The Non-performing loan (NPL) slightly increased to 0.97% from 0.74% in the corresponding quarter.
The EPS of the bank in the fourth quarter of FY 2076/2077 stood at Rs. 35.32. The Net worth per share stands at Rs. 255.52 and Qtr End PE ratio stands at 21.66 times.
Major Highlights:
* Published EPS, Networth and PE may differ. As per NFRS standard, the Weighted average number of shares is taken while calculating EPS, Networth, and PE but we have taken a number of shares as per Q4 end paid-up capital.
|
Particulars (In Rs '000) |
Nabil Bank Limited |
||
|---|---|---|---|
|
Q4 2076/77 |
Q4 2075/76 |
Difference |
|
|
Paid Up Capital |
10,097,497 |
9,011,845 |
12.05% |
|
Share Premium |
74 |
74 |
|
|
Retained Earnings |
3,042,237 |
3,735,334 |
-18.56% |
|
Reserves |
12,661,672 |
10,441,359 |
21.26% |
|
Deposits from Customers |
190,806,470 |
162,954,000 |
17.09% |
|
Loans & Advances to Customers |
148,231,388 |
127,500,243 |
16.26% |
|
Net Interest Income |
7,020,275 |
7,159,254 |
-1.94% |
|
Fee and Commission Income |
1,305,227 |
1,291,005 |
1.10% |
|
Impairment Charge/(Reversal) |
744,564 |
405,174 |
- |
|
Personnel Expenses |
2,169,786 |
1,949,610 |
11.29% |
|
Operating Profit |
5,093,632 |
6,026,651 |
-15.48% |
|
Profit/(Loss) for the Year |
3,566,673 |
4,238,854 |
-15.86% |
|
Total Comprehensive Income |
4,591,244 |
4,368,326 |
5.10% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
3,042,237 |
3,735,334 |
-18.56% |
|
Capital Adequacy Ratio (CAR) |
12.81 |
12.50 |
2.48% |
|
NPL |
0.97 |
0.74 |
31.08% |
|
CCD (as per NRB Directives) |
68.08 |
72.9 |
-6.61% |
|
Cost of Fund (%) |
5.49 |
6.13 |
-10.44% |
|
Base Rate (%) |
7.32 |
8.09 |
-9.52% |
|
EPS (In Rs.) |
35.32 |
47.04 |
-24.90% |
|
Net Worth per Share (In Rs.) |
255.52 |
257.31 |
-0.70% |
|
Qtr End PE Ratio (times) |
21.66 |
- |
- |
|
Qtr End Market Price* |
765 |
- |
- |
|
Price to Book (PB Ratio) |
2.99 |
- |
- |
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