Century Bank's Q3 profit decline by 9.06% due to high provision for possible losses; EPS stands at meager Rs 9.87

Century Commercial Bank Limited (CCBL) has published its third quarter report for the FY 2075/76 with a decline in net profit by 9.06%.

The bank’s profit has decreased from Rs 67.15 crore in the third quarter of the fiscal year 2074/75 to Rs 61.06 crore in the third quarter of the fiscal year 2075/76. The banks profit declines mainly due to huge provision of possible losses (Impairment charges) of Rs 34.56 crore.

The bank’s deposit rises by meager 22.89% to Rs 57.82 arba whereas loans and advances have also increased by 19.72% to Rs 57.39 arba in the third quarter. The net interest income (core business income) of the bank has also increased by an outstanding 45.26% to Rs 1.97 arba from Rs 1.35 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8.25 arba with Rs 2.05 arba as its reserve. The Non-Performing Loan (NPL) rises to 1.53%.

In the same quarter, the bank has Rs 34.59 crore as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 46.12 crore (approx.) as distributable profit. This means CCBL can distribute around 5% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory requirements are not required.

In the third quarter, the annualized EPS of the bank stands at Rs 9.87. The net worth per share stands at Rs 124.36 and qtr end PE ratio stands at 17.23 times.

Major Highlights:

* Figure are of Immediate Previous Year Ending (Audited)

* Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q3 end paid up capital.