Despite decline in net interest income of ICFC finance in Q3, what led to increase in its net profit?

Mon, Apr 26, 2021 5:39 AM on Latest,

ICFC Finance Limited (ICFC) reported a Net Profit of Rs. 17.79 crores. This is an increase of 65.74% compared to the corresponding quarter of the previous year.

It reported net interest income (core business revenue) of Rs. 22.93 crores in Q3. This is a decrease of 29.89% compared to the corresponding quarter of the previous year. However, the company reported Rs. 18.32 crores of other operating income which boosted the net profit in Q3.

The bank has collected deposits from customers of Rs. 14.33 Arba while it has mobilized loans and advances of Rs. 10.22 Arba till Q3 of FY 2077/2078.

ICFC Finance has a paid-up capital of Rs. 1.02 Arba and reported Rs. 44.66 crores reserve and surplus in this quarter.

The Earnings per Share (annualized) stood at Rs. 23.16 and net worth per share stands at Rs. 143.61. The Company traded at a P/E multiple of 14.50 times.

Click here for Q3 report:

Major Highlights:

* Figure is of Immediate Previous Year Ending

Particulars (In Rs '000") ICFC Finance
Q3 2077/78 Q3 2076/77 Difference
Share Capital* 1,024,266 926,502 10.55%
Share Premium* 0 0  
Retained Earnings* 103,034 140,119 -26.47%
Reserves* 343,648 267,587 28.42%
Deposits from Customers* 14,331,756 12,638,486 13.40%
Loans & Advances to customers* 10,227,951 8,966,484 14.07%
Net Interest Income 229,393 327,184 -29.89%
Other Operating Income 183,295 11,886 1442.13%
Impairment Charge/(Reversal) 29,931 56,699 0.00%
Personnel Expenses 122,147 103,134 18.44%
Operating Profit 253,847 152,996 65.92%
Profit/(Loss) for the Year 177,951 107,370 65.74%
Total Comprehensive Income  239,069 107,370 122.66%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 103,034    
Capital Adequacy Ratio (CAR) 13.38 12.44 7.56%
NPL 0.51 0.6 -15.00%
CCD (as per NRB Directives) 70.4 74.41 -5.39%
Cost of Fund (%) 6.6 9.27 -28.80%
Interest Rate Spread (%) 4.16 4.76 -12.61%
Base Rate (%) 8.42 10.72 -21.46%
Annualized EPS (In Rs.) 23.16 15.45 49.92%
Net Worth per Share (In Rs.) 143.61 144.00 -0.27%
Qtr End PE Ratio (times) 14.50 - -
Qtr End Market Price  336 - -