Despite of huge provisions of Rs 94.96 crore NIC Asia Bank's net profit rises by 145.41%; has capacity to distribute 16% dividend from FY 2075/76 earnings

NIC Asia Bank Limited (NICA) has published its third quarter report for the FY 2075/76 with an outstanding rise in net profit by 145.41%.

The bank’s profit has increased from Rs 92.76 crore in the third quarter of the fiscal year 2074/75 to Rs 2.27 arba in the third quarter of the fiscal year 2075/76.

The bank’s deposit (from customers) rises by meager 10.42% to Rs 1.54 kharba whereas loans and advances (to customers) have also increased by 22.24% to Rs 1.41 kharba in the third quarter. The net interest income (core business income) of the bank has also increased by massive 100.5% to Rs 5.32 arba from Rs 2.65 arba of the corresponding quarter.

The banks has huge amount of Rs 94.96 crore as provision for possible losses (impairment charges).

The bank’s paid up capital stands at Rs 8.83 arba with Rs 5.45 arba as its reserve. The Non-Performing Loan (NPL) rises to 0.45%.

In the same quarter, the bank has Rs 1.05 arba 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 1.4 arba (approx.) as distributable profit. This means NIC Asia can distribute around 16% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory requirements are not required.

NICA’s dividend payout seems low despite having huge profit mainly due to the requirements to maintain reserves from net profit for debenture redemption fund.

In the third quarter, the annualized EPS of the bank stands at Rs 34.36. The net worth per share stands at Rs 161.74 and PE ratio stands at 13.64 times.

Click Here for Q3 Report:

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.