Falling Interest Spread and Higher Impairment Results 21.43% Fall in Profit of Chhimek Laghubitta in Q4; Distributable Profit Stands at Rs 76.43 Crore
Tue, Aug 2, 2022 5:08 AM on Financial Analysis, Latest,
Chhimek Laghubitta Bittiya Sastha Limited (CBBL) has published its fourth-quarter report for the FY 2078/2079 with a fall in Net Profit of 21.43%. CBBL's net profit has decreased from Rs. 1.31 arba in the fourth quarter of FY 2077/2078 to Rs. 1.03 arba in the fourth quarter of FY 2078/2079.
In the same quarter, the bank has Rs 76.43 crores as distributable profit after PL Appropriation and Regulatory Adjustments. This amount can be used for distributing dividends.
Microfinance borrowings decreased by 23.15% to Rs. 4.77 arba and deposits from customers increased by 20.41% to Rs 27.02 arba whereas loans and advances to MFIs and Cooperative increased by 32.14% to Rs. 32.88 arba till the fourth quarter. CBBL's Net Interest Income- NII (core business income) has increased by 11.69% to Rs. 2.49 arba compared to the corresponding quarter of the previous year.
The Laghubitta company's paid-up capital stands at Rs. 2.32 Arba with Rs. 3.58 Arba in Reserve and surplus. The Non-performing loan (NPL) slightly rises to 0.83% from 0.63%.
Similarly, the Cost of funds stands at 9.78% and the base rate is at 13.37%.
The earnings per share (EPS) stood at Rs. 44.42 and Net worth per share stood at Rs. 254.20. The company traded at a P/E multiple of 24.77 times.
Major Highlights:
| Particulars (In Rs '000") | Chhimek Laghubitta | ||
|---|---|---|---|
| Q4 2078/79 | Q4 2077/78 | Difference | |
| Share Capital | 2,324,100 | 1,830,000 | 27.00% |
| Share premium | 40,968 | 40,968 | 0.00% |
| Retained Earnings | 1,450,262 | 1,223,998 | 18.49% |
| Reserves | 2,092,497 | 1,976,146 | 5.89% |
| Borrowings | 4,777,930 | 6,217,521 | -23.15% |
| Deposits from Customers | 27,019,462 | 22,439,376 | 20.41% |
| Loans & Advances to MFIs and Cooperative | 32,887,728 | 24,888,658 | 32.14% |
| Net Interest Income | 2,490,524 | 2,229,787 | 11.69% |
| Impairment Charge/(Reversal) | 241,300 | -60,290 | -500.23% |
| Personnel Expenses | 957,893 | 828,447 | 15.63% |
| Operating Profit | 1,607,820 | 1,839,374 | -12.59% |
| Profit/(Loss) for the Year | 1,032,284 | 1,313,856 | -21.43% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 764,312 | ||
| Capital Adequacy Ratio (CAR) | 15.87 | 16.19 | -1.98% |
| NPL | 0.83 | 0.63 | 31.75% |
| CD and Borrowing Ratio | 103.43 | 86.85 | 19.09% |
| Cost of Fund (%) | 9.78 | 6.91 | 41.53% |
| Interest Rate Spread (%) | 5.14 | 6.11 | -15.88% |
| Base Rate (%) | 13.37 | 9.03 | 48.06% |
| EPS (In Rs.) | 44.42 | 71.80 | -38.13% |
| Net Worth per Share (In Rs.) | 254.20 | 277.11 | -8.27% |
| Qtr End PE Ratio (times) | 24.77 | - | - |
| Qtr End Market Price | 1100 | - | - |
