Global IME Bank Reports Highest Bottom Line Among Commercial Banks in Q2; Conversation With Sr. Deputy CEO About This Milestone
Fri, Jan 21, 2022 6:18 PM on Company Analysis, Latest,
Global IME Bank Limited (GBIME) reported growth in Net Profit by 15.04% in the second quarter of FY 2078-2079. The Net profit increased to Rs. 2.66 Arba which was Rs. 2.31 Arba in the corresponding quarter of the previous year.
With most of the Q2 financial reports of commercial banks published today, the highest Net Profit is reported by the company.
Mahesh Sharma Dhakal, the company's Senior Deputy Chief Executive Officer highlighted a number of reasons that were responsible for the impressive growth. Dhakal shared that the company had witnessed a higher loan growth in the first quarter, and it is only natural that the company will keep benefiting from the forwards.
Furthermore, the company had a special focus on loan recovery in the second quarter. As liquidity was tight, all banks and financial institutions were contained from forwarding higher loans. Deposit collection in the second quarter has also gone down in the sector. Nonetheless, Global IME Bank channeled its effort towards loan recovery, which eventually resulted in fewer loan provisioning. The non-performing loan, for example, has gone down to 1.13%.
Dhakal also claimed that the company benefitted from non-funded businesses like LC guarantees that converted to higher freebase income growth. In addition, the operating expenses of the bank were in check in the second quarter, and it only rose minimally in line with the growth in business.
Last but not least, Mahesh Sharma Dhakal credited the efficiency of the 3,200 staff members employed by the company. With the dedication and industriousness that started from the very top to the absolute bottom, the company was able to turn up impressive performance and positive figures.
At the same time, in order to avoid any negative connotation about reporting a higher profit during the pandemic, Dhakal was quick to admit that the higher paid-up capital, size, and business volume of the company only made it natural to report the figures that it did. Dhakal says it is imperative that all stakeholders see the performance as a result of utmost dedication and service to customers, and the nation as a whole. The Senior Deputy Chief Executive Officer promised that the company will keep improving and streamlining its services, which is but the only way towards sustained banking.
Financial Highlights:
|
Particulars |
Global IME Bank Limited |
||
|---|---|---|---|
|
Q2, 2078/2079 |
Q2, 2077/2078 |
Difference |
|
|
Share Capital |
23,795,753.00 |
21,632,503.00 |
10.00% |
|
Reserve & Surplus |
10,701,344.00 |
11,087,914.00 |
-3.49% |
|
Loans and Advances |
256,425,466.00 |
228,651,427.00 |
12.15% |
|
Deposit from Customers |
271,901,611.00 |
268,433,792.00 |
1.29% |
|
Net Interest Income |
4,795,237.00 |
4,771,854.00 |
0.49% |
|
Impairment charge/(Reversal) for loans |
104,099.00 |
297,826.00 |
- |
|
Operating Profit |
3,676,914.00 |
3,237,666.00 |
13.57% |
|
Net Profit |
2,663,384.00 |
2,315,118.00 |
15.04% |
|
Capital Adequacy Ratio (CAR) |
12.70% |
12.65% |
- |
|
Non-performing Loan (%) |
1.13% |
1.72% |
- |
|
Cost of Funds (%) |
6.16% |
5.12% |
- |
|
Base Rate (%) |
7.99% |
6.76% |
- |
|
CD Ratio (as per NRB Directives) |
90.73% |
73.64% |
- |
|
Annualized EPS (Rs.) |
22.39 |
21.40 |
- |
|
Net Worth per share (Rs.) |
144.97 |
151.26 |
- |
|
Price to Earnings (Times) |
14.56 |
- |
- |
|
Price to Book (Times) |
2.25 |
- |
- |
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