Growth on major variables remains stagnant of Nepal Bank despite strong second quarterly reports; earns Rs 1.66 arba
Sun, Feb 3, 2019 8:30 AM on Financial Analysis, Stock Market, Latest,
Nepal Bank Limited has posted a meager rise of 1.41% in the net profits of Q2 for the FY 75/76. The bank’s profit has increased from Rs 1.63 arba in the second quarter of the fiscal year 2074/75 to Rs 1.66 arba in the second quarter of the fiscal year 2075/76.
A massive growth of 289.30% can be seen in the Reserve and Surplus of the bank compared to the same quarter of the previous year. This growth on reserve and surplus was seen mainly due to new accounting format NFRS where valuation of securities are done on market price and addition of premium amount after the issuance of FPO in last fiscal year.
Bank’s deposits have increased by 14.99% to Rs 1.05 kharba while loans and advances have increased by 9.01% to Rs 91.89 arba.
In the second quarter of the FY 2075/76, the bank had Rs 1.57 arba as Free Profit after Regulatory Adjustments which can be utilized in distributing dividends to its shareholders after maintaining the mandatory reserve as per NRB directives
A growth of 84.49% can be seen in the Net Worth per Share; which was at Rs 162.76 previous year is now standing at Rs 300.28 per share.
The Non-Performing Loans of the bank fell from 3.23% to 2.74%.
The EPS of the bank is Rs 33.87 which is 16.87% less as compared to previous year’s EPS. The price of Nepal Bank is currently trading at PE of 8.77 times.
Major Highlights:
|
Particulars (In Rs '000) |
Nepal Bank Limited |
||
|---|---|---|---|
|
Q2 2075/76 |
Q2 2074/75 |
Difference |
|
|
Paid Up Capital |
9,811,148 |
8,042,662 |
21.99% |
|
Reserve & Surplus |
19,650,014 |
5,047,550 |
289.30% |
|
Deposits |
105,678,286 |
91,898,690 |
14.99% |
|
Borrowings |
- |
30,772 |
- |
|
Loans & Advances |
85,798,472 |
78,710,279 |
9.01% |
|
Net Interest Income |
3,167,249 |
2,940,329 |
7.72% |
|
Impairment Charge/(Reversal) |
181,662 |
-6,789 |
- |
|
Operating Profit |
2,312,491 |
1,832,447 |
26.20% |
|
Profit/(Loss) for the Year |
1,661,498 |
1,638,459 |
1.41% |
|
Total Comprehensive Income |
1,590,708 |
1,638,459 |
-2.91% |
|
Add/ Less: Regulatory adjustment as per NRB |
-84,624 |
- |
- |
|
Free Profit/ (Loss) after Regulatory Adjustments |
1,576,875 |
1,638,459 |
-3.76% |
|
Capital Adequacy Ratio (CAR) |
15.98 |
16.41 |
-2.62% |
|
NPL |
2.74 |
3.23 |
-15.17% |
|
Annualized EPS (In Rs.) |
33.87 |
40.74 |
-16.87% |
|
Net Worth per Share (In Rs.) |
300.28 |
162.76 |
84.49% |
|
PE Ratio |
8.77 |
- |
- |
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