High impairment charge of Rs 53.76 crore results decline in net profit of Bank of Kathmandu by 22.21% in Q4; EPS stands at Rs 17.26

Wed, Aug 12, 2020 9:20 AM on Company Analysis, Latest,

Bank of Kathmandu Limited (BOKL) has published its fourth-quarter report for the FY 2076/2077 with a decrease in Net Profit by meager 22.21%. The bank’s net profit has declined from Rs. 1.89 Arba in the fourth quarter of the FY 2075/2076 to Rs. 1.47 Arba in the fourth quarter of FY 2076/2077. The decline in net profit is mainly due to the high impairment charge (provision) for loans and other losses of Rs 53.76 crore.

The company’s operating profit has decreased by 22.94% to Rs. 2.11 Arba in the fourth quarter in FY 2076/2077 compared to the corresponding quarter of the previous year. The bank has Rs. 88.07 crore as a Distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means BOKL can distribute around 10% (approx.) dividends from the earnings of FY 2076/77 if other regulatory requirements are not required. However, as per NRB circular, the interest amount which cannot be recovered in Q4 of 2076/77 can be shown in this year's balance sheet if it is recovered till Q1 of FY 2077/78. So the distributable amount might be slightly changed.

The bank’s deposit from customers increased by 11.34% to Rs. 92.10 arba whereas loans and advances to customers increased by 7.72% to Rs. 75.91 arba till the fourth quarter. The net interest income of the bank has decreased by 5.21% to Rs. 3.58 Arba compared to the corresponding quarter of the previous year.

The bank’s paid-up capital stands at Rs. 8.54 Arba with Rs. 5.76 Arba as its reserves and surplus. The Non-performing loan (NPL) increased to 2.35% from 1.54% in the corresponding quarter.

EPS of the bank in the fourth quarter of FY 2076/2077 stood at Rs. 17.26. The Net worth per share stands at Rs. 167.44 and Qtr End PE ratio stands at 12.69 times.

Click here for Q4 report:

Major Highlights:

Particulars (In Rs '000)

Bank of Kathmandu Limited

Q4 2076/77

Q4 2075/76

Difference

Paid Up Capital

8,546,887

8,063,101

6.00%

Share Premium

0

0

 

Retained Earnings

955,201

1,374,922

-30.53%

Reserves

4,808,473

4,528,000

6.19%

Deposits from Customers

92,103,300

82,722,030

11.34%

Loans & Advances to Customers

75,915,257

70,476,864

7.72%

Net Interest Income

3,582,845

3,779,892

-5.21%

Fee and Commission Income

543,664

520,282

4.49%

Impairment Charge/(Reversal)

537,683

64,557

-

Personnel Expenses

1,114,245

1,159,360

-3.89%

Operating Profit

2,115,199

2,744,839

-22.94%

Profit/(Loss) for the Year

1,475,569

1,896,956

-22.21%

Total Comprehensive Income

1,253,519

2,278,304

-44.98%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments

880,786

-

-

Capital Adequacy Ratio (CAR)

14.09

14.30

-1.47%

NPL

2.35

1.54

52.60%

CCD (as per NRB Directives)

70.91

75.8

-6.45%

Cost of Fund (%)

6.71

7.26

-7.58%

Base Rate (%)

8.71

9.98

-12.73%

EPS (In Rs.)

17.26

23.53

-26.62%

Net Worth per Share (In Rs.)

167.44

173.21

-3.33%

Qtr End PE Ratio (times)

12.69

-

-

Qtr End Market Price*

219

-

-

Price to Book (PB Ratio)

1.31

-

-