High provision leads to 23.73% decline in net profit of Citizens Bank International; Net profit stands at Rs 1.11 arba

Citizens Bank International Limited (CZBIL) has published its fourth-quarter report for the FY 2076/2077 with a decline in net profit by 23.73%. The bank’s net profit has declined from Rs. 1.46 Arba in the fourth quarter of the FY 2075/2076 to Rs. 1.11 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 67.72 crore in Q4.

The bank has Rs. 82.40 crore as a Distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means Citizens Bank can distribute around 9% (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 company’s operating profit has decreased by 30.74% to Rs. 1.45 Arba in the fourth quarter in FY 2076/2077 compared to the corresponding quarter of the previous year.

The bank’s deposit from customers increased by 25.54% to Rs. 88.51 arba whereas loans and advances to customers increased by 25.84% to Rs. 79.16 arba till the fourth quarter. The net interest income (Core business income) of the bank has increased by 7.19% to Rs. 2.88 Arba compared to the corresponding quarter of the previous year.

The bank’s paid-up capital stands at Rs. 9.09 Arba with Rs. 4.27 Arba as its reserves and surplus. The Non-performing loan (NPL) increased to 1.46% from 1.13% in the corresponding quarter.

The EPS of the bank in the fourth quarter of FY 2076/2077 stood at Rs. 12.28. The Net worth per share stands at Rs. 147.07 and Qtr End PE ratio stands at 15.31 times.

Click here for Q4 report:

Citizens Bank begins joint operation after the successful acquisition of Sahayogi Bikas Bank; to bring banking business from Province II post-merger

Major Highlights:

* Published EPS, Networth and PE may differ. As per NFRS standard, the Weighted average number of shares is taken while calculating EPS, Networth, and PE but we have taken a number of shares as per Q2 end paid-up capital.