Himalayan Bank earns Rs 2.54 arba in Q4; has Rs 1.30 arba as distributable profit

Fri, Aug 14, 2020 9:55 AM on Latest, Company Analysis,

Himalayan Bank Limited (HBL) has published its fourth-quarter report for the FY 2076/2077 with a small decline in Net Profit by 8.01%. The bank's net profit has decreased from Rs. 2.76 Arba in the fourth quarter of FY 2075/2076 to Rs. 2.54 Arba in the fourth quarter of FY 2076/2077.

As per the report, the business environment has affected the banking sector as a whole which has affected the profitability. However, given the scenario, the bank performed on a satisfactory level.

The bank has Rs. 1.30 Arba as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means HBL can distribute around 14% (approx.) dividends from the earnings of FY 2076/2077 if other regulatory requirements are not required. However, as per the NRB circular, the interest amount which cannot be recovered in Q4, of FY 2076/2077 can be shown in this year’s balance sheet if it is recovered till Q1 of FY 2077/2078. So, the distributable amount might be slightly changed.

The bank’s deposit from customers increased by 14.51% to Rs. 1.25 Kharba whereas loans and advances to customers increased by 9.66% to Rs. 1.01 Kharba till the fourth quarter. The Net Interest Income (core business income) of the bank has declined by 5.46% to Rs. Rs. 4.75 Arba compared to the corresponding quarter of the previous year.

The bank’s paid-up capital stands at Rs. 9.37 Arba with Rs. 8.17 Arba in Reserve and surplus. The Non-performing loan (NPL) remains fairly stable with the corresponding quarter at 1.01%, however, decreased.

The earnings per share (EPS) of the Bank stood at Rs. 27.13 and Net worth per share stood at Rs. 187.20. The company traded at a P/E multiple of 19.91 times.

Click here for Q4 report

Major Highlights:

Particulars ('000)

Himalayan Bank Limited

Q4, 2076/2077

Q4,2075/2076

Difference

Paid-up Capital

9,372,281.42

8,520,255.84

10.00%

Share Premium

-

-

-

Retained Earnings

2,503,056.61

2,171,146.87

15.29%

Reserves

5,669,958.93

5,303,395.65

6.91%

Deposit from Customers

125,264,381.69

109,387,060.43

14.51%

Loans & Advances to Customers

101,653,351.47

92,697,318.36

9.66%

Net Interest Income

4,756,647.01

5,031,340.84

-5.46%

Fee and Commission Income

748,673.05

821,306.48

-8.84%

Impairment Charge/(Reversal)

303,100.92

133,622.09

126.83%

Personnel Expenses

1,644,236.55

1,638,125.61

0.37%

Operating Profit

3,348,838.01

3,942,211.73

-15.05%

Profit/(Loss) for the Year

2,542,588.35

2,763,848.47

-8.01%

Total Comprehensive Income

2,572,929.29

2,736,495.36

-5.98%

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

1,309,243.93

-

 

Capital Adequacy Ratio (CAR) (%)

14.67%

12.60%

-

Non-Preforming Loan (NPL)

1.01%

1.12%

-

CCD (as per NRB Directive)

66.85%

75.59%

-

Cost of Fund (%)

6.18%

6.55%

-

Base Rate (%)

8.38%

9.05%

-

Annualized EPS (Rs.)

27.13

32.43

-16.34%

Net worth per share (Rs.)

187.20

187.72

-0.28%

Qtr End PE Ratio (Rs.)

19.91

-

-

Qtr End Market Price

540.00

-

-

Price to Book (PB Ratio)

2.88

-

-