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.
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 |
- |
- |