Himalayan Bank Limited's net profit crosses Rs 1-arba mark by Q4

ShareSansar, August 19:

Himalayan Bank Ltd has now joined the club of commercial banks having the net profit of above an arba.

Publishing the fourth quarterly report of last fiscal year 2070/71 today, HBL stated that it achieved the net profit of Rs 1.1 arba in the last fiscal year, up from Rs 94.37 crore in the corresponding period of the previous fiscal year.

This is the last bank among 30 commercial banks of the country to unveil their financial results of the last year.

Except Himalayan, seven other banks have also their profit above an arba. The other eight banks whose profit stands above an arba are: Agricultural Development Bank Ltd, Everst Bank Ltd, Global IME Bank Ltd, Nabil Bank Ltd, Nepal Bank Ltd and Nepal Investment Bank Ltd. Nabil Bank Ltd has topped the list of highest earners, drawing the net profit of Rs 2.32 arba.

Though the financial statement of the Himalayan Bank shows that its net interest income dropped to Rs 2.5 arba last year from Rs 2.51 arba in the previous year, it has made a very good earning from other sources like fees, commission and discount, foreign exchange gain and other operating income. The total operating income of the bank jumped to Rs 3.75 arba from Rs 3.52 arba in the previous year.

The bank provisioned Rs 27.65 crore for the possible loss.

The bank attributed the profitability of the bank to the increase in the loan portfolio as well as regularization of some of the classified loan accounts and recovery of interest suspense.

“Results of fourth quarter reveal that the profitability of the bank has gone up indicating a healthy growth as compared to the corresponding year,” reads the statement of the bank.

It mobilized Rs 64.67 arba in deposit and Rs 46.45 arba in loan last year, up from Rs 53.07 arba in deposit and Rs 47.06 in loan in the previous year.

HBL’s non-performing loan (NPL) also went down to 2.58 percent from 2.89 percent in the previous year.

Its EPS stands at Rs 38.05, P/E ratio 24.73 times and net worth per share is Rs 220.93.