Himalayan Bank’s Net Profit Surges 1,041.16% to Rs. 1.48 Arba in Q4 FY 2082/83; EPS Jumps 994.42% to Rs. 6.56

Himalayan Bank Limited (HBL) has reported a 1,041.16% surge in net profit in the fourth quarter of FY 2082/83, earning Rs. 1.48 Arba compared to Rs. 12.97 Crore in the corresponding quarter of the previous fiscal year.

The bank’s paid-up capital increased by 4.27% to Rs. 22.58 Arba from Rs. 21.66 Arba. Share premium stood at Rs. 52.73 Crore, while reserves increased 9.91% to Rs. 26.81 Arba from Rs. 24.39 Arba. Retained losses widened by 11.13% to Rs. 98.40 Crore from Rs. 88.54 Crore.

Himalayan Bank’s deposits grew 13.72% to Rs. 3.52 Kharba from Rs. 3.09 Kharba a year earlier. However, loans and advances to customers declined 1.24% to Rs. 2.28 Kharba from Rs. 2.31 Kharba.

Net interest income declined 15.74% to Rs. 8.81 Arba from Rs. 10.46 Arba. Personnel expenses increased 6.96% to Rs. 3.66 Arba, while impairment charges declined 22.88% to Rs. 2.90 Arba from Rs. 3.76 Arba.

The bank’s operating profit declined 23.60% to Rs. 2.63 Arba from Rs. 3.44 Arba in the previous fiscal year. Despite the decline in operating profit and net interest income, the bank recorded a significant increase in net profit during the review period.

Himalayan Bank’s capital adequacy ratio improved to 11.69% from 10.60%, indicating a stronger capital position. Meanwhile, the NPL ratio remained broadly stable at 7.96%, compared to 7.97% in the previous fiscal year.

The bank’s cost of funds declined significantly by 25% to 3.63% from 4.84%. Its earnings per share (EPS) surged 994.42% to Rs. 6.56 from Rs. 0.60.

Net worth per share increased 3.34% to Rs. 177.48 from Rs. 171.75. At the end of the review quarter, Himalayan Bank’s share price stood at Rs. 194.50, with its price-to-earnings (P/E) ratio recorded at 29.67 times.

Report:

Major Financial Highlights:

Particulars (In Rs '000) Himalayan Bank Limited
Q4 2082/83 Q4 2081/82 Difference
Paid Up Capital 22,581,662.53 21,656,615.63 4.27%
Share Premium 527,276.73 0.00  
Retained Earnings -9,840,149.79 -8,854,298.01 11.13%
Reserves 26,809,134.19 24,392,222.81 9.91%
Deposit 351,577,090.39 309,158,672.47 13.72%
Loans & Advances to Customers 227,779,900.60 230,637,296.25 -1.24%
Net Interest Income 8,810,162.44 10,455,626.08 -15.74%
Personnel Expenses 3,656,373.23 3,418,457.49 6.96%
Impairment Charges 2,896,498.12 3,756,038.66 -22.88%
Operating Profit 2,626,077.32 3,437,451.00 -23.60%
Net Profit 1,480,385.46 129,726.03 1041.16%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  -9,840,149.79 -8,854,298.01 -
Capital Adequacy (%) 11.69 10.60 10.28%
NPL (%) 7.96 7.97  
Cost of Fund (%) 3.63 4.84 -25.00%
EPS  (In Rs.) 6.56 0.60 994.42%
Net Worth per Share (In Rs.) 177.48 70.38 152.18%
Qtr end PE Ratio (times) 29.67 - -
Qtr End Market Price 194.5 - -