Huge impairment charge of Rs 1.61 arba restricts the growth of NMB Bank financials in Q4; has Rs 1.42 arba as distributable profit
Fri, Aug 14, 2020 7:15 AM on Company Analysis, Latest,
NMB Bank Limited (NMB) has published its fourth-quarter report for the FY 2076/77 today with a meager 0.59% rise in net profit. The massive impairment charge (provision) of Rs 1.61 arba restricts the growth of NMB Bank financials this year.
The bank’s profit has increased from Rs 2.25 arba in the fourth quarter of the fiscal year 2075/76 to Rs 2.27 arba in the fourth quarter of the fiscal year 2076/77. In the same quarter, the bank has Rs 1.42 arba as distributable profit after PL Appropriation and Regulatory Adjustments. This means NMB can distribute around 10% (approx.) dividends from the earnings of FY 2076/77 if other regulatory requirements are not required.
The bank’s deposit from customers has increased by 34.50% to Rs 1.31 kharba and loans and advances to customers increased by 30.76% to Rs 1.15 kharba in the fourth quarter. The net interest income (core business income) of the bank has increased by 30.20% to Rs 5.52 arba from Rs 4.24 arba of the corresponding quarter.
The bank’s paid-up capital stands at Rs 13.95 arba with Rs 6.91 arba as its reserve and surplus. The Non-performing loan increased to 2.68% from 0.82%.
In the fourth quarter, the EPS of the bank stands at Rs 16.28. The net worth per share stands at Rs 149.57 and qtr end PE ratio stands at 24.39 times.
Major Highlights:
|
Particulars (In Rs '000) |
NMB Bank Limited |
||
|---|---|---|---|
|
Q4 2076/77 |
Q4 2075/76 |
Difference |
|
|
Paid Up Capital |
13,950,987 |
9,618,163 |
45.05% |
|
Share Premium |
120,167 |
2,512,799 |
|
|
Retained Earnings |
964,014 |
1,780,327 |
-45.85% |
|
Reserves |
5,831,285 |
3,491,726 |
67.00% |
|
Deposits from Customers |
131,660,368 |
97,892,302 |
34.50% |
|
Loans & Advances to Customers |
115,703,255 |
88,485,031 |
30.76% |
|
Net Interest Income |
5,525,614 |
4,244,021 |
30.20% |
|
Fee and Commission Income |
914,171 |
1,003,531 |
-8.90% |
|
Impairment Charge/(Reversal) |
1,619,605 |
166,273 |
874.06% |
|
Personnel Expenses |
1,706,503 |
1,415,793 |
20.53% |
|
Operating Profit |
2,434,665 |
3,248,499 |
-25.05% |
|
Profit/(Loss) for the Year |
2,270,670 |
2,257,276 |
0.59% |
|
Total Comprehensive Income |
2,281,726 |
2,257,901 |
1.06% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
1,426,829 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
14.56 |
15.43 |
-5.64% |
|
NPL |
2.68 |
0.82 |
226.83% |
|
CCD (as per NRB Directives) |
72.68 |
73.31 |
-0.86% |
|
Cost of Fund (%) |
6.99 |
7.26 |
-3.72% |
|
Base Rate (%) |
8.95 |
9.86 |
-9.23% |
|
EPS (In Rs.) |
16.28 |
23.47 |
-30.65% |
|
Net Worth per Share (In Rs.) |
149.57 |
180.94 |
-17.34% |
|
Qtr End PE Ratio (times) |
24.39 |
- |
- |
|
Qtr End Market Price* |
397 |
- |
- |
|
Price to Book (PB Ratio) |
2.65 |
- |
- |
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