Huge provisions of Rs 1.5 arba leads to 6.66% decline in net profit of Nepal Investment Bank; EPS stands at Rs 26.54
Thu, Aug 15, 2019 8:44 AM on Financial Analysis, Stock Market, Latest,
Nepal Investment Bank Limited (NIB) has published its fourth quarter report for the FY 2075/76 with 6.66% decline in the net profit. This decline in net profit is mainly due to huge impairment charges (Provision of possible losses) of Rs 1.50 arba till the Q4. The bank’s profit has decreased from Rs 3.65 arba in the fourth quarter of the fiscal year 2074/75 to Rs 3.41 arba in the fourth quarter of the fiscal year 2075/76.
In the same quarter, the bank has Rs 1.39 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. This means Nepal Investment Bank can distribute around 11% (approx.) dividend from the earnings of FY 2075/76 if other regulatory requirements are not required.
The bank’s deposit from customers rises by 9.38% to Rs 1.49 kharba whereas loans and advances have also increased by 3.95% to Rs 1.23 kharba in the Q4. The net interest income (core business income) of the bank has increased by 5.18% to Rs 6.15 arba from Rs 5.85 arba of the corresponding quarter.
The bank’s paid up capital stands at Rs 12.86 arba with Rs 12.84 arba as its reserve and surplus. The Non-Performing Loan (NPL) has increased to 2.78%.
In the Q4, the EPS of the bank stands at Rs 26.54. The net worth per share stands at Rs 199.78 and qtr end PE ratio stands at 19.56 times.
Major Highlights:
|
Particulars (In Rs '000) |
Nepal Investment Bank |
||
|---|---|---|---|
|
Q4 2075/76 |
Q4 2074/75 |
Difference |
|
|
Paid Up Capital |
12,869,749 |
10,645,599 |
20.89% |
|
Share Premium |
102,246 |
1,718,454 |
|
|
Retained Earnings |
1,783,677 |
2,735,026 |
-34.78% |
|
Reserves |
10,955,360 |
9,771,943 |
12.11% |
|
Deposits from Customers |
149,392,282 |
136,585,576 |
9.38% |
|
Loans & Advances to customers |
123,001,709 |
118,322,570 |
3.95% |
|
Net Interest Income |
6,153,188 |
5,850,178 |
5.18% |
|
Impairment Charge/(Reversal) |
-1,502,464 |
-675,208 |
- |
|
Personnel Expenses |
1,537,325 |
1,467,836 |
4.73% |
|
Operating Profit |
4,226,622 |
4,958,916 |
-14.77% |
|
Profit/(Loss) for the Year |
3,415,603 |
3,659,323 |
-6.66% |
|
Total Comprehensive Income |
3,385,267 |
3,004,982 |
12.66% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
1,390,683 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
13.65 |
12.66 |
7.82% |
|
NPL |
2.78 |
1.36 |
104.41% |
|
CCD (as per NRB Directives) |
71.97 |
75.01 |
-4.05% |
|
Cost of Fund (%) |
6.31 |
6.31 |
0.00% |
|
Base Rate (%) |
8.33 |
9.02 |
-7.65% |
|
EPS (In Rs.) |
26.54 |
34.37 |
-22.79% |
|
Net Worth per Share (In Rs.) |
199.78 |
233.63 |
-14.49% |
|
Qtr End PE Ratio (times) |
19.56 |
- |
- |
