Huge provisions of Rs 92.40 crore leads to 9.61% decline in net profit of Nepal Investment Bank; earns Rs 2.56 arba till Q3

Nepal Investment Bank Limited (NIB) has published its third quarter report for the FY 2075/76 with a decline in net profit by 9.61%.

The bank’s profit has decreased from Rs 2.83 arba in the third quarter of the fiscal year 2074/75 to Rs 2.56 arba in the third quarter of the fiscal year 2075/76. The banks profit declines mainly due to huge provision of possible losses (Impairment charges) of Rs 92.40 crore.

The bank’s deposit rises by meager 3.99% to Rs 1.42 kharba whereas loans and advances have also increased by 4.82% to Rs 1.24 kharba in the third quarter. The net interest income (core business income) of the bank has also increased by 19.26% to Rs 4.91 arba from Rs 4.11 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 12.58 arba with Rs 12.48 arba as its reserve. The Non-Performing Loan (NPL) rises massively to 3.04%.

In the same quarter, the bank has Rs 1.43 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 1.90 arba (approx.) as distributable profit. This means NIB can distribute around 15% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory requirements are not required.

In the third quarter, the annualized EPS of the bank stands at Rs 27.17. The net worth per share stands at Rs 199.20 and PE ratio stands at 20.21 times.

Major Highlights:

 * Figure are of Immediate Previous Year Ending (Audited)

* Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q3 end paid up capital.