Laxmi bank's Net Profit decreased by a meager 6.62%; EPS and P/E ratio at Rs.15.13 and 13.81 times respectively
Fri, Aug 14, 2020 1:13 PM on Latest, Company Analysis,
Laxmi Bank Limited (LBL) has published its fourth-quarter report for the FY 2076/2077 with a slight decrease in Net Profit by 6.62%. The bank's net profit has decreased from Rs. 1.59 Arba in the fourth quarter of FY 2075/2076 to Rs. 1.48 Arba in the fourth quarter of FY 2076/2077.
As per the management, the outbreak of global pandemic COVID-19 has affected the revenue side and balance sheet growth of the business which may likely persist for the subsequent fiscal year(s). However, the robust risk management process and adequate internal capital might enable the company to absorb the effect of the short-run downturn.
The bank has Rs. 1.12 Arba as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means LBL can distribute around 11% (approx.) dividend from the earnings of FY 2076/2077 if other regulatory requirements are not required.
The bank’s deposit from customers increased by 25.57% to Rs. 1 Kharba whereas loans and advances to customers increased by 19.87% to Rs. 89.43 Arba till the fourth quarter. The Net Interest Income (core business income) of the bank has increased by a meager 7.65% to Rs. 3.41 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 9.81 Arba with Rs. 4.14 Arba in Reserve and surplus. The Non-performing loan (NPL) has increased to 1.04% in this quarter.
The earnings per share (EPS) of the Bank stood at Rs. 15.13 and Net worth per share stood at Rs. 142.24. The company traded at a P/E multiple of 13.81 times.
Major Highlights:
|
Particulars ('000) |
Laxmi Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
9,812,560.00 |
8,920,509.00 |
10.00% |
|
Share Premium |
- |
- |
- |
|
Retained Earnings |
1,600,081.00 |
1,453,368.00 |
10.09% |
|
Reserves |
2,544,326.00 |
2,276,159.00 |
11.78% |
|
Deposit from Customers |
100,864,397.00 |
80,324,633.00 |
25.57% |
|
Loans & Advances to Customers |
89,439,821.00 |
74,615,900.00 |
19.87% |
|
Net Interest Income |
3,412,005.00 |
3,169,675.00 |
7.65% |
|
Fee and Commission Income |
809,230.00 |
740,741.00 |
9.25% |
|
Impairment Charge/(Reversal) |
345,547.00 |
127,515.00 |
- |
|
Personnel Expenses |
1,192,825.00 |
1,133,814.00 |
5.20% |
|
Operating Profit |
2,147,195.00 |
2,292,335.00 |
-6.33% |
|
Profit/(Loss) for the Year |
1,484,789.00 |
1,590,074.00 |
-6.62% |
|
Total Comprehensive Income |
1,747,551.00 |
1,529,485.00 |
14.26% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
1,127,262.00 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
12.46% |
11.60% |
- |
|
Non-Performing Loan (NPL) |
1.04% |
1.20% |
- |
|
CCD (as per NRB Directive) |
71.77% |
78.12% |
- |
|
Cost of Fund (%) |
6.18% |
7.32% |
- |
|
Base Rate (%) |
9.23% |
10.26% |
- |
|
EPS (Rs.) |
15.13 |
17.82 |
-15.10% |
|
Net worth per share (Rs.) |
142.24 |
141.80 |
0.31% |
|
Qtr End PE Ratio (Rs.) |
13.81 |
- |
- |
|
Qtr End Market Price |
209.00 |
- |
- |
|
Price to Book (PB Ratio) |
1.46 |
- |
- |
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