Low credit recovery due to global pandemic COVID-19 resulting negative Rs 6.19 distributable profit of Nepal Bank; earns Rs 1.99 arba in Q3
Sun, May 10, 2020 7:21 AM on Financial Analysis, Stock Market, Latest,
Nepal Bank Limited (NBL) has published its third quarter report for the FY 2076/77 with fall in net profit by 11.09%. The bank’s profit has decline from Rs 2.24 arba in the third quarter of the fiscal year 2075/76 to Rs 1.99 arba in the third quarter of the fiscal year 2076/77.
In the same quarter, the bank has negative Rs 6.19 crore as distributable profit after PL Appropriation and Regulatory Adjustments. This massive decline in distributable profit is due to adverse impact of global pandemic COVID-19 on various sectors of economy resulting into problem in credit recovery.
The bank’s deposit from customers has increased by 4.69% to Rs 1.22 kharba and loans and advances to customers increased by 10.02% to Rs 1.01 kharba till the third quarter. The net interest income of the bank has decreased by 10.73% to Rs 4.21 arba from Rs 4.72 arba of the corresponding quarter.
The bank’s paid up capital stands at Rs 9.81 arba with Rs 19.29 arba as its reserve and surplus. The Non-Performing Loan (NPL) remains at 2.64%.
Nepal Bank Limited AGM has already endorsed 15% bonus shares and 10% cash dividend for last FY 2075/76 which is yet to be adjusted in published Q3 report.
In the third quarter, the annualized EPS of the bank stands at Rs 27.13. The net worth per share stands at Rs 296.63 and qtr end PE ratio stands at 9.25 times.
Major Highlights:
* 2075/76 figure are of Immediate Previous Year Ending.
|
Particulars (In Rs '000) |
Nepal Bank Limited |
||
|---|---|---|---|
|
Q3 2076/77 |
Q3 2075/76 |
Difference |
|
|
Paid Up Capital* |
9,811,148 |
9,811,148 |
0.00% |
|
Share Premium* |
3,262,811 |
3,262,811 |
|
|
Retained Earnings* |
1,852,595 |
2,895,693 |
-36.02% |
|
Reserves* |
14,176,228 |
13,311,685 |
6.49% |
|
Deposits from Customers* |
122,700,367 |
117,200,789 |
4.69% |
|
Loans & Advances to Customers* |
101,678,606 |
92,421,637 |
10.02% |
|
Net Interest Income |
4,218,247 |
4,725,255 |
-10.73% |
|
Fee and Commission Income |
573,132 |
754,510 |
-24.04% |
|
Impairment Charge/(Reversal) |
331,902 |
425,764 |
- |
|
Personnel Expenses |
1,710,818 |
1,896,103 |
-9.77% |
|
Operating Profit |
2,650,511 |
3,123,362 |
-15.14% |
|
Profit/(Loss) for the Year |
1,996,583 |
2,245,577 |
-11.09% |
|
Total Comprehensive Income |
802,561 |
2,001,181 |
-59.90% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
-61,983 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
15.90 |
17.02 |
-6.58% |
|
NPL |
2.64 |
2.71 |
-2.58% |
|
CCD (as per NRB Directives) |
73.65 |
74.32 |
-0.90% |
|
Cost of Fund (%) |
4.91 |
4.11 |
19.46% |
|
Base Rate (%) |
7.49 |
6.92 |
8.24% |
|
Annualized EPS (In Rs.) |
27.13 |
30.52 |
-11.09% |
|
Net Worth per Share (In Rs.) |
296.63 |
298.45 |
-0.61% |
|
Qtr End PE Ratio (times) |
9.25 |
- |
- |
|
Qtr End Market Price* |
251 |
- |
- |
|
Price to Book (PB Ratio) |
0.85 |
- |
- |
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