Low fee-based and trading income; high impairment charge leads to 18.51% decline in net profit of Standard Chartered Bank Nepal
Fri, Aug 14, 2020 8:26 AM on Company Analysis, Latest,
Standard Chartered Bank Nepal Limited (SCB) has published its fourth-quarter report for the FY 2076/77 today with a decline in net profit by 18.51%. The impairment charge (provision) of Rs 43.90 arba leads to a decline in net profit this quarter.
The bank’s profit has decreased from Rs 2.43 arba in the fourth quarter of the fiscal year 2075/76 to Rs 1.98 arba in the fourth quarter of the fiscal year 2076/77. In the same quarter, the bank has Rs 1.51 arba as a distributable profit after PL Appropriation and Regulatory Adjustments. This means SCB can distribute around 18% (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 30.02% to Rs 98.46 arba and loans and advances to customers increased by 1.54% to Rs 53.91 arba in the fourth quarter. The net interest income (core business income) of the bank has decreased by 0.24% to Rs 3.51 arba in Q4.
The bank’s paid-up capital stands at Rs 8.01 arba with Rs 7.09 arba as its reserve and surplus. The Non-performing loan increased to 0.44% from 0.15%.
In the fourth quarter, the EPS of the bank stands at Rs 24.76. The net worth per share stands at Rs 188.50 and qtr end PE ratio stands at 26.05 times.
Major Highlights:
|
Particulars (In Rs '000) |
Standard Chartered Bank Nepal |
||
|---|---|---|---|
|
Q4 2076/77 |
Q4 2075/76 |
Difference |
|
|
Paid Up Capital |
8,011,431 |
8,011,431 |
0.00% |
|
Share Premium |
0 |
0 |
|
|
Retained Earnings |
1,521,084 |
1,807,876 |
-15.86% |
|
Reserves |
5,569,054 |
5,107,767 |
9.03% |
|
Deposits from Customers |
98,467,598 |
75,731,527 |
30.02% |
|
Loans & Advances to Customers |
53,911,294 |
53,092,117 |
1.54% |
|
Net Interest Income |
3,513,259 |
3,521,862 |
-0.24% |
|
Fee and Commission Income |
732,714 |
873,845 |
-16.15% |
|
Impairment Charge/(Reversal) |
439,066 |
88,238 |
397.59% |
|
Personnel Expenses |
1,102,472 |
1,084,359 |
1.67% |
|
Operating Profit |
2,841,440 |
3,477,627 |
-18.29% |
|
Profit/(Loss) for the Year |
1,983,926 |
2,434,665 |
-18.51% |
|
Total Comprehensive Income |
1,976,564 |
2,403,573 |
-17.77% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
1,515,780 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
18.54 |
19.90 |
-6.83% |
|
NPL |
0.44 |
0.15 |
193.33% |
|
CCD (as per NRB Directives) |
66.43 |
73.13 |
-9.16% |
|
Cost of Fund (%) |
4.84 |
5.5 |
-12.00% |
|
Base Rate (%) |
7 |
7.63 |
-8.26% |
|
EPS (In Rs.) |
24.76 |
30.39 |
-18.51% |
|
Net Worth per Share (In Rs.) |
188.50 |
186.32 |
1.17% |
|
Qtr End PE Ratio (times) |
26.05 |
- |
- |
|
Qtr End Market Price* |
645 |
- |
- |
|
Price to Book (PB Ratio) |
3.42 |
- |
- |
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