Lumbini Bikas Bank Posts Strong FY 2082/83 Results with 252.96% Surge in Net Profit

Lumbini Bikas Bank Limited (LBBL) has released its fourth-quarter financial results for FY 2082/83, reporting a remarkable improvement in profitability, primarily driven by a sharp decline in impairment charges and stronger operating earnings.

The development bank posted a net profit of Rs. 85.10 crore, registering a 252.96% year-on-year increase from Rs. 24.11 crore in the corresponding period last year. The performance was supported by a 7.53% rise in net interest income, which increased to Rs. 1.99 Arba from Rs. 1.85 Arba a year earlier.

Customer deposits slipped marginally by 0.26% to Rs. 57.44 Arba, while loans and advances remained largely stable, declining by just 0.02% to Rs. 47.05 Arba. Meanwhile, operating profit surged 108.50% to Rs. 1.21 Arba, aided by an 82.66% decline in impairment charges for loans and advances, which dropped to Rs. 13.50 crore.

On the prudential front, the Capital Adequacy Ratio (CAR) stood at 14.96%. The Non-Performing Loan (NPL) ratio increased to 6.94% from 4.71% a year ago, indicating a deterioration in asset quality. However, the cost of funds improved, declining to 3.95% from 5.35%.

The bank reported an Earnings Per Share (EPS) of Rs. 23.48, while Net Worth Per Share improved to Rs. 213.73.

Report:

Major Financial Highlights

Particulars (In Rs '000) Lumbini Bikas Bank Limited
Q4 2082/83 Q4 2081/82 Difference
Paid Up Capital 3,623,678.16 3,623,678.16 0.00%
Share Premium 0.00 0.00 0.00%
Retained Earnings 615,580.56 184,366.15 233.89%
Reserves 3,505,498.98 3,084,034.80 13.67%
Deposit 57,443,387.62 57,594,111.70 -0.26%
Loans & Advances  47,056,203.36 47,067,103.29 -0.02%
Net Interest Income 1,997,221.86 1,857,301.05 7.53%
Personnel Expenses 578,052.08 459,193.08 25.88%
Impairment Charges 135,036.73 778,752.40 -82.66%
Operating Profit 1,217,812.83 584,077.46 108.50%
Net Profit 851,015.56 241,106.43 252.96%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  615,580.56 184,366.15 233.89%
Capital Adequacy (%) 14.96 13.56 10.32%
NPL (%) 6.94 4.71  
Cost of Fund (%) 3.95 5.35 -26.17%
EPS  (In Rs.) 23.48 6.65 252.96%
Net Worth per Share (In Rs.) 213.73 190.20 12.37%
Qtr end PE Ratio (times) 20.58 - -
Qtr End Market Price 483.4 - -