Machhapuchchhre Bank earns Rs 1.70 arba with 36.32% growth in Q4; can distribute maximum 16% dividend

Machhapuchchhre Bank Limited (MBL) has published an outstanding fourth quarter report for FY 2075/76 with 36.32% growth in net profit.

The bank’s profit has increased from Rs 1.24 arba in the fourth quarter of the fiscal year 2074/75 to Rs 1.70 arba in the fourth quarter of the fiscal year 2075/76.

In the same quarter, the bank has Rs 1.32 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. This means MBL can distribute maximum 16% (approx.) dividend next year if other regulatory requirements are not required. 

The existing capital adequacy of MBL is 12.88% which is near to NRB requirements of 11% minimum. This suggests that this years expected priority of MBL dividend policy can be more on bonus share and less on cash dividend. 

The bank’s has deposit from customers of Rs 85.19 arba and loans and advances to customers stands  at Rs 75.29 arba in till the fourth quarter. The net interest income of the bank has increased by 29.20% to Rs 3.53 arba from Rs 2.73 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8.05 arba with Rs 3.18 arba as its reserve and surplus.

The Non-Performing Loan (NPL) has also slightly decreased to 0.37% from 0.44%.

In the fourth quarter, the EPS of the bank stands at Rs 21.15. The net worth per share stands at Rs 139.58 and PE ratio stands at 12.48 times.

The earning yields of the company is 8% (risky return) which is still below risk free return (if we considered ongoing debenture return of 10%).

Click Here for Q4 report:

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.