Machhapuchhre Bank's Net Profit Soars by 92.45% in Q4; EPS Rises to Rs. 17.31
Tue, Aug 5, 2025 8:51 AM on Financial Analysis, Company Analysis, Latest,
Machhapuchhre Bank Limited (MBL) has reported a strong financial performance in the fourth quarter of fiscal year 2081/82, with its net profit nearly doubling. The bank posted a net profit of Rs. 2.01 Arba, reflecting a 92.45% increase compared to Rs. 1.04 Arba in the same period last year. This surge in profitability is largely attributed to a significant reduction in impairment charges, which declined by 74.70% to Rs. 35.37 Crore, down from Rs. 1.39 Arba in the previous fiscal year.
The bank’s operating profit reached Rs. 3.33 Arba, a 99.91% increase from the previous year’s Rs. 1.66 Arba. Net interest income rose by 15.41%, totaling Rs. 5.75 Arba. Deposits climbed by 16.09% to Rs. 1.84 Kharba, while loans and advances to customers increased by 11.74% to Rs. 1.41 Kharba. Borrowings saw a marginal growth of 2.50%, reaching Rs. 2.14 Arba.
In terms of retained earnings, the bank made a notable turnaround, recording Rs. 1.07 Arba, compared to a negative Rs. 35.98 Crore in the previous fiscal year. Reserves also expanded by 8.40%, amounting to Rs. 6.31 Arba. While total income grew, personnel expenses rose by 19.22% to Rs. 2.48 Crore.
Key financial ratios also showed positive movements. The annualized earnings per share (EPS) stood at Rs. 17.31, nearly doubling from Rs. 8.99. The net worth per share increased by 11.23%, reaching Rs. 163.79. The cost of fund fell significantly to 4.23%, down from 5.87%, while the non-performing loan (NPL) ratio declined slightly to 3.83%. Capital adequacy ratio remained healthy at 13.32%, although it was slightly lower than the previous year’s 13.74%.
As of the end of the quarter, the bank's shares traded at Rs. 259.41, with a price-to-earnings (PE) ratio of 14.99 times.
Major Highlights
* Figures are of the Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Machhapuchhre Bank | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 11,621,357.27 | 11,621,357.27* | 0.00% |
| Share Premium | 30,881.77 | 30,881.77* | 0.00% |
| Retained Earnings | 1,072,935.78 | -359,804.77* | - |
| Reserves | 6,310,010.44 | 5,821,299.49* | 8.40% |
| Deposits | 184,176,049.90 | 158,646,909.17* | 16.09% |
| Borrowings | 2,143,480.56 | 2,091,129.01* | 2.50% |
| Loan and advances to Customers | 141,636,859.41 | 126,754,174.78* | 11.74% |
| Net Interest Income | 5,756,716.09 | 4,988,192.78 | 15.41% |
| Personnel Expenses | 2,486,070.22 | 2,085,352.33 | 19.22% |
| Impairment Charges | 353,771.29 | 1,398,187.61 | -74.70% |
| Operating Profit | 3,330,238.93 | 1,665,889.14 | 99.91% |
| Net Profit | 2,011,461.52 | 1,045,199.19 | 92.45% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 1,072,935.78 | -359,804.77 | - |
| Capital Adequacy (%) | 13.32 | 13.74 | -3.06% |
| NPL% | 3.83 | 3.86 | -0.78% |
| Cost of Fund (%) | 4.23 | 5.87 | -27.94% |
| Annualized EPS (In Rs.) | 17.31 | 8.99 | 92.45% |
| Net Worth per Share (In Rs.) | 163.79 | 147.26 | 11.23% |
| Qtr end PE Ratio (times) | 14.99 | ||
| Qtr End Market Price | 259.41 | - | - |
