Mega Bank’s continues to improve its financial performance; profit rises by 85.96% in Q2

Thu, Feb 7, 2019 9:22 AM on Financial Analysis, Latest, Stock Market,

Mega Bank Limited (MEGA) has reported an outstanding rise in the net profit for the second quarter of the fiscal year 2075/76. As per the quarterly report published today, the net profit has increased by 85.96% in the Q2 of this fiscal year.

The bank’s profit has increased from Rs 39.36 crore in the second quarter of the fiscal year 2074/75 to Rs 73.20 crore in the second quarter of the fiscal year 2075/76. In the second quarter of the FY 2075/76, the bank had Rs 54.70 crore as Free Profit after Regulatory Adjustments which can be utilized in distributing dividends to its shareholders after maintaining the mandatory reserve as per NRB directives.

The bank’s deposit has growth rate of 55.48% to Rs 70.85 arba and loans and advances have also increased by 61.52% to Rs 65.84 arba in the second quarter.

The net interest income of the bank has increased to Rs 1.78 arba from Rs 84.63 crore of the corresponding quarter.

The bank’s paid up capital stands at Rs 10.38 arba with Rs 2.31 arba as its reserve as of the end of Q2 of FY 2075/76.

The Non-Performing Loan (NPL) has slightly increased to 1.21% from 0.98%.

In the second quarter, the EPS of the bank stands at Rs 14.09. The net worth per share stands at Rs 122.26. Currently its stock is trading at PE of 12.24 times.

Major Highlights:

Particulars (In Rs '000)

Mega Bank Nepal Limited

Q2 2075/76

Q2 2074/75

Difference

Paid Up Capital

10,388,621

7,376,743

40.83%

Reserve & Surplus

2,312,706

1,664,534

38.94%

Deposits

70,859,462

45,573,713

55.48%

Borrowings

1,124,865

1,011,144

11.25%

Loans & Advances

65,849,351

40,767,599

61.52%

Net Interest Income

1,780,153

846,347

110.33%

Impairment Charge/(Reversal)

-298,197

-97,232

-

Operating Profit

1,034,126

553,935

86.69%

Profit/(Loss) for the Year

732,045

393,649

85.96%

Total Comprehensive Income

712,711

393,649

81.05%

Add/ Less: Regulatory adjustment as per NRB

-185,016

-

-

Free Profit/ (Loss) after Regulatory Adjustments

547,029

393,649

38.96%

Capital Adequacy Ratio (CAR)

15.81

18.52

-14.63%

NPL

1.21

0.98

23.47%

CCD (as per NRB Directives)

79.56

79.37

0.24%

Base Rate (%)

10.83

10.96

-1.19%

Annualized EPS (In Rs.)

14.09

10.67

32.05%

Net Worth per Share (In Rs.)

122.26

122.56

-0.25%

PE Ratio

12.24

-

-