Nepal Credit and Commerce Bank Limited (NCCB), that started joint operation by merging with 4 other development banks from January 1, 2017, has reported a massive 55.20% drop in its net profit.
Accounting for all the merged 5 companies, its non-performing loans (NPL) has surged to 4.68% in Q3 from 1.63% last year. Due to this, it has set aside more than Rs 1 arba as provision only. This has shrunk its net profit to only Rs 16.73 crore as of the end of third quarter this year.
Major positive aspects of NCC Bank are its increase in deposits and loans. As of Q3, its deposit base has reached Rs 55.26 arba while loans have reached Rs 48.70 arba—more than double the increase as compared to the figures last year. Likewise, its net interest income has also increased by a massive 86.46% to Rs 1.54 arba. Looking at these figures, NCC Bank can compare with other commercial banks if it is able to decrease its bad loans.
Its paid up capital now stands at Rs 4.67 arba with a massive reserve of Rs 2.39 arba. As of Q3, its annualized EPS has shrunk to only Rs 4.77, P/E ratio at 95.17 times and net worth per share at Rs 151.16.
Major Highlights:
| Indicators (Rs in "000") |
FY 2073/74 Q3 |
FY 2072/73 Q3 |
Difference (%) |
| Paid Up Capital |
4,679,058 |
2,353,176 |
98.84% |
| Reserve and Surplus |
2,393,685 |
981,460 |
143.89% |
| Deposits |
55,264,918 |
27,416,873 |
101.57% |
| Loans and Advances |
48,702,751 |
23,195,722 |
109.96% |
| Net Interest Income |
1,547,384 |
829,881 |
86.46% |
| Provision |
1,006,815 |
305,860 |
229.18% |
| Write Back |
166,971 |
184,988 |
-9.74% |
| Operating Profit |
86,656 |
354,890 |
-75.58% |
| Net Profit |
167,362 |
373,570 |
-55.20% |
| Capital Adequacy Ratio |
12.06% |
11.63% |
3.70% |
| NPL |
4.68% |
1.63% |
187.12% |
| Cost of Fund |
5.75% |
4.27% |
34.66% |
| CD Ratio (as per NRB) |
77.14% |
76.68% |
0.60% |
| EPS (Annualized) |
4.77 |
21.17 |
-77.47% |
| PE Ratio |
95.17 |
|
|
| Networth Per Share |
151.16 |
|
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