Nepal Bangladesh Bank profit decline by 21.62% in Q4; has 5% dividend distribution capacity from distributable profit
Fri, Aug 14, 2020 11:28 AM on Latest, Company Analysis,
Nepal Bangladesh Bank Limited (NBB) has published its fourth-quarter report for the FY 2076/2077 with a decrease in Net Profit by 21.62%. The bank's net profit has decreased from Rs. 1.58 Arba in the fourth quarter of FY 2075/2076 to Rs. 1.24 Arba in the fourth quarter of FY 2076/2077.
The bank has Rs. 44.91 crore as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means NBB can distribute around 5% (approx.) dividend from the earnings of FY 2076/2077 if other regulatory requirements are not required. However, as per the NRB circular, the interest amount which cannot be recovered in Q4, of FY 2076/2077 can be shown in this year’s balance sheet if it is recovered till Q1 of FY 2077/2078. So, the distributable amount might be slightly changed.
The bank’s deposit from customers increased by 18.15% to Rs. 66.43 Arba whereas loans and advances to customers increased by 12.28% to Rs. 58.96 Arba till the fourth quarter. The Net Interest Income (core business income) of the bank has decreased by 2.13% to Rs. 2.84 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 8.49 Arba with Rs. 4.60 Arba in Reserve and surplus. The Non-performing loan (NPL) has increased to 2.89% in this quarter.
The earnings per share (EPS) of the Bank stood at Rs. 15.01 and Net worth per share stood at Rs. 154.15. The company traded at a P/E multiple of 13.92 times.
Major Highlights:
|
Particulars ('000) |
Nepal Bangladesh Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
8,495,814.29 |
8,088,299.26 |
5.04% |
|
Share Premium |
- |
- |
- |
|
Retained Earnings |
488,394.25 |
1,009,876.14 |
-51.64% |
|
Reserves |
4,112,199.33 |
3,318,769.44 |
23.91% |
|
Deposit from Customers |
66,435,054.42 |
56,228,819.34 |
18.15% |
|
Loans & Advances to Customers |
58,966,517.03 |
52,519,196.83 |
12.28% |
|
Net Interest Income |
2,844,736.47 |
2,906,536.92 |
-2.13% |
|
Fee and Commission Income |
1,139,052.91 |
1,024,496.81 |
11.18% |
|
Impairment Charge/(Reversal) |
796,478.56 |
447,244.35 |
78.09% |
|
Personnel Expenses |
1,069,023.53 |
979,870.90 |
9.10% |
|
Operating Profit |
1,800,558.29 |
2,272,027.56 |
-20.75% |
|
Profit/(Loss) for the Year |
1,244,580.20 |
1,587,960.14 |
-21.62% |
|
Total Comprehensive Income |
1,262,106.75 |
1,547,395.91 |
-18.44% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
449,114.01 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
13.17% |
13.63% |
- |
|
Non-Performing Loan (NPL) |
2.89% |
1.74% |
- |
|
CCD (as per NRB Directive) |
69.71% |
72.88% |
- |
|
Cost of Fund (%) |
6.37% |
7.60% |
- |
|
Base Rate (%) |
8.62% |
10.20% |
- |
|
EPS (Rs.) |
15.01 |
19.63 |
-23.54% |
|
Net worth per share (Rs.) |
154.15 |
153.51 |
0.42% |
|
Qtr End PE Ratio (Rs.) |
13.92 |
- |
- |
|
Qtr End Market Price |
209.00 |
- |
- |
|
Price to Book (PB Ratio) |
1.35 |
- |
- |
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