Nepal Bangladesh Bank profit jump by 69.54% in Q2, able to increase its EPS to Rs 19.62 and PE stand at 9.63 times
Tue, Feb 5, 2019 7:50 AM on Financial Analysis, Stock Market, Latest,
Nepal Bangladesh Bank Limited (NBB) has reported an outstanding 69.54% rise in the net profit in the second quarter of the fiscal year 2075/76.
The bank’s profit has increased from Rs 46.79 crore in the second quarter of the fiscal year 2074/75 to Rs 79.33 crore in the second quarter of the fiscal year 2075/76. In the second quarter of the FY 2075/76, the bank has Rs 61.82 crore as Free Profit after Regulatory Adjustments which can be utilized in distributing dividends to its shareholders to its shareholders after maintaining the mandatory reserve as per NRB directives.
The bank’s deposit has growth rate of 25.01% to Rs 52.47 arba and loans and advances have also increased by 22.76% to Rs 51.40 arba in the second quarter.
After the NRB relaxation to include inter-bank lending amount while calculating CCD, most of the banks borrowing increased drastically in the second quarter. NBB borrowing has also increased by 68.15% to Rs 1.67 arba in the second quarter.
The net interest income of the bank has increased to Rs 1.39 arba from Rs 82.74 crore of the corresponding quarter.
The bank’s paid up capital stands at Rs 8.08 arba with Rs 3.51 arba as its reserve.
The Non-Performing Loan (NPL) has also increased to 1.78% from 0.73%.
In the second quarter, the EPS of the bank stands at Rs 19.62. The net worth per share stands at Rs 143.40.
The base rate declines by 0.57 basis points to 10.82% where as its CCD ratio stands at 77.29%.
Currently its stock is traded at PE of 9.63 which is below industry average indicating its price is relatively cheaper in banking industry.
Major Highlights:
|
Particulars (In Rs '000) |
Nepal Bangladesh Bank Limited |
||
|---|---|---|---|
|
Q2 2075/76 |
Q2 2074/75 |
Difference |
|
|
Paid Up Capital |
8,088,299 |
8,085,599 |
0.03% |
|
Reserve & Surplus |
3,510,618 |
2,899,163 |
21.09% |
|
Deposits |
52,471,689 |
41,974,650 |
25.01% |
|
Borrowings |
1,671,862 |
994,250 |
68.15% |
|
Loans & Advances |
51,403,457 |
41,871,523 |
22.76% |
|
Net Interest Income |
1,396,541 |
827,400 |
68.79% |
|
Impairment Charge/(Reversal) |
-216,737 |
-175,528 |
- |
|
Operating Profit |
1,051,705 |
663,529 |
58.50% |
|
Profit/(Loss) for the Year |
793,309 |
467,920 |
69.54% |
|
Total Comprehensive Income |
747,198 |
457,781 |
63.22% |
|
Add/ Less: Regulatory adjustment as per NRB |
-175,093 |
-29,871 |
- |
|
Free Profit/ (Loss) after Regulatory Adjustments |
618,216 |
438,049 |
41.13% |
|
Capital Adequacy Ratio (CAR) |
12.35 |
14.63 |
-15.58% |
|
NPL |
1.78 |
0.73 |
143.84% |
|
CCD (as per NRB Directives) |
77.29 |
74.04 |
4.39% |
|
Base Rate (%) |
10.82 |
11.39 |
-5.00% |
|
Annualized EPS (In Rs.) |
19.62 |
11.57 |
69.48% |
|
Net Worth per Share (In Rs.) |
143.40 |
135.86 |
5.56% |
|
PE Ratio |
9.63 |
- |
- |
