Nepal Bangladesh Bank Q4 financials: profit rises by 41.56% with EPS of Rs 20.02 and has 12% dividend distribution capacity

Thu, Aug 15, 2019 9:34 AM on Financial Analysis, Stock Market, Latest,

Nepal Bangladesh Bank Limited (NBB) has published an impressive fourth quarter report for FY 2075/76 with 41.56% growth in net profit.

The bank’s profit has increased from Rs 1.14 arba in the fourth quarter of the fiscal year 2074/75 to Rs 1.61 arba in the fourth quarter of the fiscal year 2075/76.

The bank’s deposit from customers increased by 24.50% to Rs 59.82 arba and also loans and advances to customers rises by 28.99% to Rs 52.72 arba till the fourth quarter. The net interest income (core business income) of the bank has increased by 47.89% to Rs 2.91 arba from Rs 1.97 arba of the corresponding quarter.

In the same quarter, the bank has Rs 1.03 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. This means NBB can distribute maximum 12% (approx.) dividend from this year profit if other regulatory requirements are not required. 

The bank’s paid up capital stands at Rs 8.08 arba with Rs 4.36 arba as its reserve and surplus. The Non-Performing Loan (NPL) of the bank increased to 1.56% in Q4.

In the fourth quarter, the EPS of the bank stands at Rs 20.02. The net worth per share stands at Rs 153.91 and quarter end PE ratio stands at 11.09 times.

Major Highlights:

Particulars (In Rs '000)

Nepal Bangladesh Bank

Q4 2075/76

Q4 2074/75

Difference

Paid Up Capital

8,088,299

8,088,299

0.00%

Share Premium

 - - -

Retained Earnings

1,039,759

941,464

10.44%

Reserves

3,320,445

2,707,786

22.63%

Deposits from Customers

59,827,534

48,052,953

24.50%

Loans & Advances to customers

52,729,583

40,878,524

28.99%

Net Interest Income

2,914,334

1,970,622

47.89%

Impairment Charge/(Reversal)

-357,489

-298,880

-

Personnel Expenses

1,015,224

755,659

34.35%

Operating Profit

2,339,535

1,600,079

46.21%

Profit/(Loss) for the Year

1,619,518

1,144,035

41.56%

Total Comprehensive Income

1,578,954

1,216,074

29.84%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments

1,039,759

-

-

Capital Adequacy Ratio (CAR)

13.75

14.37

-4.31%

NPL

1.56

1.13

38.05%

CCD (as per NRB Directives)

72.88

72.15

1.01%

Cost of Fund (%)

7.6

7.99

-4.88%

Base Rate (%)

10.2

11.51

-11.38%

EPS (In Rs.)

20.02

14.14

41.56%

Net Worth per Share (In Rs.)

153.91

145.12

6.06%

Qtr End PE Ratio (times)

11.09

-

-