Nepal Bangladesh profit rises by 54.65%; earns Rs 1.14 arba in Q3 and capital adequacy is near NRB minimum requirement
Tue, May 7, 2019 6:09 AM on Financial Analysis, Stock Market, Latest,
Nepal Bangladesh Bank Limited (NBB) has published its third quarter report for the FY 2075/76 with 54.65% growth in net profit.
The bank’s profit has increased from Rs 73.80 crore in the third quarter of the fiscal year 2074/75 to Rs 1.14 arba in the third quarter of the fiscal year 2075/76.
The bank’s deposit rises by 16.67% to Rs 56.06 arba whereas loans and advances have also increased by 26.04% to Rs 51.52 arba in the third quarter. The net interest income (core business income) of the bank has also increased by an outstanding 50.97% to Rs 2.11 arba from Rs 1.39 arba of the corresponding quarter.
In the same quarter, the bank has Rs 60.25 crore as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 80.33 crore (approx.) as distributable profit. This means Nepal Bangladesh Bank can distribute around 10% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory reserve requirements are not required. NBB Bank has no amount as share premium till third quarter.
The bank’s paid up capital stands at Rs 8.08 arba with Rs 3.89 arba as its reserve. The Non-Performing Loan (NPL) has increased slightly to 1.86%.
The bank’s capital adequacy ratio is 11.76% which is near to NRB minimum requirements of 11%. This means NBB bank is shortage of capital fund and they are in process to issue debenture to increase its capital fund.
In the third quarter, the annualized EPS of the bank stands at Rs 18.82. The net worth per share stands at Rs 148.10 and qtr end PE ratio stands at 11.26 times.
Major Highlights:
* Figure are of Immediate Previous Year Ending (Audited)
* Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q3 end paid up capital.
|
Particulars (In Rs '000) |
Nepal Bangladesh Bank |
||
|---|---|---|---|
|
Q3 2075/76 |
Q3 2074/75 |
Difference |
|
|
Paid Up Capital |
8,088,299 |
8,088,299* |
0.00% |
|
Share Premium |
- |
- |
- |
|
Retained Earnings |
692,647 |
941,464* |
-26.43% |
|
Reserves |
3,197,997 |
2,707,785* |
18.10% |
|
Deposits |
56,061,582 |
48,052,953* |
16.67% |
|
Loans & Advances |
51,521,378 |
40,878,524* |
26.04% |
|
Net Interest Income |
2,111,316 |
1,398,505 |
50.97% |
|
Impairment Charge/(Reversal) |
-276,390 |
-399,514 |
- |
|
Operating Profit |
1,658,774 |
1,003,404 |
65.31% |
|
Personnel Expenses |
722,384 |
471,148 |
53.32% |
|
Profit/(Loss) for the Year |
1,141,479 |
738,091 |
54.65% |
|
Total Comprehensive Income |
1,092,795 |
853,833 |
27.99% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
602,583 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
11.76 |
14.15 |
-16.89% |
|
NPL |
1.86 |
1.77 |
5.08% |
|
CCD (as per NRB Directives) |
78.5 |
78.6 |
-0.13% |
|
Cost of Fund (%) |
7.66 |
7.98 |
-4.01% |
|
Base Rate (%) |
10.69 |
11.6 |
-7.84% |
|
Annualized EPS (In Rs.) |
18.82 |
12.17 |
54.65% |
|
Net Worth per Share (In Rs.) |
148.10 |
145.12 |
2.06% |
|
Qtr End PE Ratio (times) |
11.26 |
- |
- |
