Nepal Bank earns profit of Rs 3.39 arba in FY 2074/75 posting an EPS of Rs 42; Accumulated loss completely wiped out

Nepal Bank Limited (NBL) has posted a net profit increase of 9.04% till the end of fiscal year 2074/75.

As per the unaudited report for the 4th quarter of FY 2074/75 published today, the commercial bank has stated that its net profit increased to Rs 3.39 arba, up from Rs 3.11 arba in the corresponding quarter of the previous fiscal year 2073/74.

Its deposit collection has reached to Rs 99.83 arba where the bank has floated loans of Rs 93.94 arba.

It has paid-up capital of Rs 8.04 arba and has accumulated Rs 6.80 arba in various reserves and funds. As per the audited report until the end of last fiscal year 2073/74, it had accrued loss of Rs 2.03 arba. After allocating 20% of its current net profit in general reserve, Nepal Bank will be left with around Rs 2.70 arba which will completely wipe out its accumulated loss of Rs 2.03 arba. As such, around Rs 60 crore will be surplus which can be used to distribute dividend. 

Its NPL is still high at 2.90%, but is improving from corresponding period's 3.32%.

Its Earning per Share (EPS) now stands stands at Rs 42.27 where net worth per share stands at Rs 184.59. It has P/E ratio of 6.85 times.

Nepal Bank has been floating 1,76,84,858 units FPO shares to the general public from Asadh 15 to Shrawan 13, 2075 for Rs 280 per share. The issue has been subscribed by around 8.50% till yesterday.

Major financial highlights:

Also See: Nepal Bank FPO at 280 can be the best opportunity for value investors to add some share in their portfolio (Exclusive company analysis)