Nepal Bank earns Rs 2.24 arba till Q3; has capacity to distribute 17% dividend from retained earnings and 33% dividend from share premium
Mon, Apr 29, 2019 6:40 AM on Financial Analysis, Stock Market,
Nepal Bank Limited (NBL) has published its third quarter report for the FY 2075/76 with 12.55% decline in net profit.
The bank’s profit has decreased from Rs 2.56 arba in the third quarter of the fiscal year 2074/75 to Rs 2.24 arba in the third quarter of the fiscal year 2075/76.
In the same quarter, the bank has Rs 1.62 arba 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 2.16 arba (approx.) as distributable profit. Since NBL retained earnings account is negative by Rs 43.71 crore, only Rs 1.72 (approx) will be available for distribution. This means NBL can distribute around 17% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory requirements are not required. Also NBL has Rs 3.26 arba as share premium this means NBL can distribute 33% (approx.) dividend from share premium.
The bank’s deposit rises by 6.12% to Rs 1.05 kharba whereas loans and advances have also increased by 16.72% to Rs 88.19 arba in the third quarter. The net interest income (core business income) of the bank has also increased by 3.74% to Rs 4.72 arba from Rs 4.55 arba of the corresponding quarter.
The bank’s paid up capital stands at Rs 9.81 arba with Rs 20.06 arba as its reserve. The Non-Performing Loan (NPL) has decline slightly to 2.71%.
In the third quarter, the annualized EPS of the bank stands at Rs 30.52. The net worth per share stands at Rs 304.47 and PE ratio stands at 9.73 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 Bank |
||
|---|---|---|---|
|
Q3 2075/76 |
Q3 2074/75 |
Difference |
|
|
Paid Up Capital |
9,811,148 |
8,042,662* |
21.99% |
|
Reserve & Surplus |
20,060,487 |
14,929,332* |
34.37% |
|
Deposits |
105,632,627 |
99,540,726* |
6.12% |
|
Loans & Advances |
88,191,221 |
75,556,511* |
16.72% |
|
Net Interest Income |
4,725,255 |
4,555,107 |
3.74% |
|
Impairment Charge/(Reversal) |
-425,764 |
55,306 |
- |
|
Operating Profit |
3,123,362 |
3,616,608 |
-13.64% |
|
Profit/(Loss) for the Year |
2,245,577 |
2,567,728 |
-12.55% |
|
Total Comprehensive Income |
2,001,181 |
2,567,728 |
-22.06% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
1,621,696 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
17.02 |
18.02 |
-5.55% |
|
NPL |
2.71 |
2.91 |
-6.87% |
|
CCD (as per NRB Directives) |
74.32 |
76.48 |
-2.82% |
|
Cost of Fund (%) |
4.11 |
2.97 |
38.38% |
|
Base Rate (%) |
6.92 |
7.11 |
-2.67% |
|
Annualized EPS (In Rs.) |
30.52 |
42.57 |
-28.31% |
|
Net Worth per Share (In Rs.) |
304.47 |
285.63 |
6.60% |
|
PE Ratio (times) |
9.73 |
- |
- |
