Nepal Bank net profit remains stagnant in Q4; has 20% dividend distribution capacity from FY 2076/77 distributable profit
Sun, Aug 9, 2020 12:42 PM on Company Analysis, Latest,
Nepal Bank Limited (NBL) has published its fourth-quarter report for the FY 2076/2077 with a decrease in Net Profit by meager 1.55%. The bank’s net profit has declined from Rs. 2.59 Arba in the fourth quarter of the FY 2075/2076 to Rs. 2.55 Arba in the fourth quarter of FY 2076/2077.
The company’s operating profit has decreased by 20.92% to Rs. 2.19 Arba in the fourth quarter in FY 2076/2077 compared to the corresponding quarter of the previous year. The bank has Rs. 2.21 Arba as a Distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means NBL can distribute around 20% (approx.) dividends from the earnings of FY 2076/77 if other regulatory requirements are not required.
The bank’s deposit increased by 21.26% to Rs. 1.42 Kharba whereas loans and advances increased by 13.16% to Rs. 1.04 Kharba till the fourth quarter. The net interest income of the bank has decreased by 9.21% to Rs.5.61 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 11.28 Arba with Rs. 18.89 Arba as its reserves and surplus. The Non-performing loan (NPL) decreased to 2.59%.
EPS of the bank in the fourth quarter of FY 2076/2077 stood at Rs. 22.66. The Net worth per share stands at Rs. 267.50 and Qtr End PE ratio stands at 10.99 times.
Major Highlights:
|
Particulars |
Nepal Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
11,282,820,200 |
9,811,148,000 |
15.00% |
|
Share Premium |
1,788,700,929 |
3,262,810,756 |
-45.18% |
|
Retained Earnings |
4,125,071,768 |
2,895,693,022 |
42.46% |
|
Reserves |
12,985,435,806 |
13,311,684,737 |
-2.45% |
|
Deposit from Customers |
142,114,284,983 |
117,200,788,938 |
21.26% |
|
Loans & Advances to Customers |
104,588,242,821 |
92,421,637,259 |
13.16% |
|
Net Interest Income |
5,618,947,941 |
6,189,542,679 |
-9.21% |
|
Fee and Commission Income |
788,512,514 |
1,039,339,829 |
-24.13% |
|
Impairment Charge/(Reversal) |
545,162,536 |
477,102,823 |
14.27% |
|
Personnel Expenses |
2,199,643,448 |
2,077,398,273 |
5.88% |
|
Operating Profit |
3,566,432,550 |
4,510,047,966 |
-20.92% |
|
Profit/(Loss) for the Year |
2,556,439,446 |
2,596,736,045 |
-1.55% |
|
Total Comprehensive Income |
1,910,876,024 |
1,406,807,594 |
35.83% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
2,210,493,546 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
16.68% |
16.80% |
- |
|
Non-Performing Loan (NPL) |
2.59% |
2.64% |
- |
|
CCD (as per NRB Directive) |
65.78% |
70.17% |
- |
|
Cost of Fund (%) |
4.19% |
5.50% |
- |
|
Base Rate (%) |
6.99% |
7.98% |
- |
|
Annualized EPS (Rs.) |
22.66 |
- |
- |
|
Net worth per share (Rs.) |
267.50 |
- |
- |
|
Qtr End PE Ratio (Rs.) |
10.99 |
- |
- |
|
Qtr End Market Price |
249.00 |
- |
- |
|
Price to Book (PB Ratio) |
0.93 |
- |
- |
.png)
