Nepal Investment Bank profit growth remains almost stagnant, EPS Rs. 47 plus

ShareSansar, August 14:

Nepal Investment Bank Ltd (NIB) has posted a mere 1 % profit growth in the fourth quarter of the last fiscal year 2070/71.

According to the unaudited financial quarterly report of the bank published today, its net profit increased to Rs 1.95 arba in the last fiscal year, up from Rs 1.91 arba in the corresponding period of the previous fiscal year 2069/70. While the net profit of the bank dropped to Rs 2.99 arba from Rs 3.09 arba, the bank has earned a good sum of money from other sources like fees, commission, foreign exchange gain and other operating income. The total operating income of the bank rose to Rs 4.15 arba from Rs 4 arba in the previous year.

The bank was also able to write back Rs 30.99 crore from the amount set aside earlier for the possible loss. It also provisioned Rs 43.05 crore in the last fiscal year for the possible loss.

The bank mobilized Rs 73.83 arba in deposit and Rs 53.46 arba in loan, up from Rs 62.43 arba in deposit and Rs 47.7 arba in loan in the previous year.

Non-performing loan (NPL) of the bank also came down to 1.68 percent from 1.91 percent in the previous year quarter ending.

NIB’s EPS stands at Rs 47.04, while its P/E ratio stands at 20.41 times and its net worth per share at Rs 216.57.

The bank, however, net interest spread rate was at 5.41 percent. Nepal Rastra Bank (NRB) has already directed all the commercial banks to maintain the net interest spread rate below 5 percent from this fiscal year 2071/72.