Nepal Investment Bank reports decline in Net Profit by 4.77% to Rs 1.58 arba; NPL slightly decline to 2.75% in Q2

Thu, Jan 21, 2021 7:19 AM on Financial Analysis, Company Analysis, Latest,

Nepal Investment Bank Limited (NIB) has published its second-quarter report for the FY 2077/2078 with a slight decrease in Net Profit by 4.77%. The bank’s net profit declined to Rs. 1.58 arba in this quarter from Rs. 1.66 arba of FY 2076/2077.

The company’s operating profit decreased by 2.08% to Rs. 2.33 arba in second-quarter compared to the corresponding quarter of the previous year. The bank has Rs. 49.38 crores as distributable profit after P/L appropriation and regulatory requirements in this quarter.

The bank has a deposit from customers of Rs. 1.66 kharba. Similarly, loans and advances increased to Rs. 1.38 kharba. The net interest income of the bank decreased by 2.64% to Rs. 2.98 Arba compared to the corresponding quarter of the previous year.

The bank’s paid-up capital stood at Rs. 14.24 Arba with Rs. 15.30 Arba as its reserves and surplus. The Non-performing loan (NPL) slightly decreased to 2.75%.

The annualized EPS for the bank stood at Rs. 22.27. The Net worth per share stands at Rs. 207.39. The stock for the period traded at a P/E multiple of 21.78 times.

Nepal Investment Bank (NIB) Proposes 13% Bonus shares and 5.5% Cash Dividend for FY 2076/77 which is yet to be adjusted in the published Q2 report and book closure for the same is already done. Once proposed bonus shares adjusted then EPS, Networth per share, and PE will be changed.

Click here for the Q2 report:

Financial Highlights:

* Figure is of Immediate Previous Year Ending

Particulars (In Rs '000)

Nepal Investment Bank

Q2 2077/78

Q2 2076/77

Difference

Share Capital*

14,248,955

14,248,955

0.00%

Share Premium*

32,599

32,599

 

Retained Earnings*

3,116,224

2,622,386

18.83%

Reserves*

12,153,700

10,269,224

18.35%

Deposits from Customers*

166,356,763

166,362,126

0.00%

Loans & Advances to customers*

138,019,616

135,082,099

2.17%

Net Interest Income

2,982,429

3,063,355

-2.64%

Impairment Charge/(Reversal)

367,691

559,095

0.00%

Personnel Expenses

751,077

770,003

-2.46%

Operating Profit

2,331,310

2,380,880

-2.08%

Profit/(Loss) for the Year

1,586,609

1,666,112

-4.77%

Total Comprehensive Income

2,378,314

1,685,198

41.13%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments

493,838

 

 

Capital Adequacy Ratio (CAR)

13.98

13.37

4.56%

NPL

2.75

2.9

-5.17%

CCD (as per NRB Directives)

74.07

75.39

-1.75%

Cost of Fund (%)

4.69

6.37

-26.37%

Interest Rate Spread (%)

4.14

5.16

-19.77%

Base Rate (%)

6.56

8.53

-23.09%

Annualized EPS (In Rs.)

22.27

23.39

-4.77%

Net Worth per Share (In Rs.)

207.39

190.70

8.75%

Qtr End PE Ratio (times)

21.78

-

-

Qtr End Market Price

485

-

-