Standard Chartered Bank Nepal Limited (SCB) has shown meager progress in the fourth quarter of the FY 2073/74. Its net profit has surged by 6.92% as compared to last year’s report.
Publishing the unaudited quarterly report for the fourth quarter today, the commercial bank has net profit of Rs 1.38 arba in the Q4 of fiscal year 2073/74, up from Rs 1.29 arba in the corresponding quarter of fiscal year 2072/73.
SCB has a paid up capital of Rs 4 arba. Its reserve and surplus increased by massive 71.36 percent to Rs 8.15 arba in Q4 of the fiscal year 2073/74 from Rs 4.76 arba in corresponding quarter. The main reason behind massive increment of reserve of the bank is due to issuance of 25.58 lakh units FPO at Rs 1290 per share.
As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, SCB will need to issue a further capital hike of around Rs 4 arba (around 100%). SCB had distributed 33.33% bonus shares from the profit it had earned in the FY 2072/73.
The commercial bank’s net interest income surged to Rs 2.19 arba in the fourth quarter compared to Rs 1.84 arba of the corresponding quarter of the previous fiscal year.
SCB has collected Rs. 63.87 arba in deposits and mobilized Rs 39.20 arba in loans in the fourth quarter of 2073/74.
The bank has an operating profit of Rs 1.92 arba in Q4 compared to Rs 1.70 crore in the corresponding quarter of the previous fiscal year.
The bank’s non-performing loan (NPL) has declined to 0.19 percent in Q4 from 0.32 percent in the same quarter of previous year.
SCB’s earning per share (EPS) has declined to Rs 34.50 in Q4 from Rs 45.96 by 24.93%. Likewise, its net worth per share stands at Rs 303.68 and P/E ratio is 66.52 times.
SCB EPS would drastically fall once it will make its paid up capital to Rs 8 arba.
Its LTP stood at Rs 2320 as of August 13, 2017.
Similarly, another leading commercial bank, Nepal Investment Bank Limited (NIB) has shown impressive progress in the fourth quarter of the FY 2073/74 by increasing its profit by 23.88% despite of distributing 20% bonus shares to its shareholders from the profit it had earned in the FY 2072/73.
Publishing the unaudited quarterly report for the fourth quarter today, the commercial bank has net profit of Rs. 3.16 arba in the Q4 of fiscal year 2073/74, up from Rs 2.55 arba in the corresponding quarter of fiscal year 2072/73.
NIB has a paid up capital of Rs 9.24 arba which is highest capital of the commercial bank in the whole banking industry and the first bank to meet NRB’s capital requirement before deadline. Its reserve and surplus increased by impressive 53.98 percent to Rs 11.78 arba in Q4 of the fiscal year 2073/74 from Rs 7.65 arba in corresponding quarter.
The commercial bank’s net interest income surged to Rs 4.78 arba in the fourth quarter compared to Rs 3.92 arba of the corresponding quarter of the previous fiscal year.
NIB has collected Rs 1.25 kharba in deposits and mobilized Rs 1.06 kharba in loans in the fourth quarter of the FY 2073/74.
The bank has an operating profit of Rs 4.80 arba in Q4 compared to Rs 3.69 arba in the corresponding quarter of the previous fiscal year.
The bank’s non-performing loan (NPL) has increased to 0.83 percent in Q4 from 0.68 percent in the same quarter of previous year.
NIB’s earning per share (EPS) has inclined to Rs 34.20 in Q4 from Rs 16.73. Likewise, its net worth per share stands at Rs 227.49 and P/E ratio is 22.52 times.
NIB had recently acquired National level --Ace Development Bank at 100 : 41 ratio and started joint transaction from 13th July, 2017.
Its LTP stand at Rs 769 as of August 13, 2017.
Major Highlights:
|
Standard Chartered Bank Nepal Ltd. |
Nepal Investment Bank Limited |
| Indicators (Rs in "000") |
FY 2073/74 Q4 |
FY 2072/73 Q4 |
Growth (%) |
FY 2073/74 Q4 |
FY 2072/73 Q4 |
Growth (%) |
| Paid Up Capital |
4,005,715 |
2,812,426 |
42.43 |
9,240,379 |
8,706,612 |
6.13 |
| Reserve and Surplus |
8,158,836 |
4,761,090 |
71.36 |
11,780,179 |
7,650,217 |
53.98 |
| Deposits |
63,872,885 |
55,727,178 |
14.62 |
125,669,355 |
108,626,642 |
15.69 |
| Loans and Advances |
39,203,690 |
31,697,345 |
23.68 |
106,683,877 |
87,009,792 |
22.61 |
| Net Interest Income |
2,195,431 |
1,849,878 |
18.68 |
4,784,147 |
3,921,105 |
22.01 |
| Provision |
361,729 |
260,751 |
38.73 |
438,098 |
436,465 |
0.37 |
| Write Back |
229,978 |
257,974 |
(10.85) |
96,120 |
358,690 |
(73.20) |
| Operating Profit |
1,923,546 |
1,701,248 |
13.07 |
4,801,970 |
3,699,689 |
29.79 |
| Net Profit |
1,381,953 |
1,292,495 |
6.92 |
3,160,069 |
2,550,884 |
23.88 |
| Capital Adequacy Ratio (%) |
22.04 |
16.49 |
33.66 |
14.47 |
14.92 |
(3.02) |
| NPL (%) |
0.19 |
0.32 |
(40.63) |
0.83 |
0.68 |
22.06 |
| Cost of Funds (%) |
3.06 |
1.25 |
144.80 |
5.84 |
2.65 |
120.38 |
| CD Ratio (as per NRB) (%) |
72.34 |
70.31 |
2.89 |
77.63 |
76.78 |
1.11 |
| Base rate |
6.47 |
4.47 |
44.74 |
8.36 |
5.08 |
64.57 |
| EPS (Annualized) |
34.50 |
45.96 |
(24.93) |
34.20 |
29.30 |
16.73 |
| Net Worth Per Share |
303.68 |
269.29 |
12.77 |
227.49 |
187.87 |
21.09 |
| P/E Ratio |
66.52 |
- |
|
22.52 |
- |
|
