Nepal Investment Mega Bank Reports 2522.47% Surge in Q1 Net Profit to Rs. 1.18 Arba

Nepal Investment Mega Bank Limited (NIMB) has reported a remarkable 2522.47% surge in net profit for the first quarter of FY 2083/84, reaching Rs. 1.18 Arba compared to Rs. 4.51 Crores in the corresponding quarter of the previous fiscal year. The bank's paid-up capital remained unchanged at Rs. 34.13 Arba, while reserves increased by 3.01% to Rs. 39.59 Arba. Retained earnings stood at negative Rs. 5.16 Arba.

During the quarter, total deposits increased by 2.69% to Rs. 5.41 Kharba, while loans and advances grew marginally by 0.33% to Rs. 3.22 Kharba. Net Interest Income increased by 0.88% to Rs. 3.27 Arba. Personnel expenses rose by 22.29% to Rs. 95.01 Crores, while impairment charges declined sharply by 60.81% to Rs. 1.10 Arba from Rs. 2.80 Arba in the corresponding quarter.

The significant reduction in impairment charges contributed to a substantial improvement in operating profit, which surged by 1024.95% to Rs. 1.69 Arba from Rs. 15.03 Crores in the corresponding period.

The bank's distributable profit after profit/loss appropriation and regulatory adjustments stood at negative Rs. 5.16 Arba. Its capital adequacy ratio stood at 12.17%, while the Non-Performing Loan (NPL) ratio increased to 8.87% from 6.63%. Meanwhile, the cost of funds declined significantly to 3.07% from 3.92%.

NIMB's Earnings Per Share (EPS) stood at Rs. 13.85, compared to Rs. 0.53 in the corresponding quarter, representing a 2522.47% increase. Net worth per share increased by 1.61% to Rs. 200.88 from Rs. 197.71. The bank's quarter-end PE ratio stood at 14.89 times, while its quarter-end market price was Rs. 206.20 per share.

Report:

* Figures are of Immediate Previous Year Quarter Ending

Major Highlights:

Particulars (In Rs '000) Nepal Investment Mega Bank Limited
Q1 2083/84 Q1 2082/83 Difference
Paid Up Capital 34,128,595.00 34,128,595.00* 0.00%
Share Premium 0.00 0.00  
Retained Earnings -5,161,630.00 -5,087,553.00* 1.46%
Reserves 39,592,075.00 38,433,468.00* 3.01%
Deposit 540,796,906.00 526,632,048.00* 2.69%
Loans & Advances  322,412,019.00 321,342,058.00* 0.33%
Net Interest Income 3,271,685.00 3,243,125.00 0.88%
Personnel Expenses -950,085.00 -776,930.00 22.29%
Impairment Charges -1,097,393.00 -2,800,431.00 -60.81%
Operating Profit 1,690,705.00 150,292.00 1024.95%
Net Profit 1,181,421.00 45,050.00 2522.47%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  -5,161,630.00 -1,169,440.00 -
Capital Adequacy (%) 12.17 13.48 -9.72%
NPL (%) 8.87 6.63  
Cost of Fund (%) 3.07 3.92 -21.68%
EPS  (In Rs.) 13.85 0.53 2522.47%
Net Worth per Share (In Rs.) 200.88 197.71 1.61%
Qtr end PE Ratio (times) 14.89 - -
Qtr End Market Price 206.2 - -