Nepal SBI Bank Posts Rs. 2.04 Arba Net Profit in Q4 End, FY 2082/83; EPS at Rs. 18.04 and PE Ratio at 21.78 Times

Nepal SBI Bank Limited (SBI) posted a net profit of Rs. 2.04 Arba in the fourth quarter of FY 2082/83, marking a 12.89% increase from Rs. 1.81 Arba reported in the same quarter of the previous fiscal year. A reduction in impairment charges mainly supported the growth in profitability.

The bank’s earnings per share (EPS) rose to Rs. 18.04 from Rs. 16.62 a year earlier. Based on the quarter-end market price of Rs. 392.9 per share, the bank’s price-to-earnings (P/E) ratio stood at 21.78 times.

The bank’s paid-up capital increased to Rs. 11.33 Arba during the fiscal year, compared to Rs. 10.89 Arba in the previous fiscal year. Retained earnings grew 4.55% year-on-year to Rs. 1.25 Arba, indicating an increase in accumulated distributable earnings. Similarly, the bank’s reserves rose 12.03% to Rs. 9.48 Arba.

On the business front, customer deposits increased 6.62% to Rs. 2.12 Kharba, while loans and advances grew 8.23% to Rs. 1.46 Kharba. The bank also recorded an improvement in its funding efficiency, with the cost of funds declining to 4.06% from 5.18% in the corresponding period last year.

The bank’s net interest income increased marginally by 1.30% to Rs. 5.33 Arba. However, personnel expenses climbed 10.16% to Rs. 2.18 Arba. Meanwhile, impairment charges declined 8.77% to Rs. 94.01 Crores.

Despite the lower impairment charges, the bank’s operating profit decreased 30.20% year-on-year to Rs. 1.91 Arba.

In terms of asset quality, the bank’s non-performing loan (NPL) ratio stood at 2.92%, compared to 3.35% in the previous year.

The capital adequacy ratio stood at 13.74%, compared to 12.75% a year earlier. Meanwhile, net worth per share increased to Rs. 194.73 from Rs. 188.67 in the previous year.

Report:

Major Financial Highlights: