NMB Bank financials continues to impress with 47.40% rise in net profit; FY 2075/76 dividend remains to be adjusted in Q2 report

Sun, Feb 9, 2020 8:40 AM on Financial Analysis, Stock Market,
NMB Bank f...

NMB Bank Limited (NMB) has published its second quarter report for the FY 2076/77 today with an outstanding 47.40% rise in net profit. NMB Bank was merged with OM Development Bank earlier this fiscal year and the growth in net profit in Q2 is also due to inclusion of OM Development Bank financials.

The bank’s profit has increased from Rs 1.10 arba in the second quarter of the fiscal year 2075/76 to Rs 1.63 arba in the second quarter of the fiscal year 2076/77. In the same quarter, the bank has Rs 1.11 arba as distributable profit after PL Appropriation and Regulatory Adjustments.

The bank’s deposit from customers has increased by 29.15% (compared to immediate previous year ending) to Rs 1.26 kharba and loans and advances to customers increased by 28.43% (compared to immediate previous year ending) to Rs 1.13 kharba in the second quarter. The net interest income (core business income) of the bank has increased by 36.34% to Rs 2.73 arba from Rs 2 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 11.52 arba with Rs 10.20 arba as its reserve and surplus. The Non-performing loan stands at 1.96%.

NMB bank proposes 35% dividend for FY 2075/76; 21% bonus and 14% cash dividend and this dividend is already endorsed by AGM but still remains to be adjusted in the published Q2 report.

In the second quarter, the annualized EPS of the bank stands at Rs 28.38. The net worth per share stands at Rs 188.55 and qtr end PE ratio stands at 12.65 times.

Click here for Q2 report:

Major Highlights:

* 2075/76 figure are of Immediate Previous Year Ending.

* Published EPS, Networth and PE may differ. As per NFRS standard, Weighted average number of shares is taken while calculating EPS, Networth and PE but we have taken number of shares as per Q2 end paid up capital.

Particulars (In Rs '000)

NMB Bank

Q2 2076/77

Q2 2075/76

Difference

Paid Up Capital*

11,529,742

9,618,163

19.87%

Share Premium*

2,541,413

2,512,799

 

Retained Earnings*

2,456,502

1,780,327

37.98%

Reserves*

5,211,597

3,491,726

49.26%

Deposits from Customers*

126,429,059

97,892,302

29.15%

Loans & Advances to Customers*

113,637,053

88,485,031

28.43%

Net Interest Income

2,734,390

2,005,533

36.34%

Fee and Commission Income

528,485

481,149

9.84%

Impairment Charge/(Reversal)

605,215

91,428

-

Personnel Expenses

888,204

679,914

30.63%

Operating Profit

1,514,897

1,561,643

-2.99%

Profit/(Loss) for the Year

1,636,076

1,109,942

47.40%

Total Comprehensive Income

1,663,180

1,086,875

53.02%

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

1,116,525

-

-

Capital Adequacy Ratio (CAR)

16.05

15.44

3.95%

NPL

1.96

0.76

157.89%

CCD (as per NRB Directives)

77.55

78.95

-1.77%

Cost of Fund (%)

7.7

7.32

5.19%

Base Rate (%)

10.12

10.11

0.10%

Annualized EPS (In Rs.)

28.38

23.08

22.96%

Net Worth per Share (In Rs.)

188.55

180.94

4.21%

Qtr End PE Ratio (times)

12.65

-

-

Qtr End Market Price*

359

-

-

Price to Book (PB Ratio)

1.90

-

-