Prabhu Bank's profitability affected by Lower interest income and fee based income; Net Profit decreased by 23.36% in Q4
Sat, Aug 15, 2020 12:15 PM on Company Analysis, Latest,
Prabhu Bank Limited (PRVU) has published its fourth-quarter report for the FY 2076/2077 with a decrease in Net Profit by 23.36%. The bank's net profit has decreased from Rs. 1.78 Arba in the fourth quarter of FY 2075/2076 to Rs. 1.36 Arba in the fourth quarter of FY 2076/2077.
As per the Management, due to the lockdown enforced by the government around the nation for a prolonged period, their core business revenue has been affected which had a severe impact on its financial performance. However, the management has adopted strategies to expand small and medium enterprises loans with effective management of assets and liabilities.
The bank has Rs. 1.08 Arba as a distributable profit after P/L appropriation and regulatory requirements in the fourth quarter. This means PRVU can distribute around 10% (approx.) dividends from the earnings of FY 2076/2077 if other regulatory requirements are not required. However, as per the NRB circular, the interest amount which cannot be recovered in Q4, of FY 2076/2077 can be shown in this year’s balance sheet if it is recovered till Q1 of FY 2077/2078. So, the distributable amount might be slightly changed.
The bank’s deposit from customers increased by 21.81% to Rs. 1.28 Kharba whereas loans and advances to customers increased by 16.16% to Rs. 99.69 Arba till the fourth quarter. The Net Interest Income (core business income) of the bank has increased by a meager 5.63% to Rs. 4.64 Arba compared to the corresponding quarter of the previous year.
The bank’s paid-up capital stands at Rs. 10.31 Arba with Rs. 5.29 Arba in Reserve and surplus. The Non-performing loan (NPL) has decreased to 2.81% from 3.76%.
The earnings per share (EPS) of the Bank stood at Rs. 13.25 and Net worth per share stood at Rs. 151.29. The company traded at a P/E multiple of 16.67 times.
Major Highlights:
|
Particulars ('000) |
Prabhu Bank Limited |
||
|---|---|---|---|
|
Q4, 2076/2077 |
Q4,2075/2076 |
Difference |
|
|
Paid-up Capital |
10,315,507.00 |
8,892,675.00 |
16.00% |
|
Share Premium |
- |
- |
- |
|
Retained Earnings |
1,105,818.00 |
1,520,915.00 |
-27.29% |
|
Reserves |
4,185,496.00 |
3,907,078.00 |
7.13% |
|
Deposit from Customers |
128,494,354.00 |
105,488,506.00 |
21.81% |
|
Loans & Advances to Customers |
99,692,110.00 |
85,821,176.00 |
16.16% |
|
Net Interest Income |
4,645,815.00 |
4,398,098.00 |
5.63% |
|
Fee and Commission Income |
925,045.00 |
904,700.00 |
2.25% |
|
Impairment Charge/(Reversal) |
252,935.00 |
370,138.00 |
- |
|
Personnel Expenses |
2,090,155.00 |
1,747,761.00 |
19.59% |
|
Operating Profit |
2,092,681.00 |
2,270,732.00 |
-7.84% |
|
Profit/(Loss) for the Year |
1,366,974.00 |
1,783,593.00 |
-23.36% |
|
Total Comprehensive Income |
1,381,428.00 |
1,793,486.00 |
-22.98% |
|
Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments |
1,082,617.00 |
- |
- |
|
Capital Adequacy Ratio (CAR) (%) |
11.59% |
11.16% |
- |
|
Non-Performing Loan (NPL) |
2.81% |
3.76% |
- |
|
CCD (as per NRB Directive) |
66.96% |
76.62% |
- |
|
Cost of Fund (%) |
6.06% |
6.16% |
- |
|
Base Rate (%) |
8.32% |
9.36% |
- |
|
Annualized EPS (Rs.) |
13.25 |
20.05 |
-33.92% |
|
Net worth per share (Rs.) |
151.29 |
161.04 |
-6.05% |
|
Qtr End PE Ratio (Rs.) |
16.67 |
- |
- |
|
Qtr End Market Price |
221.00 |
- |
- |
|
Price to Book (PB Ratio) |
1.46 |
- |
- |
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