Prime Commercial Bank Reports 28.49% Rise in Net Profit to Rs. 4.11 Arba in Q4 FY 2082/83; Impairment Charges Down 36.06%

Prime Commercial Bank Limited (PCBL) has reported a 28.49% increase in net profit in the fourth quarter of FY 2082/83, earning Rs. 4.11 Arba compared to Rs. 3.20 Arba in the corresponding quarter of the previous fiscal year.

The bank’s paid-up capital increased by 8% to Rs. 20.95 Arba from Rs. 19.40 Arba. Retained earnings rose 10.05% to Rs. 1.91 Arba, while reserves increased by 18.90% to Rs. 13.98 Arba.

Prime Commercial Bank’s deposits grew 5.46% to Rs. 2.78 Kharba from Rs. 2.63 Kharba a year earlier. Loans and advances increased 8.29% to Rs. 2.26 Kharba from Rs. 2.09 Kharba.

Net interest income rose 3.30% to Rs. 9.21 Arba, while personnel expenses increased 6.80% to Rs. 2.45 Arba. Meanwhile, impairment charges declined by 36.06% to Rs. 1.74 Arba from Rs. 2.72 Arba.

The bank’s operating profit surged 26.94% to Rs. 6.83 Arba from Rs. 5.38 Arba in the previous fiscal year. The capital adequacy ratio improved to 12.87% from 11.33%, indicating a stronger capital position.

However, the bank’s non-performing loan (NPL) ratio increased to 6.69% from 5.81%, reflecting a rise in non-performing assets.

Prime Commercial Bank’s cost of funds declined significantly by 26.87% to 3.81% from 5.21%. The bank’s earnings per share (EPS) increased 18.97% to Rs. 19.63 from Rs. 16.50.

Net worth per share also increased 3.71% to Rs. 175.80 from Rs. 169.52.

At the end of the review quarter, the bank’s share price stood at Rs. 239.90, with its price-to-earnings (P/E) ratio recorded at 12.22 times.

Report:

Major Financial Highlights:

Particulars (In Rs '000) Prime Commercial Bank Limited
Q4 2082/83 Q4 2081/82 Difference
Paid Up Capital 20,954,781.77 19,402,575.72 8.00%
Share Premium 0.00 0.00  
Retained Earnings 1,907,412.91 1,733,299.52 10.05%
Reserves 13,976,198.68 11,754,603.02 18.90%
Deposit 277,743,614.74 263,360,694.62 5.46%
Loans & Advances  226,441,101.96 209,099,209.92 8.29%
Net Interest Income 9,212,693.62 8,918,162.53 3.30%
Personnel Expenses 2,449,910.62 2,293,842.00 6.80%
Impairment Charges 1,739,643.64 2,720,743.76 -36.06%
Operating Profit 6,833,055.45 5,382,789.88 26.94%
Net Profit 4,112,568.80 3,200,758.96 28.49%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  1,907,412.91 1,733,299.52 -
Capital Adequacy (%) 12.87 11.33 13.59%
NPL (%) 6.69 5.81  
Cost of Fund (%) 3.81 5.21 -26.87%
EPS  (In Rs.) 19.63 16.50 18.97%
Net Worth per Share (In Rs.) 175.80 169.52 3.71%
Qtr end PE Ratio (times) 12.22 - -
Qtr End Market Price 239.9 - -