Prudential Finance posts 122% profit rise in Q4 due to massive write back; Fewa reports 13%

ShareSansar, August 7:

Fuelled by a massive write back of the amount provisioned for possible loss, Prudential Finance Limited has reported an impressive 122 percent growth in net profit in the last fiscal year 2070/71.

According to the unaudited financial report for the fourth quarter published today, the finance company headquartered in Kathmandu has stated that its net profit has risen to Rs 13.07 crore up from Rs 5.90 crore at the end of the previous fiscal year 2069/70.

Though Prudential’s net interest income has dropped to Rs 4.20 crore at the end of the fourth quarter from Rs 5.16 crore at the end of the previous quarter, it still managed to pull off the profit growth due to Rs 23.11 crore it succeeded to write back from the amount it had provisioned for possible loss.

Its deposit mobilization grew to Rs 7.59 arba from Rs 6.26 arba and the loan mobilization increased to Rs 6.73 arba from Rs 5.37 arba.

However, its NPL has risen slightly from 2.29 percent to 2.59 percent by the fourth quarter end.

Meanwhile, Few Finance Limited has reported 13 percent rise in net profit by the end of the fourth quarter.

Fewa’s net profit has risen to Rs 9.33 crore, up from Rs 8.26 crore, and it mobilized Rs 3.97 arba in deposit and Rs 3.33 arba in loan in the fourth quarter as compared to Rs 3.24 arba in deposit and Rs 2.81 arba in loan at the end of the corresponding quarter.

Its profit was largely stemmed by Rs 1.12 crore it had to provision for possible loss.

Fewa’s NPL however remains more or less stable at 0.69 percent, while it stood at 0.67 percent at the end of the previous fiscal year.

Its EPS (annualized) is now priced at Rs 28.25, P/E ratio at 10.48 times and net worth per share at Rs 157.66.