Rise in Impairment Charges Affects the Profitability of Excel Development Bank for Q2; Net Profit Declines by 50.54%
Tue, Jan 24, 2023 11:11 AM on Latest, Financial Analysis, Company Analysis,
Excel Development Bank Limited (EDBL) has published its second-quarter report for the FY 2079/2080 with a decline in Net Profit by 50.54%. The bank’s Net Profit decreased from Rs. 4.70 crore in the second quarter of the fiscal year 2078/2079 to Rs. 2.32 crore in the second quarter of fiscal year 2079/2080.
EDBL also reported a negative distributable profit of Rs. 10.28 crores after all the P/L Appropriation and Regulatory Adjustments. The company reported an incline in impairment charges (provision for possible losses) worth Rs. 8.85 crores which have also affected the profitability of the bank for this period. The personnel expenses also increased by 15.91% in this quarter.
On the other hand, the bank’s deposit from customers rose by 4.11% to Rs. 12.23 Arba whereas loans and advances have decreased slightly by 0.11% to Rs. 10.22 Arba in the Q2 of FY 2079/2080.
Likewise, The paid-up capital of bank stands at Rs. 1.24 Arba, and the reserves stood at Rs. 46.11 Crores.
In Q2, 2079/2080, the EPS of the bank stands at Rs. 3.72. The net worth per share stood at Rs. 133.21.
Major financial highlights
| Particulars (In Rs '000) | Excel Development Bank Limited | ||
|---|---|---|---|
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,249,694.47 | 1,151,792.14 | 8.50% |
| Share Premium | 9,545.61 | ||
| Retained Earnings | -46,093.27 | 150,240.14 | |
| Reserves | 461,132.75 | 350,532.75 | 31.55% |
| Deposits | 12,233,118.83 | 11,750,563.82 | 4.11% |
| Loans & Advances | 10,222,710.78 | 10,233,641.19 | -0.11% |
| Net Interest Income | 267,636.39 | 204,468.85 | 30.89% |
| Personnel Expenses | 89,839.79 | 77,506.55 | 15.91% |
| Impairment Charges | 88,502.39 | 41,423.31 | 113.65% |
| Operating Profit | 60,286.43 | 67,185.09 | -10.27% |
| Net Profit | 23,262.93 | 47,029.56 | -50.54% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | -102,823.92 | ||
| Capital Adequacy (%) | 13.25 | 13.64 | -2.86% |
| Cost of Fund (%) | 9.60 | 6.87 | 39.74% |
| EPS (In Rs.) | 3.72 | 8.17 | -54.41% |
| Net Worth per Share (In Rs.) | 133.21 | 144.31 | -7.69% |
| Qtr end PE Ratio (times) | 98.31 | - | - |
| Qtr End Market Price | 366 | - | - |
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