Sanima Bank's profit crosses Rs 2 arba in Q4 with EPS of Rs 28.04; has capacity to distribute maximum 20% dividend this year

Sanima Bank Limited (SANIMA) has published a satisfactory growth of 32.16% in net profit of the fourth quarter of last FY 2075/76.

The bank’s profit has increased from Rs 1.69 arba in the fourth quarter of the fiscal year 2074/75 to Rs 2.24 arba in the fourth quarter of the fiscal year 2075/76.

The bank’s deposit from customers rises by 14.80% to Rs 89.37 arba and at the same time loan and advances to customers rises by 20.20% to Rs 81.24 arba in till the fourth quarter. The net interest income of the bank has also increased by 35.97% to Rs 4.10 arba from Rs 3.01 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8 arba with Rs 3.89 arba as its reserve and surplus account.

In the same quarter, the bank has Rs 1.62 arba as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. This means Sanima Bank can distribute maximum 20% (approx.) dividend if other regulatory reserve requirements are not required. 

The existing capital adequacy of Sanima Bank is 13.11% which is above NRB requirements of 11% minimum. This suggests that this year expected dividend priority will be mix of bonus and cash. 

The Non-Performing Loan (NPL) has also slightly decreased to 0.08% from 0.03%.

In the fourth quarter, the EPS of the bank stands at Rs 28.04. The net worth per share stands at Rs 148.73 and PE ratio stands at 12.41 times.

The earning yields of the company is 8.05% (risky return) which is still below risk free return (if we considered ongoing debenture return of 10%).

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Major Highlights:

 * Figure are of Immediate Previous Year Ending (Audited)

* 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 Q4 end paid up capital.