Slow business growth and high impairment charge result 15.66% fall in net profit of Nepal Investment Bank; EPS stands at Rs 23.43
Fri, Feb 7, 2020 7:47 AM on Financial Analysis, Latest,
Nepal Investment Bank Limited (NIB) has published its second quarter report for the FY 2076/77 today with decline in net profit by 15.66%. The bank’s profit has decreased from Rs 1.97 arba in the second quarter of the fiscal year 2075/76 to Rs 1.66 arba in the second quarter of the fiscal year 2076/77. The fall in net profit is mainly due decline in net interest income and high impairment charges.
In the same quarter, the bank has Rs 84.34 crore as distributable profit after PL Appropriation and Regulatory Adjustments.
The bank’s deposit from customers has increased by 0.38% (compared to immediate previous year ending) to Rs 1.49 kharba and loans and advances to customers increased by 7.93% (compared to immediate previous year ending) to Rs 1.32 kharba till the second quarter. The net interest income (core business income) of the bank has declined by 7.54% to Rs 3.06 arba from Rs 3.31 arba of the corresponding quarter.
The bank’s paid up capital stands at Rs 14.22 arba with Rs 11.94 arba as its reserve and surplus. The Non-performing loan stands at 2.9%.
In the second quarter, the annualized EPS of the bank stands at Rs 23.43. The net worth per share stands at Rs 184.03 and qtr end PE ratio stands at 17.28 times.
Nepal Investment Bank proposes 10.5% bonus and 8.5% cash dividend; for last fiscal year and this dividend is already endorsed by AGM and adjusted in published Q2 report.
Major Highlights:
* 2075/76 figure are of Immediate Previous Year Ending.
|
Particulars (In Rs '000) |
Nepal Investment Bank |
||
|---|---|---|---|
|
Q2 2076/77 |
Q2 2075/76 |
Difference |
|
|
Paid Up Capital* |
14,221,073 |
12,869,749 |
10.50% |
|
Share Premium* |
32,599 |
|
|
|
Retained Earnings* |
1,814,146 |
2,064,662 |
-12.13% |
|
Reserves* |
10,102,648 |
10,539,136 |
-4.14% |
|
Deposits from Customers* |
149,952,742 |
149,392,282 |
0.38% |
|
Loans & Advances to Customers* |
132,603,835 |
122,866,554 |
7.93% |
|
Net Interest Income |
3,063,355 |
3,313,235 |
-7.54% |
|
Fee and Commission Income |
728,661 |
676,323 |
7.74% |
|
Impairment Charge/(Reversal) |
559,095 |
291,925 |
- |
|
Personnel Expenses |
770,003 |
790,397 |
-2.58% |
|
Operating Profit |
2,380,880 |
2,843,763 |
-16.28% |
|
Profit/(Loss) for the Year |
1,666,112 |
1,975,572 |
-15.66% |
|
Total Comprehensive Income |
1,685,198 |
2,010,220 |
-16.17% |
|
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments |
843,412 |
- |
- |
|
Capital Adequacy Ratio (CAR) |
13.37 |
11.90 |
12.35% |
|
NPL |
2.9 |
2.04 |
42.16% |
|
CCD (as per NRB Directives) |
75.39 |
76.43 |
-1.36% |
|
Cost of Fund (%) |
6.37 |
6.59 |
-3.34% |
|
Base Rate (%) |
8.53 |
8.96 |
-4.80% |
|
Annualized EPS (In Rs.) |
23.43 |
30.70 |
-23.68% |
|
Net Worth per Share (In Rs.) |
184.03 |
197.93 |
-7.03% |
|
Qtr End PE Ratio (times) |
17.28 |
- |
- |
|
Qtr End Market Price* |
405 |
- |
- |
|
Price to Book (PB Ratio) |
2.20 |
- |
- |
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