Slow growth in core business propels Mega Bank profit decline by 20.53%

ShareSansar, November 14:

Mega Bank Limited (MEGA) reported 20.53 percent decline in its net profit for first quarter of the current fiscal year 2071/72.

Publishing the unaudited financial report for the first quarter today, the bank has stated that its net profit has decline to Rs 8.09 crore down from Rs 10.18 crore as compared to the corresponding quarter of the last fiscal year 2070/71, which is mainly due to decrease in the core business of the bank.

There is a meager growth in net interest income of the bank. The net interest income rose to Rs 19.70 crore up from Rs 18.54 crore as compared to the corresponding quarter of the last FY.

The bank has set aside Rs 2.48 crore for provision against losses.

The commercial bank has increased its deposits to Rs 18.97 arba as compared to the corresponding quarter, which was Rs 13.92 arba; likewise, the loan and advances reached to Rs 16.74 arba in the first quarter compared to Rs 12.99 arba in the corresponding quarter.

Mega is yet to propose the dividend to its shareholders from the Rs 31 crore plus profit it earned in 2070/71 FY.

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