Standard Chartered Bank earns Rs 74 crore in Q2; EPS down after bonus capitalization

Standard Chartered Bank Nepal Limited (SCB) has posted a net profit rise of 21% in the second quarter of the ongoing fiscal year 2073/74. As per the unaudited quarterly report published by the commercial bank today, its net profit at the end of Q2 stands at Rs 74.01 crore, up from Rs 61.20 crore in the corresponding quarter last year. Its deposit base has increased from Rs 57.88 arba last year to Rs 61.98 arba in this period. Likewise, its loans have increased from Rs 25.77 arba to Rs 35.10 arba. Its CCD ratio now stands at 77.86%, up significantly from 60.91% last year. As of Q2, its paid up capital stands at Rs 3.74 arba. Its annualized EPS has decreased from Rs 49.70 last quarter to Rs 39.48 this quarter after it has capitalized 33.33% bonus share for the FY 2072/73. Its net worth per share now stands at Rs 220.39 with P/E ratio at 50.61 times. Standard Chartered Bank is coming with a further public offering (FPO) of 25,58,140 units at a premium value of Rs 1,290 per unit. After the capitalization of FPO shares, its paid up capital will reach around Rs 4 arba. The commercial bank is expected to distribute the premium collected from the FPO (around Rs 3 arba) and profit from the ongoing fiscal year as bonus shares next year, after which its paid up capital is expected to reach Rs 8 arba.