Strong growth in net interest income leads to an outstanding 131.33% rise in net profit of Mega Bank; earns Rs 1.21 arba till Q3

Mega Bank Nepal Limited (MEGA) has reported an outstanding 131.33% growth in net profit in the third quarter of FY 2075/76.

The bank’s profit has increased from Rs 52.49 crore in the third quarter of the fiscal year 2074/75 to Rs 1.21 arba in the third quarter of the fiscal year 2075/76.

The bank’s deposit rises by 18.45% to Rs 75.21 arba whereas loans and advances have also increased by 21.71% to Rs 67.58 arba till the third quarter. The net interest income (core business income) of the bank has also increased by an excellent 111.60% to Rs 2.75 arba from Rs 1.30 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 10.38 arba with Rs 2.72 arba as its reserve. The Non-Performing Loan (NPL) stands at 1.42%.

In the same quarter, the bank has Rs 76.74 crore as distributable profit after Regulatory Adjustments and PL appropriations which can be utilized in distributing dividends to its shareholders. If the profit growth of this quarter continues in fourth quarter then the company will have Rs 102.32 crore (approx.) as distributable profit. This means MEGA Bank can distribute around 10% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory reserve requirements are not required.

In the third quarter, the annualized EPS of the bank stands at Rs 15.58. The net worth per share stands at Rs 126.20 and qtr end PE ratio stands at 10.84 times.

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 Q3 end paid up capital.