Youngest commercial bank of Nepal- Janata Bank's net profit touches Rs 1 arba in Q3; has capacity to distribute 10% dividend

Mon, May 13, 2019 6:38 AM on Financial Analysis, Latest,
Youngest c...

Janata Bank Limited (JBNL) has published its third quarter report for the FY 2075/76 with an outstanding 60.56% growth in net profit.

The bank’s profit has increased from Rs 63.75 crore in the third quarter of the fiscal year 2074/75 to Rs 1.02 arba in the third quarter of the fiscal year 2075/76. In the same quarter, the bank has Rs 61.73 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 82.30 crore (approx.) as distributable profit. This means JBNL can distribute around 10% (approx.) dividend from the earnings of FY 2075/76 next year if other regulatory requirements are not required.

The bank’s deposit rises by 20.78% to Rs 70.44 arba whereas loans and advances have also increased by 22.56% to Rs 64.70 arba in the third quarter. The net interest income (core business income) of the bank has also increased by an outstanding 46.61% to Rs 2.45 arba from Rs 1.67 arba of the corresponding quarter.

The bank’s paid up capital stands at Rs 8 arba with Rs 1.81 arba as its reserve. The Non-Performing Loan (NPL) has decreased to 1.21%.

In the third quarter, the annualized EPS of the bank stands at Rs 17.06. The net worth per share stands at Rs 122.69 and qtr end PE ratio stands at 10.78 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.

Particulars (In Rs '000)

Janata Bank Limited

Q3 2075/76

Q3 2074/75

Difference

Paid Up Capital

8,000,786

8,000,786*

0.00%

Share Premium

     

Retained Earnings

62,337

686,063*

-90.91%

Reserves

1,752,701

1,348,733*

29.95%

Deposits

70,449,793

58,329,724*

20.78%

Loans & Advances

64,701,087

52,791,716*

22.56%

Net Interest Income

2,450,904

1,671,674

46.61%

Impairment Charge/(Reversal)

-190,854

-117,927

-

Personnel Expenses

858,132

555,975

54.35%

Operating Profit

1,472,829

942,398

56.29%

Profit/(Loss) for the Year

1,023,744

637,591

60.56%

Total Comprehensive Income

1,021,342

637,591

60.19%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments

617,375

-

-

Capital Adequacy Ratio (CAR)

13.07

16.13

-18.97%

NPL

1.21

1.95

-37.95%

CCD (as per NRB Directives)

79.74

78.91

1.05%

Cost of Fund (%)

7.66

7.98

-4.01%

Base Rate (%)

10.52

11.66

-9.78%

Annualized EPS (In Rs.)

17.06

10.63

60.56%

Net Worth per Share (In Rs.)

122.69

125.43

-2.19%

Qtr End PE Ratio (times)

10.78

-

-