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

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.