Everest Bank shows a net profit growth of 18.19% in 3rd quarter; NPL as low as 0.23

As per the 3rd quarter report, Everest Bank has earned a net profit of Rs 1.80 arba. It is 18.19% higher then that earned in the corresponding quarter of last fiscal year. Everest bank has a per share earning of Rs 29.66 .The rise in paid up capital by nearly 76% has resulted a drop in EPS. The bank had a per share earning of Rs 44.17 last year.  

The rise in interest expense by 93% has limited the company's growth in net interest income to 21.53%. The company's other operating income, earning from fee, discount has significantly increased, which has contributed for the rise in net profit. 

A significant increase of nearly 32% is seen in the staff expense. In term of deposit, a surge of 15.23% is noticed as it has increased to Rs 1.06 kharba. Similarly, 19.88% rise was seen in company's loan extension as it has increased to Rs 88.17 arba. 

The company currently has a paid up capital of Rs 8.10 arba and a reserve of Rs 5.85 arba. The net worth per share stands at massive Rs 172.21 

 

Positive Sides :

• Low NPL of 0.23 
• Decent rise in Deposit and lending.
• Average growth in Net profit. 
• Return on equity of 19.91%
• Company has an adequate capital of 15.70%
• CCD of 75% shows that company still has room for lending

Negative sides :

• Significant rise in Staff expense. 
• Rise in Base rate

 

Key indicators :

Earning per share (EPS)     : Rs 29.96

P/E Ratio                              : 26.60 times

P/B Ratio                              : 4.60 times 

NPL                                       : 0.23%

ROE                                      : 19.91%