Everest Bank's EPS shrinks to Rs 28. 41 as profit growth gets sluggish

Everest  Bank Ltd.(EBL) has published the report for the 2nd quarter for the fiscal year 2074/75. The company has earned a net profit of Rs 1.14 arab, up from Rs 97.15crore in the corresponding quarter of the previous fiscal year. This accounts for a growth of 17.34%.

A soaring growth is seen in both the interest income and interest expense of the company. The interest income has increased to Rs 4.48 arba, stating a growth of 58.36%. Interest expense has increased by massive 124.26% to Rs 2.38 arab. The net interest income has increased by 18.75% to Rs 2.09 arab.

Staff expense has increased to Rs 42.99 crore, with a growth of 28.35 %. 

The company operating profit, this has risen to Rs 1.77 arab with an increase of 19.44 %. 

Deposit collection has surged to Rs 1.04 kharab, up from 90.44 arba with a growth of 14.22 %. Company's lending has increased by 16.68% to Rs 84.74 arba.  

The company reserve has increased to Rs 5.19 arab, up from Rs 4.90arab. Networth of Rs 164.66 has been recorded. 

Positive side:    

• An increase in Net profit by 17.34%
• Company now has an adequate capital with CAR at 15.68%
• NPL as low as 0.25.

Negative Side:

• Fall in Earning per Share.
• Hefty rise in interest expense.

 

(Figure In 000's)

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Particulars	As of 2074/75	As of 2073/74	Percentage Change
Paid-up Capital	8,106,863	4,606,427	74.25
Reserve	5,190,410	4,897,775	5.97
Deposit	103,299,183	90,436,607	14.22
Net Interest Income	2,098,042	1,766,633	18.75
Operating Profit	1,775,805	1,486,793	19.44
Staff Expense	429,945	334,980	28.35
Net profit	1,140,081	971,575	17.34
Cost of Fund	5.01	2.79
EPS	28.41	42.93
Networth	164.66	207.79