Himalayan Bank Limited shows slight growth in net profit; EPS shrinks to Rs 27.26

Himalayan Bank Limited has published its 2nd quarter report for the fy 2074/75. As of the published report, HBL has earned a net profit of Rs 1.11 arab. The profit was Rs 1.03 arab in the corresponding quarter of last fiscal year. The company has increased its net profit by 7.59%.

A soaring growth is seen in both the interest income and interest expense of the company. The interest income has increased to Rs 4.5 arba, stating a growth of 57.30 %. Interest expense has increased by massive 148.69 % to Rs2.64 arab. The net interest income has increased by 3.59% to Rs 1.87arab.

Staff expense has increased to Rs 51.02crore, with a growth of 7.19 %. 

The company operating profit has decreased to Rs 1.40 arab with a decline of 12.70%. 

Deposit collection has surged to Rs  92.98 arab, up from 91.10 arba with a growth of 2.05%. Company's lending has increased by 9.51% to Rs 82.76 arba.  

The company reserve has increased to Rs 4.7 arab, up from Rs 4.03 arab. Networth of Rs 157.88 has been recorded. 

The company has met the capital requirement of 8 arab, with its capital of 8.11 arba.

Keys Ratios:

• EPS:               Rs 27.26
• Networth:        Rs 157.88
• ROE:              18.05 %
• ROA:               2%
• Cost of Fund:   6.38%
• NPL:                 1.32%
• CCD:                 79.30%

Positive side:    

• Small growth in net profit
• Control in Staff expenses

Negative Side:

• Soar in interest expense.
• Tight CCD ratio.