Mega Bank Nepal Ltd. net profit remains almost stagnant; EPS drops to Rs 10.64

Mega Bank Nepal Ltd. has published the report for the 2nd quarter for the fiscal year 2074/75. The company has earned a net profit of Rs 39.4 crore, up from Rs 37.1 in the corresponding quarter of the previous fiscal year. This accounts for a growth of 6.13%.

A hefty growth is seen in both the interest income and interest expense of the company. The interest income has increased to Rs 2.49 arba, stating a growth of 53.42%. Interest expense has increased by massive 93.37% to Rs 1.65 crore. The net interest income has increased by 9.34% to Rs 84.63 crores. 

Staff expense has increased to Rs 19.38 crore, with a growth of 24.88%. 

The company has shown a decline in its operating profit, this has shrunk to Rs 47.31 crore with a decrease of 10.24%. 

Both deposit collection and lending has shown a decent growth. Deposit collection has surged to Rs 45.57 arba, up from 38.52 arba with a growth of 18.32%. Company's lending has increased by approx. 19.86% to Rs 40.77 arba.  

The company has accumulated a reserve of Rs 1.68 arab, up from Rs 1.31 arab. Networth of Rs 122.73 has been recorded. 

Positive side:   

• Growth in company's reserve by 28.22% 
•  
• NPL is 0.96%
• Company now has an adequate capital with CAR at 18.52%

Negative Side:

• Fall in Earning per Share. 
• Hefty rise in interest expense.
• Tight CCD ratio of 79.37%.
• A decline in Operating profit.

 

(Figure In 000's)

Particulars	As of 2074/75	As of 2073/74	Percentage Change
Paid-up Capital	7,376,743	4,012,031	83.87
Reserve	1,676,591	1,307,605	28.22
Deposit	45,573,713	38,517,106	18.32
Net Interest Income	846,347	774,047	9.34
Operating Profit	473,105	527,075	10.24
Staff Expense	193,845	155,223	24.88
Net profit	393,649	370,909	6.13
Cost of Fund	7.58	4.47
EPS	10.64	18.54
Networth	122.73	132.29