Nepal Bank earns a massive Net profit of 2.56 arba ; growth of 41.68% in Operating Profit

As per the 3rd quarter report, Nepal Bank Ltd. has earned a massive Net Profit of Rs 2.56 arba. This is however, merely 2% more than that earned in the previous year. Nepal Bank now has an EPS of Rs 42.57. 

The massive income from Net Interest, also known as primary source of income for banks, is the major contributor for the company's astounding profit. Nepal Bank has a earned a Net Interest Income of Rs 4.59 arba. A significant Increase is seen in the income from fee, commission and discount. The income from this section has incresaed by 51% as compared to the previous year. Nepal Bank has earned an Operating profit of Rs 3.11 arba, around 41.68% more then that earned in the previous year. Staff expense has increased to 1.77 arba from Rs 1.68 arba last year. 

Nepal Bank now has a Paid-up capital of Rs 8 arba with a reserve of Rs 5.97 arba. The company has a per share net worth of Rs 174.32. A minimal growth of 8.17% is seen in company's deposit collection. Nepal Bank has collected a total of 90.81 arba as deposit in the first nine months of the fy. In terms of lending, a growth of 7.41% is reported as the company has lended Rs 79.70 arba. 

Positive Sides :    

• Huge growth in Operating profit
• Hefty income from Interest
• Company has an adequate capital with CAR 18.02%
• Optimum utilization of equity and assets

Negative Sides : 

• Minimal growth in Deposit collection and lending
• Meager surge in Net profit. 

 

Key Indicators

Earning per Share : Rs 42.57

P/E Ratio                : 7.54 times

P/B Ratio                : 1.84 times

Networth                : Rs 174.31

ROA                        : 3%

ROE                        : 26.88%

CCD Ratio              : 76.48%