Positive Effect of Merger seen in Kumari Banks' Q3 report; Net profit rises by astounding 87.73%

As per the 3rd quarter report, Kumari Bank has earned a net profit of Rs 70.56 crores with an EPS of Rs 15.76. The net profit earned this year is 87.73% more then previous year. 

A massive growth is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 4.68 arba, stating a growth of 100.78%. Interest expense too has grown by massive 120% to Rs 3.34 arba. The net interest income has inflated by 64.87% to Rs 1.34 arba. 

Staff expense has increased to Rs 41.13 crores, showing a growth of 63.33%. The operating expense surged by 53.77% to Rs 30.10 crores.

Company’s operating profit has increased by 67.73% to Rs 85.28 crores. 

Both deposit collection and lending has shown an above average growth. Deposit collection has surged to Rs 61.84 arba, up from 39.03 arba last year showing a growth of 58.42%. Company's lending has increased by 73.55% to Rs 56.84 arba.  KBL has a NPL of 1.24%

 

Positive sides:

• Positie Effect of merger seen as business size grows 
• Above average growth in deposit and lending.
• Significant Growth of 64.87% in net interest income. 
• Above average growth in net profit.
• Control in NPL.  

Negative Sides:

• Hefty rise in interest expense.
• Tight CCD ratio of 78.69%
• Increase in base rate (11.62% now)
• Rise in cost of fund (8.67% now)

 

Key Ratios:

EPS                : Rs 15.76
Networth       : Rs 147.11
ROE               : 10.71%
ROA               : 1.26%
Cost of Fund  : 8.67%
NPL                : 1.24%
CCD                : 78.69%