Prime Commercial Bank reports a rise in net profit by 27.76% ; Eps down to Rs 17.80

Prime Commercial Bank has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 71.51 crores till the end of 2nd quarter. The net profit was Rs 55.97 crores in the corresponding quarter of the previous fiscal year. This accounts for a decent growth of 27.76%. PCBL now has an eps of Rs 17.80.

A massive growth is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 3.84 arba, stating a growth of 87.71%. Interest expense too has grown by massive 125.93% to Rs 2.80 arba. The net interest income has inflated by 29% to Rs 1.04 arba. 

Staff expense has increased to Rs 17.91 crores, showing a growth of 44%. The operating expense surged by 47% to Rs 16 crores.

Company’s operating profit has increased by 28.66% to Rs 94.46 crores. 

Both deposit collection and lending has shown an above average growth. Deposit collection has surged to Rs 71.06 arba, up from 55 arba last year showing a growth of 29.18%. Company's lending has increased by 36% to Rs 62.60 arba.  PCBL has a NPL of 1.43%

However, company’s reserve has slipped by 13% to Rs 2.11 arba. Company now has a networth of Rs 126.35. 

Positive sides:

• Decent growth in deposit and lending.
• Significant Growth of 29% in net interest income. 
• Above average growth in net profit.
• Low staff expense.  

Negative Sides:

• Hefty rise in interest expense.
• Tight CCD ratio of 77.50%
• Tight CAR of 12.76%
• Increase in base rate (10.76% now)
• Rise in cost of fund (8.16% now)

Key Ratios:

EPS                : Rs 17.80
Networth       : Rs 126.35
ROE               : 14.35%
ROA               : 1.73%
Cost of Fund  : 8.16%
NPL                : 1.43%
CCD                : 77.50%