Citizen's operating profit rises by 21.9%; slight decrease in net profit

Citizens Bank International has published its 2nd quarter report for the fy 2074/75. The net profit of this Commercial bank has plummeted by minor 0.48% . 

As per the published report, CZBIL has earned a net profit of Rs 62.86 crores. The profit was Rs 63.16 crores in the corresponding quarter of last fiscal year. A surge of 21.93% is noticed in company's operational profit. It amounts to Rs 83.26, it was Rs 68.28 crores in the corresponding quarter of last fiscal year.

The prime reasons behind the decreased net profit are the increased interest expense and decreased non-operating income. Non-operating income has fallen to Rs 68.13 lakh from Rs 3.20 crores last year. This not being a primary income of the company, its fall doesnt make a serious issue. 

The commercial bank's net interest income has increased to Rs 97.49 crores, up from Rs 85.51 crores. This shows a rise of 14%. Company's interest income has increased by 59%, whereas interest expense increased by 91%.  

Citizen has collected a total deposit of Rs 58.46 arba, approx. 11% more then that collected last year. Total lending has increased by approx 14% in the review period.

On the positive side,

• The company has shown a balance growth in both deposit and lending.
• The operating profit has surged in the review period.
• Citizen now has an adequate capital with CAR at 15.04%.   

On the negative side,

• Decline in per share earning of the company.
• Rise in Non-performing Loan to 1.94%
• Tight CCD ratio.
• Huge increment in Interest expense 

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