NIMB Bank’s Profit Jumps Due to Decline in Loan Loss Expenses, What Are Other Indicators?
लगानी न्यूज
Kathmandu. Nepal Investment Mega Bank (NIMB) has reported a significant increase in its net profit. The bank has earned a net profit of Rs 1.18 billion in the first quarter of the current fiscal year 2083/84. The bank had earned a net profit of Rs 4,50,50,000 in the same period of the previous financial year.
The bank’s net profit has increased by 252 TAG_OPEN_div_38 2 percent compared to the previous year. The bank’s profit has improved significantly as the amount to be set aside for potential loan loss expenses (impairment charges) has decreased.
In the last fiscal year, the bank’s impairment charge decreased by more than 60.81 percent to Rs 1,TAG_OPEN_div_36 0973,93,000 from Rs 2.80 billion in the previous fiscal.
The bank’s net interest income stood at Rs 3,TAG_OPEN_div_34 27,16,85,000 till mid-October of the current financial year. Such income was Rs 3,24,31,25,000 in the same period of the previous financial year. Accordingly, the bank’s net interest income has increased marginally.
During the review period, the bank earned Rs 59,TAG_OPEN_div_32 21,14,000 from net fees and commissions. The total operating income of the bank stood at Rs 4.34 billion and operating profit stood at Rs 1.69 billion.
The bank’s net profit has improved significantly, but the distributable profit is negative at Rs 5.16 billion. This shows that there is a difference between the net profit of the bank in the current period and the amount available to distribute dividends to shareholders.
The bank’s deposit collection has increased by 10.75 percent. The bank collected deposits of Rs 526.63 billion till the end of October last year, while in the same period of the current fiscal year, it collected deposits of Rs 540.79 billion.
Since then, the bank’s credit flow has increased by only 0.33 percent. The loan investment has increased from Rs 321.34 billion in the first quarter of the last fiscal year to Rs 322.41 billion by the end of the current financial year.TAG_OPEN_div_26
In the review period, the bank’s loan-to-deposit ratio (CD ratio) stood at 66.73 percent.TAG_OPEN_div_24
The bank’s earnings per share (EPS) has also improved significantly. Earnings per share increased from Rs 0.53 in the first quarter of the previous financial year to Rs 13.85 in the same period of the current financial year.TAG_OPEN_div_22
Similarly, the bank’s net worth per share is Rs 200.88 and P/E ratio (P/E) ratio is 14.89 times.TAG_OPEN_div_20
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