Strong growth in net interest income and lower impairment charge drive earnings.
Mahuli Laghubitta Bittiya Sanstha Limited has published its unaudited financial report for the fourth quarter of the fiscal year 2081/82. As per the report, the company recorded a remarkable 255.80% increase in net profit, reaching NPR 11.45 crore, compared to NPR 3.21 crore during the same period last year. The surge in profit is mainly attributed to a significant rise in net interest income and a decline in impairment charges.
During the review period, the company’s net interest income rose by 43.03% to NPR 36.73 crore, while operating income increased by 36.30%, reaching NPR 41.97 crore. At the same time, the impairment charge dropped significantly from NPR 3.77 crore to NPR 1.77 crore, contributing directly to the boost in profitability.
In terms of operational performance, Mahuli Laghubitta collected NPR 2.10 arba in borrowings and NPR 1.83 arba in deposits, aggregating total funding of NPR 4.74 arba, which it utilized to disburse loans amounting to NPR 5.25 arba.
The company’s capital base remains solid with a paid-up capital of NPR 36.99 crore, distributable profit of NPR 12.42 crore, and NPR 42.31 crore accumulated in the reserve fund. The company also posted a sharp rise in earnings per share (EPS), which increased by NPR 20.98, bringing the total to NPR 30.96. Its net worth per share stood at NPR 214.39, and distributable EPS reached NPR 33.57.
However, the non-performing loan (NPL) ratio increased by 0.86 percentage points, rising to 4.80% by the end of the quarter. The company’s Price-to-Earnings (P/E) ratio stood at 41.86 times, while the Capital Fund to Risk-Weighted Assets (RWA) ratio reached 11.46%. Other key metrics include a Cost of Fund of 7.51%, a Base Rate of 12.68%, and an Interest Rate Spread of 7.04%.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
COMMENTS