Nabil Bank Limited has announced its unaudited financial results for the fourth quarter of the last fiscal year, showing a substantial increase in net profit and distributable earnings.
Nabil Bank Limited has publicly released its unaudited financial report for the fourth quarter of the last fiscal year 2082/83. According to the report, the bank’s net profit grew by 33.50 percent, reaching Rs. 7 arba 90 crore 57 lakh. In the same period last year, the bank had earned a net profit of Rs. 5 arba 92 crore 21 lakh.
This healthy profit jump mainly resulted from significantly better loan loss management, seen in reduced impairment charges, and a small rise in net interest income.
Looking at the fourth quarter, Nabil Bank’s core income source, net interest income, increased by 4.18 percent, reaching Rs. 17 arba 1 crore. Its total operating income also saw a rise of 6.32 percent, hitting Rs. 22 arba 33 crore. A major positive for the bank was its effective loan loss management, which saw impairment charges reduce from Rs. 4 arba 20 crore to Rs. 2 arba 68 crore.
This reduction in impairment charge definitely helped to strengthen the bank’s operating profit, which then went up by 25.22 percent, reaching Rs. 11 arba 56 crore.
The bank’s non-performing loan (NPL) ratio also improved, declining by 0.28 percentage points to settle at 4.20 percent. This drop in bad loans and the betterment in impairment charges suggest that Nabil Bank’s loan recovery process is becoming more effective.
During this review period, Nabil Bank seemed to adopt an aggressive strategy for business expansion. The bank collected deposits worth Rs. 5 kharba 92 arba 56 crore, showing a 12.95 percent increase, and disbursed loans totaling Rs. 4 kharba 60 arba 32 crore, which is a 12 percent growth.
The bank’s paid-up capital stands at Rs. 32 arba 6 crore. Meanwhile, the distributable profit, which can be shared with shareholders as dividends, increased by an impressive 34.07 percent to Rs. 5 arba 17 crore. The bank also holds a strong reserve and surplus fund, amounting to Rs. 39 arba 85 crore.
Along with the profit growth, the bank’s Earnings Per Share (EPS) saw a rise of Rs. 6.47, reaching Rs. 28.36. Its Net Worth Per Share is recorded at Rs. 247.28. Importantly for investors, the Distributable Earnings Per Share (Distributable EPS) settled at Rs. 19.10. This figure highlights the bank’s very strong position to distribute attractive dividends to its investors in the upcoming period.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
