Machhapuchhre Bank Reports 12.24% Rise in Net Profit to Rs. 2.11 Arba in Q4 FY 2082/83; Deposits Grow 19.72%

Machhapuchhre Bank Limited (MBL) has reported a 12.24% increase in net profit in the fourth quarter of fiscal year 2082/83, earning Rs. 2.11 Arba compared to Rs. 1.88 Arba in the corresponding quarter of the previous fiscal year. The bank’s paid-up capital increased significantly by 29.81% to Rs. 15.09 Arba (including preference shares) from Rs. 11.62 Arba. The increase includes the issuance of Rs. 3 Arba in irredeemable preference shares. Retained earnings rose 4.87% to Rs. 98.20 Crore, while reserves increased 17.69% to Rs. 7.44 Arba. Machhapuchhre Bank’s deposits grew 19.72% to Rs. 2.20 Kharba from Rs. 1.84 Kharba a year earlier. Loans and advances also increased 15.95% to Rs. 1.64 Kharba from Rs. 1.41 Kharba. Net interest income rose 5.53% to Rs. 6.07 Arba from Rs. 5.76 Arba. Personnel expenses increased 10.27% to Rs. 2.72 Arba, while impairment charges surged 94.35% to Rs. 1.08 Arba from Rs. 55.67 Crore. Despite the sharp increase in impairment charges, the bank’s operating profit edged up 0.54% to Rs. 3.16 Arba from Rs. 3.15 Arba in the previous fiscal year. Distributable profit after profit/loss appropriation and regulatory adjustments increased 4.87% to Rs. 98.19 crores from Rs. 93.64 Crore. The bank’s capital adequacy ratio improved to 10.04% from 9.27%. Meanwhile, the NPL ratio remained broadly stable at 3.98%, compared to 3.96% in the previous fiscal year. Machhapuchhre Bank’s cost of funds declined significantly by 22.70% to 3.27% from 4.23%. However, earnings per share (EPS) declined 4.72% to Rs. 15.44 from Rs. 16.21. Net worth per share increased 4.44% to Rs. 169.91 from Rs. 162.70. At the end of the review quarter, Machhapuchhre Bank’s share price stood at Rs. 248, with its price-to-earnings (P/E) ratio recorded at 16.06 times. Report: Major Financial Highlights:

Particulars (In Rs '000) Machhapuchhre Bank Limited

Q4 2082/83 Q4 2081/82 Difference

Paid Up Capital 15,086,211.56 11,621,357.27 29.81%

Ordinary Shares 12,086,211.56 11,621,357.27 4.00%

Preference Share (Irredeemable)  3,000,000.00 0.00 0.00%

Share Premium 30,881.77 30,881.77 0.00%

Retained Earnings 981,961.03 936,365.85 4.87%

Reserves 7,436,819.85 6,318,762.34 17.69%

Deposit 220,498,454.80 184,176,049.90 19.72%

Loans & Advances  163,991,227.94 141,436,048.91 15.95%

Net Interest Income 6,074,927.54 5,756,716.09 5.53%

Personnel Expenses 2,718,934.73 2,465,781.64 10.27%

Impairment Charges 1,081,850.30 556,657.05 94.35%

Operating Profit 3,164,729.20 3,147,641.75 0.54%

Net Profit 2,114,120.76 1,883,643.49 12.24%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  981,961.03 936,365.85 4.87%

Capital Adequacy (%) 10.04 9.27 8.31%

NPL (%) 3.98 3.96 0.51%

Cost of Fund (%) 3.27 4.23 -22.70%

EPS  (In Rs.) 15.44 16.21 -4.72%

Net Worth per Share (In Rs.) 169.91 162.70 4.44%

Qtr end PE Ratio (times) 16.06

Qtr End Market Price 248