Nepal SBI Bank Posts Rs. 2.04 Arba Net Profit in Q4 End, FY 2082/83; EPS at Rs. 18.04 and PE Ratio at 21.78 Times

Nepal SBI Bank Limited (SBI) posted a net profit of Rs. 2.04 Arba in the fourth quarter of FY 2082/83, marking a 12.89% increase from Rs. 1.81 Arba reported in the same quarter of the previous fiscal year. A reduction in impairment charges mainly supported the growth in profitability. The bank’s earnings per share (EPS) rose to Rs. 18.04 from Rs. 16.62 a year earlier. Based on the quarter-end market price of Rs. 392.9 per share, the bank’s price-to-earnings (P/E) ratio stood at 21.78 times. The bank’s paid-up capital increased to Rs. 11.33 Arba during the fiscal year, compared to Rs. 10.89 Arba in the previous fiscal year. Retained earnings grew 4.55% year-on-year to Rs. 1.25 Arba, indicating an increase in accumulated distributable earnings. Similarly, the bank’s reserves rose 12.03% to Rs. 9.48 Arba. On the business front, customer deposits increased 6.62% to Rs. 2.12 Kharba, while loans and advances grew 8.23% to Rs. 1.46 Kharba. The bank also recorded an improvement in its funding efficiency, with the cost of funds declining to 4.06% from 5.18% in the corresponding period last year. The bank’s net interest income increased marginally by 1.30% to Rs. 5.33 Arba. However, personnel expenses climbed 10.16% to Rs. 2.18 Arba. Meanwhile, impairment charges declined 8.77% to Rs. 94.01 Crores. Despite the lower impairment charges, the bank’s operating profit decreased 30.20% year-on-year to Rs. 1.91 Arba. In terms of asset quality, the bank’s non-performing loan (NPL) ratio stood at 2.92%, compared to 3.35% in the previous year. The capital adequacy ratio stood at 13.74%, compared to 12.75% a year earlier. Meanwhile, net worth per share increased to Rs. 194.73 from Rs. 188.67 in the previous year. Report: Major Financial Highlights:

Particulars (In Rs '000) Nepal SBI Bank Limited

Q4 2082/83 Q4 2081/82 Difference

Paid Up Capital 11,335,124.39 10,899,158.07 4.00%

Share Premium 0.00 0.00  

Retained Earnings 1,251,639.29 1,197,117.47 4.55%

Reserves 9,486,124.77 8,467,281.30 12.03%

Deposit 212,826,428.57 199,603,443.88 6.62%

Loans & Advances  146,077,737.62 134,963,770.66 8.23%

Net Interest Income 5,334,310.56 5,266,044.29 1.30%

Personnel Expenses 2,184,810.39 1,983,262.24 10.16%

Impairment Charges 940,100.96 1,030,515.16 -8.77%

Operating Profit 1,916,141.44 2,745,249.48 -30.20%

Net Profit 2,044,330.74 1,810,960.18 12.89%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  1,251,639.30 1,197,117.47

Capital Adequacy (%) 13.74 12.75 7.76%

NPL (%) 2.92 3.35  

Cost of Fund (%) 4.06 5.18 -21.62%

EPS  (In Rs.) 18.04 16.62 8.54%

Net Worth per Share (In Rs.) 194.73 188.67 3.21%

Qtr end PE Ratio (times) 21.78

Qtr End Market Price 392.9