NMB Bank Q4 Profit Jumps 40.6% to Rs. 4.01 Arba, EPS Climbs to Rs. 19.53

NMB Bank Limited (NMB) has reported a strong financial performance for the fourth quarter of FY 2082/83, with its net profit surging 40.60% year-on-year to Rs. 4.01 Arba. The impressive growth was primarily driven by higher loan expansion and a significant increase in net interest income, despite a notable rise in impairment charges. The bank's paid-up capital, including preference shares, stood at Rs. 22.28 Arba in FY 2082/83, compared to Rs. 18.36 Arba in FY 2081/82. Retained earnings showed a remarkable turnaround, rising to a positive Rs. 1.87 Arba from a negative balance of Rs. 1.90 Arba in the previous fiscal year. Meanwhile, the bank's reserves grew by 16.76% year-on-year to Rs. 13.90 Arba. Customer deposits grew by 12.17% to Rs. 3.15 Kharba, while loans and advances expanded by 9.33% to Rs. 2.49 Kharba. Net interest income rose 17.52% to Rs. 9.42 Arba, whereas personnel expenses saw only a marginal increase of 0.30% to Rs. 3.05 Arba. Although impairment charges climbed 43.15% to Rs. 2.34 Arba, the bank still recorded a 29.06% increase in operating profit, reaching Rs. 4.01 Arba. Following appropriation and regulatory adjustments, NMB Bank's distributable profit stood at Rs. 1.75 Arba. Its capital adequacy ratio improved to 12.73% from 11.92% in the previous year. However, the non-performing loan (NPL) ratio edged up to 4.91% from 4.11%. The cost of funds declined significantly to 3.74% from 5.06%, reflecting improved funding efficiency. Earnings per share (EPS) increased to Rs. 19.53, while net worth per share rose 4.19% to Rs. 181.80. As of the end of Q4 FY 2082/83, the bank's price-to-earnings (P/E) ratio stood at 12.26 times, based on a closing market price of Rs. 239.50 per share. Report: Major Financial Highlights:

Particulars (In Rs '000) NMB Bank Limited

Q4 2082/83 Q4 2081/82 Difference

Paid Up Capital 22,285,041.00 18,366,706.00 21.33%

8.25% Preference Share 3,000,000.00

0.00%

Paid Up Excluding Pref. Share 19,285,041.00

Retained Earnings 1,872,996.00 1,901,381.00 -1.49%

Reserves 13,901,734.00 11,906,521.00 16.76%

Deposit 315,118,455.00 280,926,468.00 12.17%

Loans & Advances  249,759,929.00 228,456,304.00 9.33%

Net Interest Income 9,426,240.00 8,020,894.00 17.52%

Personnel Expenses 3,051,537.00 3,042,547.00 0.30%

Impairment Charges 2,345,056.00 1,638,170.00 43.15%

Operating Profit 6,117,506.00 4,739,988.00 29.06%

Net Profit 4,013,671.00 2,854,638.00 40.60%

Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  1,750,941.00 1,901,381.00 -7.91%

Capital Adequacy (%) 12.73 11.92 6.80%

NPL (%) 4.91 4.11 19.46%

Cost of Fund (%) 3.74 5.06 -26.09%

EPS  (In Rs.) 19.53 25.81 -24.33%

Net Worth per Share (In Rs.) 181.80 174.49 4.19%

Qtr end PE Ratio (times) 12.26

Qtr End Market Price 239.5