Machhapuchchhre Bank Limited (MBL) has disclosed a net profit of Rs. 41.79 crore for the first quarter of FY 2082/83, indicating a 16.95% decrease compared to Rs. 50.32 crore accrued in the same timeframe of the preceding fiscal year. This dip in profitability was predominantly attributed to an increase in impairment charges and a decrease in operating profit.
The bank’s net interest income recorded at Rs. 145.89 crore, showing a slight decline of 1.60% from Rs. 148.27 crore last year. Operating profit plummeted significantly by 40.15% to Rs. 59.84 crore, whereas impairment charges escalated to Rs. 46.08 crore, in contrast to a reversal of Rs. 4.34 crore during the same quarter of FY 2081/82. Personnel expenses modestly rose by 3.20% to Rs. 70.31 crore.
Deposits reached Rs. 1.93 kharba, marking an increase of 5.08%, while loans and advances expanded by 5.10% to Rs. 1.48 kharba. The bank’s reserves enhanced by 5.78% to Rs. 6.68 arba; nonetheless, retained earnings fell into the negative at Rs. -11.42 crore compared to Rs. 93.63 crore in the previous year. Consequently, the distributable profit after regulatory measures resulted in a loss of Rs. 11.42 crore.
The capital adequacy ratio reduced to 8.73% from 9.38%, while the cost of funds significantly improved, dropping by 26.33% to 4.03%. Earnings per share (EPS) were reported at Rs. 13.83, down from Rs. 17.32, and net worth per share declined to Rs. 154.61. The bank’s shares were valued at Rs. 209.40 at the quarter’s close, reflecting a price-to-earnings (P/E) ratio of 15.14 times
