Machhapuchhre Bank Limited (MBL) has showcased a remarkable financial performance in the fourth quarter of fiscal year 2081/82, with its net profit almost doubling. The bank reported a net profit of Rs. 2.01 Arba, signifying a 92.45% boost compared to Rs. 1.04 Arba during the same quarter last year. This increase in profitability is primarily credited to a substantial decline in impairment charges, which plummeted by 74.70% to Rs. 35.37 Crore, down from Rs. 1.39 Arba in the last fiscal year.
The bank’s operating profit surged to Rs. 3.33 Arba, a 99.91% rise from the previous year’s Rs. 1.66 Arba. Net interest income ascended by 15.41%, totaling Rs. 5.75 Arba. Deposits increased by 16.09% to Rs. 1.84 Kharba, while loans and advances to customers rose by 11.74% to Rs. 1.41 Kharba. Borrowings experienced slight growth of 2.50%, reaching Rs. 2.14 Arba.
In terms of retained earnings, the bank observed a significant turnaround, recording Rs. 1.07 Arba, in contrast to a negative Rs. 35.98 Crore in the past fiscal year. Reserves also grew by 8.40%, totaling Rs. 6.31 Arba. While total income increased, personnel expenses went up by 19.22% to Rs. 2.48 Crore.
Key financial ratios exhibited positive trends. The annualized earnings per share (EPS) reached Rs. 17.31, nearly doubling from Rs. 8.99. The net worth per share climbed by 11.23%, hitting Rs. 163.79. The cost of funds fell notably to 4.23%, down from 5.87%, while the non-performing loan (NPL) ratio dipped slightly to 3.83%. The capital adequacy ratio remained robust at 13.32%, although it was marginally lower than the previous year’s 13.74%.
By the end of the quarter, the bank’s shares were priced at Rs. 259.41, featuring a price-to-earnings (PE) ratio of 14.99 times.
