Nabil Bank Limited (NABIL) disclosed a net profit of Rs. 1.75 arba in the initial quarter of FY 2082/83, reflecting a 14.57% drop from Rs. 2.05 arba noted in the same timeframe of the last fiscal year. This profit reduction was primarily caused by a fall in net interest income and an escalation in impairment charges.
The bank’s net interest income diminished by 5.77% to Rs. 39.01 arba, compared to Rs. 41.40 arba in the equivalent quarter of the previous year. Operating profit also saw a decline of 10.84%, settling at Rs. 25.79 arba, while impairment charges soared by 41.40% to Rs. 6.47 arba. Personnel expenses experienced a slight uptick of 3.41%, reaching Rs. 14.78 arba.
Nevertheless, despite the profitability decrease, Nabil’s deposits rose by 6.10% to Rs. 5.56 kharba, and loans along with advances grew by 1.99% to Rs. 4.21 kharba. The bank’s reserves improved marginally by 1.66% to Rs. 32.44 arba, with retained earnings increasing by 18.06% to Rs. 5.63 arba.
The capital adequacy ratio was recorded at 12.67%, a slight increase from 12.64% during the same period last year. The cost of funds fell by 22.22% to 4.13%, indicating enhanced cost control. Earnings per share (EPS) stood at Rs. 25.97, down from Rs. 30.40, while the net worth per share remained constant at Rs. 100.14.
Nabil Bank’s distributable profit after adjustments for regulations rose by 13.13% to Rs. 5.63 arba. The bank’s shares traded at Rs. 509 at the quarter’s conclusion, with a price-to-earnings (P/E) ratio of 19.60 times.
