NMB Bank Reports 27.11% Growth in First-Quarter Net Profit
NMB Bank Limited has reported a 27.11% year-on-year increase in net profit, earning Rs. 1.16 billion in the first quarter of FY 2083/84, compared to Rs. 915.98 million in the corresponding period of the previous fiscal year. The growth was supported by higher operating income, increased net interest income, and a significant decline in impairment charges.
According to the bank's unaudited financial statements, NMB Bank recorded a net profit of Rs. 1.16 billion during the review period, up from Rs. 915.98 million in the same quarter last year. The bank's operating profit surged by 26.17% to Rs. 1.89 billion, while net interest income increased by 4.19% to Rs. 2.59 billion. Meanwhile, impairment charges declined by 29.66% to Rs. 502.17 million, compared to Rs. 713.96 million in the corresponding period last year. On the balance sheet front, the bank's paid-up capital increased by 21.33% to Rs. 22.29 billion. Retained earnings rose by 30.98% to Rs. 2.32 billion, while reserves grew by 4.11% to Rs. 14.46 billion. Total deposits increased by 2.18% to Rs. 322 billion, while loans and advances grew by 3.54% to Rs. 258.45 billion. The bank's distributable profit after profit/loss appropriation and regulatory adjustments reached Rs. 2.32 billion, marking a 19.34% increase. In terms of asset quality, the bank's non-performing loan (NPL) ratio increased to 4.92% from 4.58% in the corresponding quarter last year. Its capital adequacy ratio stood at 12.53%, while the cost of funds declined significantly to 3.37% from 4.05%. Despite the growth in net profit, earnings per share (EPS) declined to Rs. 19.02 from Rs. 32.63. Meanwhile, net worth per share increased by 10.78% to Rs. 187.03. At the end of the review quarter, NMB Bank's market price stood at Rs. 272.30 per share, with a price-to-earnings (P/E) ratio of 14.32 times.