Kumari Bank Reports Rs. 1.07 Arba Net Profit in Q1; Operating Profit Jumps 32.39%

According to the bank's unaudited financial statements, Kumari Bank posted a net profit of Rs. 1.07 billion during the review period, up from Rs. 1.06 billion in the same quarter of the previous fiscal year. The bank's operating profit increased by 32.39% to Rs. 1.89 billion, compared to Rs. 1.42 billion in the corresponding period last year. However, net interest income declined by 28.19% to Rs. 2.09 billion from Rs. 2.91 billion. Meanwhile, impairment charges dropped significantly by 64.41% to Rs. 449.95 million from Rs. 1.26 billion. Personnel expenses also decreased by 15.97% to Rs. 916.78 million. On the balance sheet front, the bank's paid-up capital remained unchanged at Rs. 26.23 billion, while reserves increased by 5.07% to Rs. 18.82 billion. However, retained earnings declined by 76.83% to Rs. 147.19 million. The bank's deposit collection grew by 6.36% to Rs. 428.34 billion, while loans and advances increased by 7.68% to Rs. 293.09 billion. Similarly, distributable profit after profit/loss appropriation and regulatory adjustments stood at Rs. 147.19 million, compared to a negative distributable profit of Rs. 3.92 billion in the corresponding quarter last year. Regarding financial indicators, Kumari Bank's capital adequacy ratio improved to 9.15% from 8.54%. However, its non-performing loan (NPL) ratio increased to 8.72% from 6.98%. The bank's cost of funds declined to 3.43% from 4.29%. The bank's annualized earnings per share (EPS) stood at Rs. 16.39, compared to Rs. 16.11 in the corresponding quarter. Its net worth per share increased slightly to Rs. 172.31 from Rs. 170.71. At the end of the review quarter, Kumari Bank's market price stood at Rs. 238.40 per share, with a price-to-earnings (P/E) ratio of 14.55 times.