कामना सेवा विकास बैंकको आ.व. ०८२/८३ को चौथो त्रैमासिक वित्तीय विवरणKamana Sewa Bikas Bank: Q4 FY 2082/83 Unaudited Financial Results

Unaudited Financial Results (Quarterly)

As on 32 Ashad 2083

Condensed Statement of Financial Position

As on Quarter ended 32 Ashad 2083

(Amount in NPR)

Particulars This Quarter ending Immediate Previous Year Ending (Audited)

Assets

Placement with Bank and Financial Institutions - -

Derivative Financial Instruments - -

Other Trading Assets - -

Current Tax Assets - -

Investment in Subsidiaries - -

Investment in Associates - -

Investment Property - -

Liabilities

Due to Bank and Financial Institutions 566,106,644 667,439,221

Due to Nepal Rastra Bank - -

Derivative Financial Instruments - -

Deposits from Customers 66,177,524,639 62,834,301,164

Borrowings - -

Deferred Tax Liabilities - -

Subordinated Liabilities - -

Total Liabilities 68,682,063,070 65,517,113,338

Equity

Share Capital 4,211,930,815 3,510,846,195

Share Premium - -

Non Controlling Interest - -

Note: Share capital for this year includes NPR 350 Million 'KSBB 9% PNCPS'

Statement of Distributable Profit or Loss

For the Quarter ended 32 Ashad 2083

(As per NRB Regulation)

(Amount in NPR)

Particulars Current Year

Upto this Quarter

YTD Previous Year

Corresponding Quarter

YTD (Audited)

Net profit or (loss) as per statement of profit or loss 894,178,126 669,751,323

Appropriations:

f. Other - -

Investment adjustment reserve (47,000,000) -

Regulatory adjustment :

a. Interest receivable (-)/previous accrued interest received (+) 35,554,655 139,238,844

b. Short loan loss provision on investment (-)/reversal (+) - -

c. Short provision for possible losses on investment (-)/reversal (+) - -

d. Short loan loss provision on Non Banking Assets (-)/reversal (+) (4,917,345) 45,572,686

e. Deferred tax assets recognized (-)/ reversal (+) - (13,290,691)

f. Goodwill recognized (-)/impairment of Goodwill (+) - -

g. Bargain purchase gain recognized (-)/reversal (+) - -

h. Actuarial loss recognized (-)/reversal (+) - -

i. Fair value Loss on investment - -

j. Other (+)/(-) - -

Adjustment/Restatement - -

Distribution:

Notes to Interim Financial Statements :

1. The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) in line with NRB Directives. In compliance with NRB's ECL Guidelines, Bank has considered the impairment on credit exposures as the higher of total ECL provision as per NFRS 9 and existing regulatory provision in Unified Directives. Separate reporting of ECL shall be done to NRB by the Bank.

2. Loans and advances include interest receivable on loans and are presented net of loan impairments.

3. Bank has set aside Rs. 14.29 crore per year starting from Fiscal year 2080-81 for Debenture Redemption Reserve fund. Till current FY accumulated figure of Debenture Redemption reserve is Rs. 42.86 crore. The fund is subject to change if directed by regulator or external audit.

4. Above figures are regrouped and rearranged.

5. Wherever necessary, figures have been regrouped and rearranged.

6. There are no related party transactions for the quarter with related parties apart from BOD allowance and salary and allowances to CEO and DCEO.

7. The interim unaudited financial statement has been updated in Bank's website https://www.kamanasewabank.com

Condensed Statement of Profit or Loss

For the Quarter ended 32 Ashad 2083

(Amount in NPR)

Particulars Current Year

This Quarter Current Year

Upto This Quarter (YTD) Corresponding Previous Year

(Audited)

This Quarter Corresponding Previous Year

(Audited)

Upto This Quarter (YTD)

Additional Disclosure as per Securities Registration and Issue Regulation - 2073 (Sub-Rule (1) of Rule 26, Annex 14) for 4th Quarter Report Fiscal Year 2082/083

1. Financial Statement

a. Statement of Financial Position and Statement of Profit and Loss as per Nepal Financial Reporting Standard: Published along with this report. There has been no transaction between related parties.

b. Key financial indicators and ratios

Earnings Per Share (Equity Shareholders) (NPR) 22.75

Operating Expense

Income Tax Expense

Profit Attributable to:

Equity-holders of the Bank 305,479,405 894,178,126 176,566,754 669,751,323

Non-Controlling Interest - - - -

Profit for the Period 305,479,405 894,178,126 176,566,754 669,751,323

Condensed Statement of Other Comprehensive Income

For the Quarter ended 32 Ashad 2083

(Amount in NPR)

Particulars Current Year Corresponding Previous Year

This Quarter Upto This Quarter (YTD) This Quarter Upto This Quarter (YTD)

Profit for the year 305,479,405 894,178,126 176,566,754 669,751,323

Other Comprehensive Income, Net of Income Tax

a) Items that will not be reclassified to profit or loss

Gains/(losses) from investment in equity instruments measured at fair value (22,385,450) (24,180,044) 45,348,695 74,474,869

Gains/(losses) on revaluation - - - -

Actuarial gains/(losses) on defined benefit plans - - - -

b) Items that are or may be reclassified to profit or loss

Gains/(losses) on cash flow hedge - - - -

Exchange gains/(losses)(arising from translating financial assets of foreign operation) - - - -

Income tax relating to above items - - - -

Reclassify to profit or loss - - - -

Net other comprehensive income that are or may be reclassified to profit or loss - - - -

c) Share of other comprehensive income of associate accounted as per equity method - - - -

Total Comprehensive Income attributable to:

Equity-Holders of the Bank 289,809,590 877,252,096 208,310,840 721,883,731

Non-Controlling Interest - - - -

Total Comprehensive Income for the Period 289,809,590 877,252,096 208,310,840 721,883,731

Earnings per Share

EPS (Equity Shareholders)= (Net profit after tax - PNCPS Dividend)/Number of Equity Shares

Ratio as per NRB Directive

Particulars Current Year Previous Year Corresponding

This Quarter Upto This Quarter (YTD) This Quarter Upto This Quarter (YTD)

Capital Fund to RWE 14.16% 12.58%

Tier 1 Capital to RWA 11.66% 9.91%

CET 1 Capital to RWA 11.00% 9.91%

Annualized Return on Equity 13.87% 11.83%

Annualized Return on Assets 1.22% 0.97%

Non-Performing Loan (NPL) to Total Loan 3.77% 3.49%

Net Non-Performing Loan (NPL) to Total Loan 0.55% 0.28%

Total Loan Loss Provision to Total NPL 121.54% 132.23%

Cost of Funds 3.69% 5.09%

Credit to Deposit Ratio (CD) 86.34% 85.38%

Base Rate 5.53% 7.07%

Interest Rate Spread 3.98% 4.27%

Price Earnings Ratio (P/E Ratio) (Times) 20.84

Net worth Per Share (Equity Shareholders) (NPR) 171.01

Liquidity Ratio 25.12%

Total Assets per share (Equity Shareholders) (NPR) 1,958.51

Capital Adequacy Ratio 14.16%

Note: Earnings per share (Equity Shareholders) = (Net profit after tax - PNCPS Share Dividend)/Number of Equity Shares

Net worth per share (Equity Shareholders) = (Total Equity Fund - Preference Share Capital)/Number of Equity Shares

1. Financial Analysis

a. The bank has registered NPR 894.18 million in net profit.

b. There has been change in the bank's reserve, profit and liquidity position in line with the growth in business volume.

c. The bank has issued 'KSBBL 9% Perpetual Non-Cumulative Preference Share' amounting to Rs. 350 Millions (35,00,000 Kitta @ NPR 100 Each) during FY 2082-83. The Capital instrument has been reflected under Share Capital in the bank's Statement of Financial Position. With the issuance of Preference Share, Bank's Capital Adequacy position is expected to strengthen further.

d. The bank has been able to generate satisfactory financial results as of 4th Quarter of Fiscal year 2082-83.

2. Details relating to legal action

a. Case filed against the bank

There were no major cases except those arising during the normal course of the bank's business.

b. Case relating to disobedience of prevailing law or commission of criminal offence filed by or against the promoter or director of the bank

No such information has been received.

c. Case relating to financial crime filed against any promoter or director

No such information has been received.

3. Analysis of share transaction and progress of the bank

a. Management's view on share transaction of bank in the secondary market

As the prices in the secondary market is determined by open share market operations, management view is neutral on this.

b. Maximum, minimum, closing price, total traded days and total share transacted during the quarter (Source www.nepalstock.com )

Maximum Price 493.90 Total Days Transacted 64

Minimum Price 468 Total Share Transacted 1,780,938 Shares

Closing Price 474 Total Transactions NRs. 859,547,811

4. Problem and Challenges

Internal

• Recruitment and retention of quality manpower.

• Increasing cost of operation.

• Increasing trend of Non-Performing Assets.

• Limited scope for increasing non-interest income.

• Challenges in liquidity management and interest risk management.

External

• Slowdown in country's economic activities.

• Competitive banking business.

• Limited credit opportunities in productive sectors.

• Excess availability of liquid funds in market

• Global economic uncertainty and geopolitical developments.

• Increasing cyber frauds and information security risks.

• Outward trend of selection of foreign countries for better opportunity by the youths.

5. Strategy

• Identification of new possibilities for business development.

• Focus on quality onboarding of customers/ borrowers.

• Strong risk management approach and portfolio diversification.

• Reinforcement of prudent banking practices.

• Re-pricing of assets and liabilities keeping in view the market fluctuations.

• Prioritization of digitization in banking services to enhance efficiency.

• Robust recovery management.

6. Corporate Governance

The bank follows zero tolerance culture on governance and compliance. It ensures absolute compliance of directives and guidelines issued by Nepal Rastra Bank. To ensure adequate compliance and risk management the bank has developed strong policy and procedural framework along with dedicated independent compliance, audit and risk management function.

The board of directors, audit committee, risk management committee, human resource management committee, recruitment committee and all other management committee are committed to enforce highest standard of corporate governance within the bank.

7. Declaration by CEO

I hereby declare that the data and information provided in this report is true, complete and factual to the best of my knowledge. No any conscious attempt has been made to misguide the investors.