महालक्ष्मी विकास बैंकको प्रथम त्रैमासिक अपरिष्कृत वित्तीय विवरण

Unaudited Financial Results (Quarterly)

1st Quarter ended of Fiscal Year 2083/84

Condensed Statement of Financial Position

As on Quarter ended 31st Ashwin 2083

Amount in NPR

Assets	This Quarter Ending	Immediate Previous Year Ending
Cash and cash equivalent	1,378,142,455	1,540,468,558
Due from Nepal Rastra Bank	2,296,473,307	2,038,085,775
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loan and advances to B/FIs	2,206,908,552	2,792,871,923
Loans and advances to customers	43,955,193,766	43,341,360,666
Investment securities	13,336,630,245	13,152,928,333
Current tax assets	91,449,175	68,278,220
Investment in subsidiaries	-	-
Investment in associates	6,466,400	6,466,400
Investment property	520,838,524	520,838,524
Property and equipment	548,113,052	602,336,552
Goodwill and Intangible assets	10,392,645	10,985,185
Deferred tax assets	145,542,836	120,104,504
Other assets	1,002,780,457	862,290,782
Total Assets	65,498,931,414	65,057,015,421
Liabilities
Due to Bank and Financial Institutions	694,421,967	641,403,520
Due to Nepal Rastra Bank	-	-
Derivative financial instruments	-	-
Deposits from customers	55,171,952,391	55,009,924,544
Borrowing	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred tax liabilities	-	-
Other liabilities	1,114,958,399	947,200,180
Debt securities issued	995,843,833	995,843,833
Subordinated Liabilities	-	-
Total liabilities	57,977,176,591	57,594,372,078
Equity
Share capital	4,511,281,066	4,511,281,066
Share premium	-	-
Retained earnings	476,260,865	465,198,925
Reserves	2,534,212,892	2,486,163,352
Total equity attributable to equity holders	7,521,754,823	7,462,643,343
Non-controlling interest	-	-
Total equity	7,521,754,823	7,462,643,343
Total liabilities and equity	65,498,931,414	65,057,015,421
Net assets value per share	166.73	165.42

Condensed Statement of Profit or Loss

As on Quarter ended 31st Ashwin 2083

Amount in NPR

	Particulars Current Year This Quarter Current Year Upto	Particulars Current Year This Quarter Current Year This Quarter (YTD)	Previous Year Corresponding This Quarter Previous Year Corresponding Upto	Previous Year Corresponding This Quarter Previous Year Corresponding This Quarter (YTD)
Interest income	1,028,006,815	1,028,006,815	1,132,788,952	1,132,788,952
Interest expense	517,515,462	517,515,462	630,817,702	630,817,702
Net interest income	510,491,353	510,491,353	501,971,250	501,971,250
Fee and commission income	56,280,390	56,280,390	33,246,661	33,246,661
Fee and commission expense	5,350,461	5,350,461	3,698,991	3,698,991
Net fee and commission income	50,929,930	50,929,930	29,547,671	29,547,671
Net interest, fee and commission income	561,421,282	561,421,282	531,518,921	531,518,921
Net trading income	67,269	67,269	71,160	71,160
Other operating income	24,410,745	24,410,745	74,828,459	74,828,459
Total operating income	585,899,295	585,899,295	606,418,540	606,418,540
Impairment charge/(reversal) for loans and other losses	106,784,632	106,784,632	157,886,686	157,886,686
Net operating income	479,114,663	479,114,663	448,531,854	448,531,854
Operating expense	309,077,063	309,077,063	267,688,715	267,688,715
Personnel expenses	200,431,670	200,431,670	171,949,722	171,949,722
Other operating expenses	73,909,464	73,909,464	58,476,454	58,476,454
Depreciation & Amortization	34,735,928	34,735,928	37,262,538	37,262,538
Operating Profit	170,037,600	170,037,600	180,843,139	180,843,139
Non operating income	297,496	297,496	149,739	149,739
Non operating expense	1,095,682	1,095,682	41,689,397	41,689,397
Profit before income tax	169,239,414	169,239,414	139,303,481	139,303,481
Income tax expense	50,771,824	50,771,824	41,791,044	41,791,044
Current Tax	50,771,824	50,771,824	41,791,044	41,791,044
Deferred Tax Income / Expenses	-	-	-	-
Profit for the year	118,467,590	118,467,590	97,512,436	97,512,436

Condensed Consolidated Statement of Comprehensive Income

Profit/(Loss) for the Period	118,467,590	118,467,590	97,512,436	97,512,436
Other Comprehensive Income	(59,356,109)	(59,356,109)	(49,174,418)	(49,174,418)
Total Comprehensive Income	59,111,480	59,111,480	48,338,019	48,338,019
Earnings per Share
Basic earnings per share	10.50	9.08
Diluted earnings per share	10.50	9.08
Profit attributable to:
Equity holders of the Bank	59,111,480	59,111,480	48,338,019	48,338,019
Non-controlling interest	-	-	-	-
Total income	59,111,480	59,111,480	48,338,019	48,338,019

Note:

. Above Financial Statements are prepared in accordance with Nepal Financial Reporting Standards (NFRS).

. Loan & Advances Includes Staff loans and accrued interest receivable on loans and are presented net of loan impairments.

. Bank has assessed and measured impairment loss on Loan & Advances at higher of amount derived as per norms prescribed by NRB and as per NFRS 9.

. Personal Expenses includes employee bonus calculated as per Bonus Act, 2030.

. Previous Quarter ending figure have been restated, regrouped, reclassified to make them comparable, which might vary from previous quarter published figure.

. The unaudited financial figures are subject to change from external auditor and regulatory authority.

. Detailed interim report has been published in Bank's website www.mahalaxmibank.com.

Disclosure as prescribed by Securities Registration and Issuance Regulation, 2073

(Related to Sub rule (1) of Rule 26), for the First Quarter of Fiscal Year 2083/84)

Particulars	Upto This Quarter Corresponding	Upto This Quarter
Net profit or (loss) for the period end Ashwin 83	118,467,590	97,512,436
Appropriations:
a. General reserve	(23,693,518)	(19,502,487)
b. Capital redemption reserve	(50,000,000)	(41,666,667)
c. Exchange fluctuation fund	(8,995)	(359,912)
d. Corporate social responsibility fund	(1,184,676)	(975,124)
e. Employees' training fund	(1,999,034)	(3,482,806)
f. Other-
Investment Adjustment Reserve	-	-
Fair value reserve	(16,118,681)	-
CSR expense reversal	4,342,933	953,880
Profit or (loss) before regulatory adjustment	29,805,618	32,479,320
Regulatory adjustment :
a. Interest receivable (-)/previous accrued interest received (+)	(17,272,286)	(44,477,328)
b. Short loan loss provision in accounts (-)/ reversal (+)	-	-
c. Short provision for possible losses on investment (-)/reversal (+)	-	-
d. Short loan loss provision on Non Banking Assets (-)/resersal (+)	-	(17,472,256)
e. Deferred tax assets recognised (-)/ reversal (+)	-	-
f. Goodwill recognised (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognised (-)/ reversal (+)	-	-
h. Actuarial loss recognised (-)/reversal (+)	-	-

i. Other (+/-)

Fair Value Gain On Investment	-	2,444,602
Interest Capitalized Reserve	(1,471,393)	-
Net profit for the period end Ashwin 2083	11,061,940	(27,025,662)
Opening Retained Earning	465,198,925	418,214,217

Adjustment(+/-)

Distribution:
Bonus Share issued	-	-
Cash Dividend Paid	-	-
Total Distributable Profit or (Loss) as on Ashwin Quarter End, 2083	476,260,865	391,188,555
Distributable Profit/Loss per Share (Annualized)	11.29	7.22

Regulatory Ratios as per NRB Unified Directive

Particulars Current Year Upto This Quarter (YTD) Previous Year Corresponding Upto This Quarter (YTD)

Capital Fund to RWA (%) 16.92% 17.60%

Tier 1 Capital to RWA (%) 13.57% 13.86%

CET 1 Capital to RWA (%) 13.57% 13.86%

Non-Performing Loan (NPL) to Total Loan (%) 6.49% 5.50%

Net Non-Performing Loan (NPL) to Total Loan (%) 1.61% 0.93%

Total Loan Loss Provision to Total NPL (%) 98.20% 112.21%

Cost of Funds (%) 3.58% 4.30%

Credit to Deposit Ratio (CD Ratio as per NRB) (%) 86.45% 82.98%

Base Rate (%) 5.71% 6.45%

Interest Rate Spread (%) 4.14% 4.36%

Return on Equity 6.32% 5.48%

Return on Assets 0.73% 0.60%

1. Financial Detail

a) Quarterly statement of financial position and statement of profit or loss has been published along with this detail.

b) Major Financial Indicators

1 Earnings per Share (Annualized) 10.50

2 Price Earnings ratio 35.55

3 Net Worth per Share 166.73

4 Return on Total Asset (Annualized) 0.73%

5 Return on Equity (Annualized) 6.32%

6 Liquidity Ratio 27.79%

2. Management Analysis:

The bank has posted a net profit of NPR 118,467,590 /- up to the first quarter of FY 2083/84, with a growth 21.49 percentage corresponding to the previous year corresponding quarter's results. The bank remains strong in terms of capital adequacy and liquidity. However, due to challenges in loan recovery amidst a difficult economic situation, the non-performing assets (NPA) have increased to 6.49%. Despite reduced interest rates, adequate liquidity, and a sound credit-to-deposit (CD) position, stagnant credit demand has affected overall business performance. Nevertheless, the bank remains committed to achieving its business targets, maximizing returns, and delivering excellent customer service.

3. Details relating to legal action

a) Case filed by or against the Bank in this year: No such information has been received

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.

4. Analysis of stock performance of the Bank

The Bank's share price and transaction are determined according to the demand and supply of shares in the market. Maximum, minimum and last share price of the Bank including total share transaction number, volume and days of transaction during the quarter are:

Maximum Share Price (Amount in NPR) 382.70

Minimum Share Price (Amount in NPR) 330.70

Last Share Price (Amount in NPR) 373.40

Transaction volume (No. of shares) 1,148,842

Transaction volume (Amount in NPR) 410,091,408.70

Transaction Days 61

5. Problems and Challenges

Internal:

i) Increased cost of operation.

ii) Sourcing and retention of quality workforce in the increased competitive banking industry.

iii) Challenge to manage operational risk and minimize risk relating to information technology.

External:

i) Increased level of operational risk in the industry.

ii) Challenge to recover the interest as a result of overall economic downturn and political instability.

iii) Subdued credit demand.

6. Strategy to overcome Problems and Changes

i) To revise strategy and planning according to the ongoing market scenario.

ii) Effective management of cost of deposit and total operating expense.

iii) Provide banking service to population still not within the Bank reach and mobilize deposit.

iv) Provide uninterrupted service through the use of information technology.

v) Introduction of customer-oriented & innovative products and services focusing on digital banking.

vi) Strengthening human resource capabilities to minimize various risk.

vii) Proper portfolio management targeting good quality loan customers.

viii) Focus on strengthening internal control and monitoring system and policy to cope with various risks.

7. Corporate Governance

The Bank is committed towards high standard of corporate governance, professionalism, ethical standard and compliance with superior standard in business practice. In order to maintain the superior standard of corporate governance, various committees are effectively functioning in the Bank. Further, Internal Audit Department of the Bank is also outsourced and it is functioning effectively. The Bank has been fully complying with the directives and guidelines issued by NRB.

8. Declaration of CEO

To the best of my knowledge, the information published in this report is true and fair. No material information for investors has been concealed. I personally take the responsibility for fair presentation of report.

सबल बैंक, सफल सहकार्य

Unaudited Financial Results (Quarterly)

1st Quarter ended of Fiscal Year 2083/84

Condensed Statement of Financial Position

As on Quarter ended 31st Ashwin 2083

Amount in NPR

Assets	This Quarter Ending	Immediate Previous Year Ending
Cash and cash equivalent	1,378,142,455	1,540,468,558
Due from Nepal Rastra Bank	2,296,473,307	2,038,085,775
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loan and advances to B/FIs	2,206,908,552	2,792,871,923
Loans and advances to customers	43,955,193,766	43,341,360,666
Investment securities	13,336,630,245	13,152,928,333
Current tax assets	91,449,175	68,278,220
Investment in subsidiaries	-	-
Investment in associates	6,466,400	6,466,400
Investment property	520,838,524	520,838,524
Property and equipment	548,113,052	602,336,552
Goodwill and Intangible assets	10,392,645	10,985,185
Deferred tax assets	145,542,836	120,104,504
Other assets	1,002,780,457	862,290,782
Total Assets	65,498,931,414	65,057,015,421
Liabilities
Due to Bank and Financial Institutions	694,421,967	641,403,520
Due to Nepal Rastra Bank	-	-
Derivative financial instruments	-	-
Deposits from customers	55,171,952,391	55,009,924,544
Borrowing	-	-
Current Tax Liabilities	-	-
Provisions	-	-
Deferred tax liabilities	-	-
Other liabilities	1,114,958,399	947,200,180
Debt securities issued	995,843,833	995,843,833
Subordinated Liabilities	-	-
Total liabilities	57,977,176,591	57,594,372,078
Equity
Share capital	4,511,281,066	4,511,281,066
Share premium	-	-
Retained earnings	476,260,865	465,198,925
Reserves	2,534,212,892	2,486,163,352
Total equity attributable to equity holders	7,521,754,823	7,462,643,343
Non-controlling interest	-	-
Total equity	7,521,754,823	7,462,643,343
Total liabilities and equity	65,498,931,414	65,057,015,421
Net assets value per share	166.73	165.42

Condensed Statement of Profit or Loss

As on Quarter ended 31st Ashwin 2083

Amount in NPR

	Particulars Current Year This Quarter Current Year Upto	Particulars Current Year This Quarter Current Year This Quarter (YTD)	Previous Year Corresponding This Quarter Previous Year Corresponding Upto	Previous Year Corresponding This Quarter Previous Year Corresponding This Quarter (YTD)
Interest income	1,028,006,815	1,028,006,815	1,132,788,952	1,132,788,952
Interest expense	517,515,462	517,515,462	630,817,702	630,817,702
Net interest income	510,491,353	510,491,353	501,971,250	501,971,250
Fee and commission income	56,280,390	56,280,390	33,246,661	33,246,661
Fee and commission expense	5,350,461	5,350,461	3,698,991	3,698,991
Net fee and commission income	50,929,930	50,929,930	29,547,671	29,547,671
Net interest, fee and commission income	561,421,282	561,421,282	531,518,921	531,518,921
Net trading income	67,269	67,269	71,160	71,160
Other operating income	24,410,745	24,410,745	74,828,459	74,828,459
Total operating income	585,899,295	585,899,295	606,418,540	606,418,540
Impairment charge/(reversal) for loans and other losses	106,784,632	106,784,632	157,886,686	157,886,686
Net operating income	479,114,663	479,114,663	448,531,854	448,531,854
Operating expense	309,077,063	309,077,063	267,688,715	267,688,715
Personnel expenses	200,431,670	200,431,670	171,949,722	171,949,722
Other operating expenses	73,909,464	73,909,464	58,476,454	58,476,454
Depreciation & Amortization	34,735,928	34,735,928	37,262,538	37,262,538
Operating Profit	170,037,600	170,037,600	180,843,139	180,843,139
Non operating income	297,496	297,496	149,739	149,739
Non operating expense	1,095,682	1,095,682	41,689,397	41,689,397
Profit before income tax	169,239,414	169,239,414	139,303,481	139,303,481
Income tax expense	50,771,824	50,771,824	41,791,044	41,791,044
Current Tax	50,771,824	50,771,824	41,791,044	41,791,044
Deferred Tax Income / Expenses	-	-	-	-
Profit for the year	118,467,590	118,467,590	97,512,436	97,512,436

Condensed Consolidated Statement of Comprehensive Income

Profit/(Loss) for the Period	118,467,590	118,467,590	97,512,436	97,512,436
Other Comprehensive Income	(59,356,109)	(59,356,109)	(49,174,418)	(49,174,418)
Total Comprehensive Income	59,111,480	59,111,480	48,338,019	48,338,019
Earnings per Share
Basic earnings per share	10.50	9.08
Diluted earnings per share	10.50	9.08
Profit attributable to:
Equity holders of the Bank	59,111,480	59,111,480	48,338,019	48,338,019
Non-controlling interest	-	-	-	-
Total income	59,111,480	59,111,480	48,338,019	48,338,019