शाइन रेसुङ्गा डेभलपमेन्ट बैंकको चौथो त्रैमासिक वित्तीय विवरणShine Resunga Development Bank Q4 Unaudited Financial Results

Unaudited Financial Results (Quarterly)

For the Quarter ended 32nd Ashad 2083

Condensed Statement of Financial Position

For the Quarter ended 32nd Ashad 2083

Amount in NPR

Particulars This Quarter Ending Immediate Previous year Ending (Audited)

Assets Amount in NPR Amount in NPR

Cash and cash equivalent	1,644,969,328	2,117,894,019
Due from Nepal Rastra Bank	3,489,669,377	3,273,571,333
Placement with Bank and Financial Institutions	-	-
Derivative financial instruments	-	-
Other trading assets	-	-
Loan and advances to B/FIs	688,357,731	1,314,092,375
Loan and advances to Customers	63,267,778,525	56,907,122,137
Investment Securities	17,234,552,598	15,293,576,045
Current Tax Assets	-	114,086,111
Investment in Subsidiaries	-	-
Investment in Associates	-	-
Investment Property	206,598,395	151,994,995
Property & equipment	655,698,235	715,113,563
Goodwill and Intangible assets	134,988,727	136,856,902
Deferred tax assets	10,549,296	-
Other assets	371,248,020	328,899,067
Total Assets	87,704,410,232	80,353,206,546

Liabilities

Due to Bank and Financial Institutions	266,971,920	725,979,531
Due to Nepal Rastra Bank	-	-
Derivative Financial Instruments	-	-
Deposit from customer	77,852,662,136	71,767,128,445

Borrowings - 365,678

Current Tax Liabilities	17,490,456	-
Provisions	-	-
Deferred Tax Liabilities	-	26,957,042
Other Liabilities	557,993,186	449,067,316
Debt Securities Issued	1,000,000,000	-
Subordinated Liabilities	-	-
Total Liabilities	79,695,117,698	72,969,498,012

Equity

Share Capital	5,021,972,730	4,875,701,680
Share Premium	-	-
Retained Earnings	846,498,351	668,505,485
Reserves	2,140,821,453	1,839,501,370
Total Equity Attributable to equity holders	8,009,292,534	7,383,708,534
Non-controlling interest	-	-
Total Equity	8,009,292,534	7,383,708,534
Total Liabilities and equity	87,704,410,232	80,353,206,546

Statement of Distributable Profit or Loss

For the Quarter ended 32nd Ashad 2083

Amount in NPR

Particulars Current year Previous Year Corresponding (Audited)

Net profit or (Loss) as per statement of profit or Loss 1,181,279,437 645,627,987

Appropriations:

a. General reserve	(236,255,888)	(129,125,597)
b. Foreign exchange fluctuation fund	(34,321)	(5,983)
c. Capital redemption reserve	-	-
d. Corporate social responsibility fund	(11,812,794)	(6,456,280)
e. Employees' training fund	(15,287,957)	(13,033,541)
f. Other	17,194,430	12,727,766
Profit or (loss) before regulatory adjustment	935,082,907	509,734,351

Regulatory adjustment :

a. Interest Receivable(-)/ previous accrued interest received(+)	(58,566,373)	89,940,140
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(-)/Reversal(+)	(27,176,112)	6,263,017
e. Deffered tax assets recognized (-)/ reversal(+)	(37,506,338)	(17,142,322)
f. Goodwill recognized (-)/ impairment of Goodwill (+)	-	-
g. Bargain purchase gain recognized(-)/reversal(+)	-	-
h. Actuarial loss recognized (-)/reversal(+)	-	(2,868,926)
i. Other	-	-
Net profit for the quarter end available for distribution	811,834,084	585,926,261
Opening Retained Earnings Shrawan	1,	2082	668,505,485	417,351,437

Adjustment in Opening RE due to NFRS 16 - 43,923,063

Distribution

Bonus Share Issued	(146,271,050)	(142,010,729)
Cash Dividend Paid	(487,570,168)	(236,684,548)
Total Distributable Profit or (Loss) as on Quater end Ashad	32,	2083	846,498,351	668,505,485
Distributable Profit Per share	16.86	13.71

1. The above financial statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) and in compliance with NRB directives. In line with the Expected Credit Loss (ECL) Guideline and the Guidance note on Interest Income Recognition 2025, the Bank has de-recognized interest income accrued on loans and advances classified under Stage 3. For impairment of credit exposures, the Bank has applied the higher of the total ECL provision as per NFRS 9 and the existing regulatory provision as per the Unified Directives.

2. Previous year figures have been regrouped, rearranged and restated wherever necessary.

3. If the Statutory and Supervisory authority notify any remarks to change, the unaudited statement of financial position and statement of profit or loss could be changed accordingly.

4 As of the current fiscal year, the Debenture Redemption Reserve has not been created in accordance with NRB Directives no 16(5)2.

Statement of Profit or Loss

This Quarter Ending Upto This Quarter (YTD) Previous Year Corresponding This Quarter Ending Previous Year Corresponding Upto This Quarter (YTD)

Interest Income	1,536,992,385	6,009,961,826	1,632,624,714	6,385,230,245
Interest Expense	770,291,529	3,183,258,625	919,522,255	3,740,871,184
Net Interest income	766,700,856	2,826,703,201	713,102,459	2,644,359,061
Fees and commission income	97,243,781	352,413,752	106,078,773	337,334,266
Fees and commission expense	15,704,966	40,766,091	13,390,069	35,438,220
Net Fees and commission income	81,538,815	311,647,661	92,688,705	301,896,046
Net Interest, fee and commission income	848,239,671	3,138,350,862	805,791,164	2,946,255,107
Net trading income	-	-	-	-
Other operating income	1,883,140	29,561,514	2,285,723	31,500,413
Total operating income	850,122,811	3,167,912,376	808,076,887	2,977,755,520
Impairment charge/(reversal) for loans and other losses	(122,455,682)	207,956,558	273,452,000	950,401,153
Net operating income	972,578,493	2,959,955,818	534,624,887	2,027,354,367

Operating expense

Personnel expenses	278,694,983	804,253,881	271,402,112	714,313,811
Other operating expenses	79,947,114	295,749,822	35,912,250	278,967,893
Depreciation & Amortisation	33,458,474	122,078,758	63,366,386	122,957,115
Operating profit	580,477,922	1,737,873,357	163,944,140	911,115,550
Non operating income	-	-	-	1,100,000
Non operating expense	29,283,421	60,386,749	4,584,247	15,734,530
Profit before income tax	551,194,501	1,677,486,608	159,359,892	896,481,019
Income Tax Expense	158,319,538	496,207,171	27,746,322	250,853,032
Current Tax	195,825,876	533,713,509	58,356,757	281,463,467
Deferred Tax	(37,506,338)	(37,506,338)	(30,610,435)	(30,610,435)
Profit/(loss) for the period	392,874,963	1,181,279,437	131,613,570	645,627,987

Statement of Other Comprehensive Income

This Quarter Ending Upto This Quarter (YTD) Previous Year Corresponding This Quarter Ending Previous Year Corresponding Upto This Quarter (YTD)

Profit/(loss) for the period	392,874,963	1,181,279,437	131,613,570	645,627,987
Other Comprehensive Income	(48,830,688)	(47,013,652)	3,027,587	39,272,484
Total Comprehensive Income	344,044,275	1,134,265,785	134,641,157	684,900,471
Basic earnings per share	23.52	13.24
Diluted earnings per share	23.52	13.24

Profit attributable to:

Equity holders of the Bank	344,044,275	1,134,265,785	134,641,157	684,900,471
Non-controlling interest	-	-	-	-
Total	344,044,275	1,134,265,785	134,641,157	684,900,471

Ratios as per NRB Directive

Current Year This Quarter Ending Current Year Upto This Quarter (YTD) Previous Year Corresponding (Audited) This Quarter Ending Previous Year Corresponding (Audited) Upto This Quarter (YTD)

Capital fund to RWA 13.70% 12.55%

Tier 1 Capital to RWA 10.85% 11.31%

CET 1 Capital to RWA 10.85% 11.31%

Non-performing loan (NPL) to Total Loan 4.93% 4.27%

Total Loan loss provision to Total NPL 84.39% 98.87%

Cost of Funds 3.68% 4.85%

Credit to Deposit Ratio 84.18% 82.60%

Base Rate 5.38% 6.41%

Interest Rate Spread 4.01% 4.18%

Return on Equity as per NRB Directives 15.35% 8.74%

Return on Assets as per NRB Directives 1.41% 0.80%

5. Detail Interim Financial Reports are published in https://srdb.com.np/Financial-Highlights.

Disclosure as per Securities Registration and Issuance Regulation, 2073 Related to Rule 26(1) of Annexure 14

For 4th Quarter of F/Y 2080/081

1. Financial Statement:

Statement of Financial Position and Statement of Profit or Loss as per Nepal Financial Reporting Standard (NFRS) including key financial indicators and ratios along with this report. There has been no any related party transaction during the period.

Key Financial Indicators and Ratios:

Earnings per share NPR	23.52	17.64
Net Worth per Share NPR	159.48	1,746.41

Liquidity Ratio 27.32% Capital Adequacy Ratio 13.70%

2. Management Analysis:

a. Financial indicators during the period were at satisfactory level.

b. Major areas of focus;

• Maintaining quality of credit portfolio and managing non-performing loans

• Operational efficiency for customer centric services

• Skill enhancement of human resources

• Promotion of Digital Service

• Mitigating Cyber Security Risks

• Mitigating AML/CFT related Risks

c. As per the current statement, there is no situation which might have material effect on financial position.

3. Details relating to Legal Action:

a. Except for the lawsuit in the normal course of business there are no material cases filed by or against the Institution.

b. No cases have been reported regarding filing by or filed against the promoter or director of Institution for non-compliance of prevailing laws or commission of criminal offence during the period.

c. No case shave been filed against any promoter or director for financial crime.

4. Analysis of Stock Performance of Development Bank:

a. Share price and transaction are determined as per open market competition.

b. Maximum, minimum and closing share price including total share transaction number and days of transaction during the period were;

Max. Share Price : NPR 420.00 Min. Share Price : NPR 396.40

Closing price of the Share : NPR 415.00 Number of days traded : 64 days

Total volume of trading of share : 10,50,937 share

(source: website of Nepal Stock Exchange Limited)

5. Problems and Challenges:

a. Internal

• Operational efficiency.

• Quality of Risk Assets.

• Limited avenues for fee based income.

b. External

• Slow demand for credit.

• Credit recovery.

• Cyber security and digital risks.

c. Strategy

• Maintaining operational and digital service efficiency.

• Regular investment on skill enhancement of the HR and educate customer about financial literacy and digital risk.

• Process automation of services internally as well as externally.

• Improving Comprehensive risk management system for adequate mitigation of risks including AML/CFT Strategy.

• Efficient management of NPL and NBA.

6. Corporate Governance:

To meet the provision regarding Corporate Governance, Development Bank has strictly followed all the rules & regulation issued to BFIs through Unified Directives, Circulars, BAFIA, Companies Act, SEBON Rules & Regulation and all other rules/regulations issued to BFIs. Development Bank has setup different committees like Audit Committee, Risk Management Committee, Employee Services & Facilities Committee, and Money Laundering Prevention Committee which are active in their respective field and chaired by non-executive member of Board of Directors. Similarly, Recruitment Committee, Assets Liability Management Committee and Corporate Governance Cell and other relevant committees are formed at staff level and are active in their respective field. Issues raised &recommendations made by NRB, internal &external auditor have been followed up strictly & in effective manner for better performance of Development Bank.

7. Declaration by CEO:

I, as at the date, hereby individually accept responsibility for the accuracy of the information and details contained in this report. Also hereby declare that to the best of my knowledge and belief, the information contained in this report are true, accurate and complete. No material information for the investors has been concealed.