LBBL
Lumbini Bikas Bank Limited (LBBL) Q4 Earnings: Revenue Down but Profitability Recovers
Lumbini Bikas Bank Limited (LBBL) closed FY 2024/25 Q4 with Rs. 5.59 billion in revenue and Rs. 379.88 million in net profit, marking a recovery from weak earlier quarters. Although annual earnings remain below last year’s levels, gross margins improved, cost of funds declined, and asset quality stabilized with a lower NPL ratio compared to Q3. With an EPS of Rs. 10.48, a rising book value, and market confidence reflected in higher share price, LBBL shows resilience but still faces the challenge of sustaining revenue growth.
Sandeep Chaudhary
2 min read
Lumbini Bikas Bank Limited (LBBL) has published its audited Q4 results for FY 2024/25, showing weaker revenue compared to last year but a rebound in profitability supported by lower funding costs, improved margins, and stable asset quality.
The bank reported total revenue of Rs. 5.59 billion, down 23.71% year-over-year from Rs. 6.91 billion in Q4 2023/24. Revenues remained under pressure throughout the fiscal year, with a sequential decline across the first three quarters, though Q4 posted partial recovery.
Gross profit stood at Rs. 1.85 billion, yielding a margin of 33.22%, up from 26.15% last year, reflecting better efficiency. Net income came in at Rs. 379.88 million, lower than last year’s Rs. 603.78 million, but much improved compared to weaker quarters this year (only Rs. 49.78 million in Q3). The net margin was 6.80%, higher than Q3 but still below last year’s 8.74%.
For shareholders, EPS (annualized) stood at Rs. 10.48, compared to Rs. 17.16 in Q4 2023/24. The PE ratio was 45.85, suggesting a relatively high valuation against earnings. Book Value per Share improved slightly to Rs. 192.73, while the market price per share closed at Rs. 480.69, higher than last year’s Rs. 416.60, reflecting sustained investor demand. Dividend distribution has not yet been declared this year (last year: Rs. 7.00 per share).
Financial Sector Indicators
LBBL’s financial sector metrics highlight recovery and stability:
Capital Fund to RWA was 13.50%, slightly up from 13.30% last year, ensuring adequate capital adequacy.
NPL Ratio stood at 4.55%, higher than last year’s 3.29% but down from Q3’s 7.18%, showing improving loan recovery trends.
Loan Loss Provision coverage rose to 112.80%, up from 110.36% last year, indicating full coverage of non-performing loans.
Cost of Funds decreased sharply to 5.35%, from 7.59% last year, easing expense pressures.
Credit-to-Deposit Ratio was stable at 84.42%, compared to 82.36% a year ago.
Base Rate fell to 6.82%, from 9.40% last year, lowering borrowing costs for customers.
Net Interest Spread stood at 4.30%, maintaining profitability in core lending activities.
Net Liquid Asset was 28.33%, consistent with last year’s 28.40%, reflecting healthy liquidity.
Written by
Sandeep Chaudhary