Laxmi Sunrise Bank’s Financial Report: Modest Profit Growth, Operating Profit Improves
Author
NEPSE trading
Laxmi Sunrise Bank Limited has published its unaudited financial report for the second quarter of FY 2081/82. The report reveals modest growth in net profit while some key indicators show mixed performance.
Net Profit Increases by 9.71%
As of Poush 2081, the bank has reported a net profit of NPR 1.16 billion, a 9.71% increase compared to NPR 1.05 billion in the same period last year. A reduction in impairment charges significantly contributed to this profit growth.
Net Interest Income Declines, Fee and Commission Income Rises
The bank’s net interest income dropped by 8.27%, reaching NPR 5.19 billion. However, fee and commission income increased by 12.28%, totaling NPR 998.97 million, offsetting some of the decline in interest income.
Impairment Charges Decline, Boosting Operating Profit
Impairment charges decreased significantly from NPR 2.73 billion to NPR 1.92 billion, resulting in a 24.08% increase in operating profit, which reached NPR 1.79 billion during the review period.
Key Financial Indicators Improve
Earnings Per Share (EPS) increased from NPR 9.14 to NPR 9.55, reflecting better returns for shareholders.
Net Worth Per Share rose to NPR 172.50, indicating improved financial strength.
The Credit-to-Deposit Ratio stood at 79.19%, indicating balanced liquidity management.
Challenges and Opportunities
The base rate declined from 9.99% to 7.17%, enabling the bank to offer loans at lower interest rates. However, the decline in net interest income could impact long-term revenue generation.
Laxmi Sunrise Bank has successfully reduced impairment charges and improved operating profit, which has supported its overall profitability. However, the decline in interest income and total operating income presents challenges for sustained growth.
The bank should focus on increasing interest income by exploring new lending opportunities.
Strengthening fee-based income through digital banking and improved customer engagement will be essential.
Laxmi Sunrise Bank’s financial performance offers a moderately positive outlook for investors. The reduction in impairment charges and improved EPS are encouraging, but the decline in interest income calls for careful monitoring and proactive strategies to ensure long-term growth.
