Prabhu Bank’s Financial Report: Net Profit Surges by 85%
Author
NEPSE trading
Prabhu Bank Limited has released its unaudited financial report for the second quarter of FY 2081/82, showcasing a significant leap in profitability.
Net Profit Increases by 85%
As of Poush 2081, the bank has recorded a net profit of NPR 1.34 billion, marking an impressive growth of 85.49% compared to NPR 720.34 million in the same period last year. This remarkable increase is primarily attributed to a reduction in impairment charges and a rise in fee and commission income.
Growth in Net Interest and Other Income
The bank's net interest income increased by 2.12%, reaching NPR 4.87 billion. Similarly, fee and commission income grew by 17.18%, totaling NPR 1.12 billion. Total operating income also saw an 11.10% growth, reflecting the bank’s effective revenue management.
Impairment Charges Decline, Boosting Operating Profit
The bank’s impairment charges decreased significantly from NPR 1.26 billion to NPR 814.22 million, contributing to a 45.95% increase in operating profit, which stood at NPR 2.52 billion during the review period.
Earnings Per Share and Other Financial Indicators
The bank's Earnings Per Share (EPS) improved from NPR 6.12 to NPR 11.35, indicating enhanced profitability for shareholders. Additionally, the net worth per share stands at NPR 144.79, further strengthening the bank’s financial position.
Decline in Base Rate and Credit-to-Deposit Ratio
The bank's base rate decreased from 9.42% to 7.26%, indicating lower borrowing costs for customers. However, the Credit-to-Deposit (CD) Ratio dropped from 81.90% to 74.95%, suggesting a conservative approach to lending during the period.
Prabhu Bank has showcased outstanding operational efficiency and profitability growth in the second quarter. While the growth in net interest income was modest, other income streams such as fee and commission income significantly contributed to the improved performance.
Despite strong financial indicators, the slight decline in deposits and loans suggests the need for strategic measures to drive growth in these critical areas. The bank could further strengthen its revenue base by focusing on digital banking services and improving customer engagement.
Prabhu Bank's financial report provides a strong sense of optimism for its investors. The reduction in the base rate is expected to create more lending opportunities, while the sharp growth in profitability solidifies shareholder confidence in the bank’s future performance.
