Saptakoshi Development Bank Q4 Results: Net Profit Rs. 76.6M, EPS 9.18 as Bank Returns to Profitability
Author
Nepsetrading
Saptakoshi Development Bank Limited (SAPDBL) has released its audited financial report for the fourth quarter of fiscal year 2024/25. The results show a remarkable turnaround in profitability despite a slight decline in revenue growth.
The bank’s total revenue for Q4 stood at Rs. 581.70 million, slightly below Rs. 594.37 million in the same quarter last year, reflecting a YoY decline of 2.1%. Sequentially, however, revenue improved compared to Q3, showing signs of operational recovery.
Gross profit rose to Rs. 228.42 million, up from Rs. 179.59 million in the previous year. The gross profit margin also improved to 39.27%, compared to 30.22% a year ago, demonstrating stronger cost management and operational efficiency.
The biggest improvement was seen in profitability. SAPDBL posted a net income of Rs. 76.61 million in Q4, a sharp turnaround from heavy losses of Rs. 87.78 million in Q1 and Rs. 27.79 million in Q3. The net profit margin jumped to 13.17%, a significant improvement from -60.47% earlier in the fiscal year.
On an annualized basis, the bank’s EPS (Earnings Per Share) reached Rs. 9.18 compared to Rs. 2.70 last year, indicating a substantial improvement in shareholder value. Meanwhile, the PE ratio stood at 114.66, suggesting high market expectations relative to earnings.
Despite improvements, the book value per share dropped to Rs. 64.58, down from Rs. 78.85 a year ago. However, the market value per share surged to Rs. 1,052.91, from Rs. 430 last year, reflecting strong investor confidence in the bank’s recovery.
In the financial sector indicators, SAPDBL’s Capital Fund to RWA ratio stood at 8.77%, lower than 13.13% a year ago but still above the regulatory threshold. The NPL ratio improved to 9.10% compared to 12.91% in Q3, while loan loss provision coverage increased to 111.62%, signaling robust provisioning against bad loans. The cost of funds decreased to 4.30% from 6.18% last year, while the base rate dropped to 6.47%. The net interest spread remained healthy at 4.03%.
Overall, Saptakoshi Development Bank has staged a strong recovery with rising profitability, improved margins, and stronger loan provisioning despite a slight revenue decline. Investor optimism remains high as reflected in its soaring market price.
