The bank has earned a net profit of Rs 889.9 million in the review period. The net profit increased by 46.69 percent compared to Rs 606.6 million of the corresponding period of the previous FY.
Net interest income: Net interest income increased by 16.83 percent to Rs 2.42 billion from Rs 2.07 billion in the previous FY.
Impairment Charges: The bank's provisioning/impairment charge has come down to Rs 91.3 million from Rs 345.4 million of the previous FY. This shows that the bank's bad loan management and recovery have improved.
Improvement in dividend efficiency
As of mid-July 2018, the bank's net profit has reached Rs 492.3 million as against Rs 368.3 million in the previous year. Based on the current paid-up capital of the bank (Rs 3.73 billion), the bank has the capacity to distribute dividend up to 13.19 percent to its shareholders. In the previous FY, the bank's distributable earnings per share was Rs 10.36.
Deposit & Loan Expansion: Deposits collected from customers increased from Rs. 54.86 billion to Rs. 56.92 billion. Similarly, loans to customers increased from Rs 42.82 billion to Rs 45.87 billion.
Non-performing loans: The non-performing loan of the bank increased to 6.87 percent from 5.52 percent in the previous FY.
Cost of Funds: The bank's cost of funds has come down to 3.54 percent from 5.01 percent last year. Similarly, the base rate has also come down from 7.08 percent to 5.57 percent, which has given relief to the borrowers.
Deposit-Loan Ratio: The CD ratio of the bank stands at 83.37%, which indicates that the bank has sufficient liquidity to lend more.
