The bank has earned a net profit of Rs 3.55 billion in the last FY. It was 38.01 percent higher compared to Rs 2.57 billion of the review period of the previous FY.
The bank's net interest income increased to Rs 6.96 billion from Rs 6.35 billion in the previous FY. In the last FY, the bank earned Rs 1.32 billion from net fees and commission, which was Rs 1.19 billion in the previous year. The bank's operating profit increased to Rs 5.16 billion from Rs 3.57 billion in the previous FY.
The bank's ability to pay dividend has also increased during the review period. After the regulatory adjustment, the distributable profit of the bank has increased to Rs 2.83 billion compared to Rs 2.10 billion of the previous FY. Based on the bank's paid-up capital, the distributable profit per share is Rs 20.85, which presents a strong foundation of attractive dividend for the investors.
The business size of the bank has also expanded compared to the corresponding period of the previous FY. The bank has a paid-up capital of Rs 15.58 billion with 8.25 percent preference shares. The total deposit of the bank has increased from Rs 223 billion to Rs 249 billion. Similarly, loan extensions to customers increased from Rs 176 billion to Rs 195 billion. The total assets of the bank have increased to Rs 291 billion.
The decline in the bank's bad debt from 3.01 percent to 2.87 percent and the decline in net non-performing loans to 1.02 percent in the review period shows a good improvement in risk management. However, the main challenges are the falling interest rate gap (3.39 per cent), business slowdown and the shift to digital technology. The bank aims to achieve sustainable growth through digital service expansion, improvement in deposit mix and effective loan recovery strategy.
