Garima Bikas Bank Q4: Revenue Down YoY but Profit Strengthens with Solid Margins

Garima Bikas Bank (GBBL) has published its Q4 audited report for FY 2024/25, showing weaker revenue growth but an improvement in net profit and earnings per share.

The bank posted total revenue of Rs. 8.42 billion, a -14.00% YoY decline compared to Rs. 10.25 billion in Q4 2023/24. Sequentially, revenue also remained lower than earlier quarters, reflecting subdued lending and interest income.

Gross profit stood at Rs. 3.64 billion, maintaining a gross margin of 43.26%, slightly better than last year’s 33.79%, indicating improved cost management.

Net income rose to Rs. 1.31 billion, up from Rs. 1.13 billion a year ago (+15.3% YoY). Sequentially, profit more than doubled from Q1’s Rs. 225.74 million, reflecting a strong recovery. The net margin improved to 15.56%, compared to 11.08% last year.

Profitability ratios were steady. ROA stood at 1.32%, almost unchanged from last year, while ROE remained strong at 14.65%, broadly in line with the sector average.

Earnings per share (EPS) increased to Rs. 23.07, compared to Rs. 20.00 a year earlier. The P/E ratio dropped to 18.57, reflecting a more attractive valuation than the prior year’s 19.25.

On the balance sheet side, book value per share stood at Rs. 164.17, while the market price was Rs. 428.36, trading at about 2.6x its book value.

In terms of asset quality, NPLs rose to 4.72%, compared to 2.89% last year, showing some deterioration. However, loan loss provision coverage was 107.58%, sufficient to cover bad loans.

The bank’s cost of funds declined to 4.84% from 6.64% a year ago, helping profitability. Its net interest spread stood at 4.37%, while the credit-to-deposit ratio was 85.13%, well within NRB norms.

The company did not declare a dividend in Q4, compared to Rs. 5.00 per share last year.