Standard Chartered Bank’s Net Profit Declines by 11%, EPS Drops as Well
Author
NEPSE trading
Standard Chartered Bank Nepal, one of the leading foreign investment commercial banks in the country, has witnessed a notable decline in its financial performance during the third quarter of the fiscal year 2081/82.
According to the recently published quarterly report, the bank has earned a net profit of NPR 2.17 billion (Rs. 2,173,776 thousand) up to the third quarter. This is a decrease of 11.17% compared to the NPR 2.44 billion profit recorded in the same period last fiscal year.
Key Financial Highlights:
Net Interest Income:
Dropped by 17.33%, from Rs. 3.92 billion to Rs. 3.24 billion.Total Operating Income:
Fell by 10.47%, from Rs. 5.43 billion to Rs. 4.86 billion.Operating Profit:
Declined by 5.34% to Rs. 3.32 billion from Rs. 3.50 billion.Distributable Profit:
Decreased by 19.02%, from Rs. 1.81 billion to Rs. 1.47 billion.Earnings Per Share (EPS):
Dropped by Rs. 5.74, from Rs. 34.6 to Rs. 28.86.Net Worth Per Share:
Currently stands at Rs. 208.40.
Capital, Reserves & Loan Status:
Paid-up Capital:
Rs. 10.04 billion (6.5% increase from previous year).Reserves:
Rs. 9.41 billion (up by 9.16%).Retained Earnings:
Fell by over 40% to Rs. 1.47 billion.Customer Deposits:
Grew by 9% to Rs. 122.6 billion.Loans & Advances to Customers:
Decreased by 4.79% to Rs. 77.25 billion.Non-Performing Loan (NPL) Ratio:
Improved from 2.14% to 1.44%, indicating better credit management.
Cost-Side Developments:
Cost of Funds:
Dropped from 4.42% to 3.30%.Base Rate:
Decreased from 6.53% to 5.09%.
Summary:
While Standard Chartered Bank has shown improvement in controlling credit risk (reflected by a lower NPL ratio), the significant decline in net interest income has led to a sharp drop in profitability. Both distributable profit and EPS have decreased, which may affect shareholder returns. Nevertheless, the bank remains financially strong with a solid capital base and growing reserves.
