Machhapuchhre Bank Limited (MBL) has achieved a significant milestone by entering the ‘1 Billion Club’ after reporting a net profit of 1 Arba 1 Crore 11 Lakh in its second-quarter financial report. This represents a substantial 25.24% growth compared to the 80 Crore 73 Lakh earned during the same period last year.
Key Financial Performance Highlights
The bank’s profit growth was primarily driven by an increase in interest income and fee/commission income. However, rising impairment charges have put some pressure on the overall operating profit. Here is a detailed breakdown of the second-quarter results:
- Net Profit: 1 Arba 1 Crore 11 Lakh (Up 25.24%)
- Interest Income: 2 Arba 94 Crore 10 Lakh (Up 4.16%)
- Fee and Commission Income: 82 Crore 7 Lakh (Increased from 67 Crore 21 Lakh)
- Operating Profit: 1 Arba 45 Crore 68 Lakh (Down 10.22% from the previous year)
- Impairment Charges: 57 Crore 42 Lakh (Increased from 20 Crore 47 Lakh)
Improved Asset Quality and Business Volume
The bank successfully managed to lower its bad loan ratio (Non-Performing Loan) by 0.29 percentage points, bringing it down to 4.25%. During the review period, Machhapuchhre Bank collected total deposits of 2 Arba 4 Crore 4 Crore and maintained a loan portfolio of 1 Arba 54 Arba.
Dividend Capacity and Shareholder Indicators
As of the end of the second quarter, the bank’s distributable profit stands at 43 Crore 63 Lakh. Based on this figure, the bank has a dividend distribution capacity of 7.22%. Other key shareholder metrics include:
- Earnings Per Share (EPS): 16.73 (An increase of 3.37)
- Net Worth Per Share: 161.60
- Price-to-Earnings (P/E) Ratio: 13.61 times
- Base Rate: 5.48%
Capital and Reserve Position
The bank maintains a strong capital base with a paid-up capital of 12 Arba 8 Crore 62 Lakh. Its reserves and surplus are categorized as follows:
- Reserve Fund: 6 Arba 98 Crore 18 Lakh
- Retained Earnings: 43 Crore 63 Lakh
- Share Premium: 3 Crore 8 Lakh
Disclaimer: This news is originally written in Nepali, translated with the help of AI and editorially reviewed.