Kathmandu: Machhapuchchhre Bank Limited (MBL) has reported a net profit of Rs. 41.79 crore for the first quarter of fiscal year 2082/83, marking a 16.95% decline compared to Rs. 50.32 crore earned during the same period last year. The drop in profitability was mainly attributed to a surge in impairment charges and a sharp fall in operating profit.
The bank’s net interest income stood at Rs. 145.89 crore, down by 1.60% from Rs. 148.27 crore in Q1 2081/82. Meanwhile, operating profit plunged 40.15% to Rs. 59.84 crore, as impairment charges soared to Rs. 46.08 crore, compared to a reversal of Rs. 4.34 crore in the same quarter of the previous year.
Personnel expenses increased modestly by 3.20% to Rs. 70.31 crore.
On the balance sheet side, deposits rose by 5.08% to Rs. 1.93 kharba, while loans and advances grew by 5.10% to Rs. 1.48 kharba. The bank’s reserves increased by 5.78% to Rs. 6.68 arba. However, retained earnings turned negative at Rs. -11.42 crore, down from Rs. 93.63 crore last year, resulting in a distributable loss after regulatory adjustments.
The capital adequacy ratio decreased to 8.73% from 9.38%, but the cost of funds improved significantly, falling 26.33% to 4.03%.
Earnings per share (EPS) stood at Rs. 13.83, down from Rs. 17.32, while net worth per share dropped to Rs. 154.61. MBL’s shares were priced at Rs. 209.40 at the end of the quarter, giving the stock a price-to-earnings (P/E) ratio of 15.14 times.
Key Financial Highlights (Q1 FY 2082/83)
| Particulars | Q1 2082/83 | Q1 2081/82 | Change |
|---|---|---|---|
| Paid-Up Capital | Rs. 12.09 Arba | Rs. 11.62 Arba | +4.00% |
| Share Premium | Rs. 3.09 Crore | Rs. 3.09 Crore | 0.00% |
| Retained Earnings | Rs. -11.42 Crore | Rs. 93.63 Crore | — |
| Reserves | Rs. 6.68 Arba | Rs. 6.32 Arba | +5.78% |
| Deposits | Rs. 1.93 Kharba | Rs. 1.84 Kharba | +5.08% |
| Loans & Advances | Rs. 1.49 Kharba | Rs. 1.41 Kharba | +5.10% |
| Net Interest Income | Rs. 145.89 Crore | Rs. 148.27 Crore | -1.60% |
| Personnel Expenses | Rs. 70.31 Crore | Rs. 68.13 Crore | +3.20% |
| Impairment Charges | Rs. 46.08 Crore | Rs. -4.34 Crore | — |
| Operating Profit | Rs. 59.84 Crore | Rs. 99.99 Crore | -40.15% |
| Net Profit | Rs. 41.79 Crore | Rs. 50.32 Crore | -16.95% |
| Capital Adequacy Ratio | 8.73% | 9.38% | -6.93% |
| Cost of Funds | 4.03% | 5.47% | -26.33% |
| EPS | Rs. 13.83 | Rs. 17.32 | -20.14% |
| Net Worth per Share | Rs. 154.61 | Rs. 162.70 | -4.97% |
| Market Price (End of Quarter) | Rs. 209.40 | — | — |
Summary:
Machhapuchchhre Bank’s Q1 performance reflected a cautious outlook amid rising impairment costs and declining profitability. However, the steady growth in deposits and improved funding efficiency indicate stability in its core banking operations.