Agricultural Development Bank Limited (ADBL) has released its unaudited financial results for the fourth quarter of FY 2080/81, showing a strong year-on-year improvement in profitability.
By the end of the fiscal year, the bank posted a net profit of Rs. 3.82 Arba, up 48.88% from Rs. 2.57 Arba in the same period last year. This growth came despite a decline in net interest income, mainly due to a sharp reduction in impairment charges.
During the review period, net interest income fell by 6.93% and net fee and commission income dropped by 7.21%. Total operating income slipped by 1.84%, yet operating profit jumped 41.29% as impairment charges decreased significantly from Rs. 2.45 Arba to just Rs. 10 crore. The bank’s non-performing loan (NPL) ratio also improved to 3.26% from 3.91%, contributing to lower provisioning needs.
Earnings per share (EPS) increased by Rs. 9.07 to Rs. 27.63. The Price-to-Earnings (P/E) ratio stood at 11.84 times, while net worth per share was Rs. 241.04. The distributable profit amounted to Rs. 2.55 Arba, giving a distributable EPS of Rs. 18.42.
ADBL’s paid-up capital stood at Rs. 13.85 Arba, with reserves of Rs. 19.86 Arba. By the fiscal year’s end, the bank had collected deposits worth Rs. 2.93 Kharba and disbursed loans totaling Rs. 2.13 Kharba.
Key Financial Highlights
| Particulars | Ashad, 2082 | Ashad, 2081 | Difference |
|---|---|---|---|
| Share Capital | 13,855,224 | 13,451,674 | 3.00% |
| Share Premium | – | – | – |
| Retained Earning | 2,877,975 | 2,136,087 | – |
| Reserves | 16,990,026 | 15,119,474 | 15.14% |
| Reserve and Surplus | 19,868,001 | 17,255,561 | 15.14% |
| Deposits from customers | 293,574,843 | 243,826,858 | 20.50% |
| Loan and advances to customers | 213,142,809 | 203,617,049 | 4.68% |
| Net Interest Income | 9,821,484 | 10,552,781 | -6.93% |
| Net Fee and Commission Income | 1,335,872 | 1,439,603 | -7.21% |
| Total Operating Income | 11,995,821 | 12,220,277 | -1.84% |
| Impairment Charges | 106,221 | 2,452,167 | – |
| Operating Profit | 5,847,627 | 4,132,858 | 41.29% |
| Net Profit | 3,828,507 | 2,571,519 | 48.88% |
| Distributable Profit | 2,552,007 | 1,810,119 | 40.99% |
| EPS (Rs.) | 27.63 | 18.56 | 9.07 |
| Distributable EPS | 18.42 | 13.46 | 4.96 |
| PE Ratio | 11.84 | – | – |
| Networth per Share (Rs.) | 241.04 | 233.38 | – |
| Capital fund to RWA | 13.36 | 12.74 | 0.62 |
| Non-Performing Loan | 3.26 | 3.91 | – |
| Credit to Deposit Ratio | 68.68 | 77.80 | – |
| Base Rate | 5.87 | 8.09 | -2.22 |
| Interest Rate Spread | 3.96 | 3.95 | 0.01 |
