Kamal Everest Bank Limited (EBL) has delivered impressive financial results for the fourth quarter of the fiscal year 2081/82. The bank showed notable growth in key areas such as net profit, customer deposits, loans, and retained earnings compared to the same period last year.
Key Financial Figures
| Financial Metric | This Quarter (Rs. in ‘000) | Q4 2081/82 (Rs. in ‘000) | Q4 2080/81 (Rs. in ‘000) | Change (%) |
|---|---|---|---|---|
| Net Profit | 4,918,165,000 | 4,918,165,000 | 3,703,225,000 | +32.81% |
| Net Interest Income | 2,385,430,000 | 9,129,388,000 | 7,647,385,000 | +19.36% |
| Deposits from Customers | – | 298,818,400,000 | 232,316,060,000 | +28.63% |
| Loans and Advances to Customers | – | 213,623,545,000 | 178,215,399,000 | +19.87% |
| Retained Earnings | – | 4,954,470,000 | 3,302,369,000 | +50.03% |
| Reserves | – | 13,885,917,000 | 12,496,041,000 | +11.12% |
| Operating Profit | 2,370,882,000 | 7,454,235,000 | 5,663,071,000 | +31.63% |
| Cost of Funds (%) | – | 3.87% | 5.64% | -31.38% |
| Earnings per Share (Annualized) | – | Rs. 37.99 | Rs. 31.47 | +20.77% |
| Net Worth per Share (Rs.) | – | Rs. 247.39 | Rs. 236.28 | +4.74% |
| Non-Performing Loan Ratio (%) | – | 0.38% | 0.71% | -46.48% |
| Capital Adequacy Ratio (%) | – | 13.28% | 12.30% | +7.97% |
| Market Price per Share (Rs.) | – | Rs. 701.56 | Rs. 560.00 | +25.28% |
| Price to Earnings Ratio (P/E) | – | 18.47 | – | – |
Highlights of the Performance
-
Net Profit Growth: The bank’s net profit for the quarter reached Rs. 4.91 Arba, which is a strong 32.81% increase compared to Rs. 3.70 Arba from the same period last year. This jump shows the bank’s improved ability to generate profits.
-
Rising Interest Income: Net interest income climbed 19.36%, touching Rs. 9.12 Arba. This growth was fueled by higher lending and better interest margins.
-
Higher Customer Deposits and Loans: Customer deposits surged by nearly 29%, reaching Rs. 2.98 Kharba, while loans and advances grew almost 20% to Rs. 2.13 Kharba. This expansion reflects growing trust and business from clients.
-
Stronger Retained Earnings and Reserves: Retained earnings increased by 50%, indicating more profits kept in the bank to strengthen its financial base. Reserves also grew by over 11%, supporting future stability.
-
Improved Operating Profit and Reduced Costs: Operating profit rose by more than 31%, helped by a shift from impairment losses to gains. The cost of funds dropped by over 31%, enhancing overall profitability.
-
Better Asset Quality and Capital Strength: The bank saw a decline in non-performing loans (NPL) to 0.38%, down from 0.71%, showing improved loan quality. The capital adequacy ratio rose to 13.28%, providing a stronger safety buffer.
-
Market Performance: The bank’s shares closed the quarter at Rs. 701.56, resulting in a P/E ratio of 18.47 times, reflecting investor confidence.
Bank’s Strategic and Operational Insights
Everest Bank is focused on maintaining a strong financial position while continuing to innovate digitally and enhance customer service. The bank is dedicated to sustainable growth by managing risks effectively and expanding its customer base. It aims to keep delivering value to shareholders and stakeholders by balancing growth with careful risk management.
