Mega Bank profit rises by more than 30 percent; company can distribute satisfactory dividend

August 14, 2019 | Investopaper

Mega Bank has shown outstanding growth in the fourth quarter of F.Y. 2075/76. The bank is able to increase its profit by 30.30 percent. In the fourth quarter of this fiscal year, the bank made a profit of Rs. 1.72 Arab. Last year, the profit stood at Rs. 1.32 Arab.

Until the fourth quarter, the bank has paid-up capital of Rs. 10.39 Arab with Rs.3.22 Arab in reserves and surplus. The bank is able to grow its deposits and loans by 28.86 and 25.66 percent respectively in the one year period of this fiscal year. The deposits and loans stood at Rs. 78.68 Arab and Rs. 69.99 Arab respectively.

The increase in net interest income by 59.92 percent led to a rise in the net profit of the bank. Net Interest Income stood at Rs. 3.79 Arba until the fourth quarter. The free profit available for distribution stood at Rs. 1.36 Arab. This means the bank has the capacity to distribute 13 percent dividend to its shareholder this year. The Annualized Earnings Per Share (EPS) has improved to Rs. 16.55. However, Non-performing Loans have increased to 0.86 percent. NPL stood at 0.82 percent in the fourth quarter of the previous fiscal year. The base rate of the bank has declined to 9.98 percent.

See the financial highlights of Mega Bank in the fourth quarter of 2075/76 in the table below:

Mega Bank: Financial Highlights of 4th Quarter, 2075/76

HEADINGS 4TH QTR, 2075/76 4TH QTR, 2074/75 PERCENT CHANGE
PAID-UP CAPITAL (Rs. In Arba) 10.39 10.28 1.07
RESERVE & SURPLUS (Rs. In Arba) 3.22 2.34 37.61
DEPOSITS (Rs. In Arba) 78.68 61.06 28.86
LOANS  (Rs. In Arba) 69.99 55.7 25.66
NET INTEREST INCOME (Rs. In Arba) 3.79 2.37 59.92
PROFIT (Rs. In Arba) 1.72 1.32 30.30
DISTRIBUTABLE PROFIT (Rs. In Arba) 1.36
NON PERFORMING LOANS, NPL (%) 0.86 0.82 4.88
BASE RATE(%) 9.98 11.38 -12.30
EARNINGS PER SHARE, EPS (Rs.) 16.55 12.81
NETWORTH PER SHARE (Rs.) 130.93
MARKET PRICE PER SHARE (Rs.) 213
P/E RATIO (based on the price of Ashad 31, 2076) 12.87

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