Everest Bank Earns Rs. 2.11 Arba Net Profit in Q2; Annualized EPS at Rs. 30.86
Everest Bank Limited reported a net profit of Rs. 2.11 Arba in the second quarter of FY 2082/83, supported by loan growth and a decline in cost of funds.
Everest Bank Limited (EBL) has posted a net profit of Rs. 2.11 Arba in the second quarter of FY 2082/83, marking a 2.04 percent increase compared to Rs. 2.07 Arba earned during the same period of the previous fiscal year.
The bank’s paid-up capital stands at Rs. 13.72 Arba, while its total reserves amount to Rs. 14.94 Arba. During the review period, customer deposits increased by 2.05 percent to Rs. 3.04 Kharba, whereas loans and advances expanded by 10.77 percent to Rs. 2.36 Kharba.
Retained earnings declined by 31.68 percent to Rs. 3.34 Arba, while reserves grew by 7.83 percent to Rs. 14.98 Arba.
The bank’s net interest income rose by 5.96 percent to Rs. 4.57 Arba. Likewise, operating profit increased by 2.06 percent to Rs. 3.17 Arba. However, impairment charges surged by 60.97 percent to Rs. 56.27 crore during the quarter.
EBL managed to significantly reduce its cost of funds by 18.63 percent to 3.45 percent, which contributed positively to overall profitability.
On the capital front, the capital adequacy ratio improved to 12.27 percent from 11.32 percent in the previous year. Meanwhile, the net worth per share declined to Rs. 235.04.
The bank’s distributable profit after regulatory adjustments increased by 23.04 percent to Rs. 3.34 Arba. However, the annualized earnings per share (EPS) decreased to Rs. 30.86 from Rs. 32.06.
At the end of the quarter, Everest Bank’s shares closed at Rs. 660, resulting in a price-to-earnings (P/E) ratio of 21.39 times.