Sindhu Bikas Bank’s Net Profit Surges 287% Despite Drop in Interest Income
Sindhu Bikas Bank has reported a stellar 287.60% YoY growth in net profit for FY Q4, driven by lower NPLs and a significant reversal in impairment charges.
Sindhu Bikas Bank Limited (SINDU) has posted an impressive 287.60% year-on-year increase in net profit, as per its unaudited fourth-quarter financial results for FY 2081/82.
The bank reported a net profit of NPR 117.8 million, compared to NPR 30.4 million in the same period last year. This jump comes despite a decline in net interest and fee income, thanks to a sharp drop in non-performing loans (NPLs) and a reversal of impairment charges worth NPR 179 million.
Key metrics during the review period:
Net Interest Income: ↓ 30.14%
Net Fee & Commission Income: ↓ 34.53%
Operating Income: ↓ 30.49%
Operating Profit: ↑ 417.39%
The bank’s NPL ratio improved to 6.03%, down from 10.63% last year, significantly reducing provisioning requirements.
Alongside net profit, Earnings Per Share (EPS) jumped from NPR 5.46 to NPR 21.15. Other highlights include:
Price-to-Earnings Ratio (P/E): 40.99x
Net Worth Per Share: NPR 86.70
Negative Reserve Fund: NPR -74.1 million
However, the bank’s balance sheet remains under pressure:
Deposits: ↓ 3.58%
Loans: ↓ 9.34%